Turnkey/Buy and hold

Orange, CA · Member since 2017 · 14 posts · 6 votes

HI BP just wanted to introduce myself Im new to investing looking to buy my first rentals I have been researching a few markets Memphis, Akron, Columbus, Dayton, Toledo ext. just ready to get my feet wet looking for cash flow to eventually supplement my retirement. I would appreciate any advice from those of you already doing it! Thanks have a great one!

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Mark AinleyBusiness Member

Property Manager · Roselle, IL (Chicago Suburb) · Member since 2013 · 2k+ posts · 1k+ votes

@Joe Crooks Congrats on your plan. Be sure to understand your market and the local economy. A lot of turnkey buyers are paying top dollar in some rough areas where if the bottom falls out those areas will be first to collapse or not appraise.

MUST READ TIPS:

1.Turnkey is more about the property manager you hire than the property you buy. We are watching a lot of turnkey buyers in Chicago that 1-3 years after their initial close the property and the buyers investment has collapsed due to poor management. It is now costing them a year or twos worth of income to get back on track.

2. Get a home inspection. Almost anywhere you are buying in the midwest you are buying 50-120 year old homes and they come with their issues and you want to make sure you are not buying those problems. Replacing a section of floor, door, or light fixture is pennies compared to the $7,000-$10,000 tuck point job the seller never completed.

3. Find previous buyers from that provider and get feedback. Sellers tend to not like to hand out previous buyers info for privacy issues but BP is a great place to do that.

[Solicitation Removed by Moderator]

[email protected]630-781-6744 Podcast Guest on Show #72

GC Realty & Development LLC4.61090 Reviews

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Arpan Patel
Investor · Chicago, IL · Member since 2010 · 504 posts · 191 votes
9y
Make sure you are comfortable with the areas and have some boots on the ground who you trust that can look out for your investments from time to time. It's important to not be defrauded because you were investing from afar. Happy Hunting and let me know if you wanna know some more about Chicago (personal bias of course!)
1 Reply
Lane Kawaoka
Rental Property Investor · Honolulu, HAWAII (HI) · Member since 2011 · 4k+ posts · 2k+ votes
9y
Be careful I have been seeing a lot warzone properties come through to newbies. Make sure you do your research with someone on the ground.
2 Reply
Engelo RumoraBusiness Member
Investor · Toledo, OH · Member since 2013 · 4k+ posts · 2k+ votes
9y
Originally posted by @Joe Crooks:

HI BP just wanted to introduce myself Im new to investing looking to buy my first rentals I have been researching a few markets Memphis, Akron, Columbus, Dayton, Toledo ext. just ready to get my feet wet looking for cash flow to eventually supplement my retirement. I would appreciate any advice from those of you already doing it! Thanks have a great one!
You're on to some great markets there mate.
Find the right people and you will do well
Much success
Podcast Guest on Show #89
Oz Realty4.5369 Reviews
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Mark AinleyBusiness Member
Property Manager · Roselle, IL (Chicago Suburb) · Member since 2013 · 2k+ posts · 1k+ votes
9y
@Joe Crooks Congrats on your plan. Be sure to understand your market and the local economy. A lot of turnkey buyers are paying top dollar in some rough areas where if the bottom falls out those areas will be first to collapse or not appraise.
MUST READ TIPS:
1.Turnkey is more about the property manager you hire than the property you buy. We are watching a lot of turnkey buyers in Chicago that 1-3 years after their initial close the property and the buyers investment has collapsed due to poor management. It is now costing them a year or twos worth of income to get back on track.
2. Get a home inspection. Almost anywhere you are buying in the midwest you are buying 50-120 year old homes and they come with their issues and you want to make sure you are not buying those problems. Replacing a section of floor, door, or light fixture is pennies compared to the $7,000-$10,000 tuck point job the seller never completed.
3. Find previous buyers from that provider and get feedback. Sellers tend to not like to hand out previous buyers info for privacy issues but BP is a great place to do that.
[Solicitation Removed by Moderator]
[email protected]630-781-6744 Podcast Guest on Show #72
GC Realty & Development LLC4.61090 Reviews
Website View Page
4 Reply
Elizabeth Wilson
Real Estate Investor · Memphis, TN · Member since 2016 · 940 posts · 695 votes
9y
@Joe Crooks - like the rest of the guys have said it is more about the company than the place (though Im biased and would push for Memphis...)
I'd also add to check out things that are city/state specific like taxes and tenant laws. There are many places that I wouldn't want to invest because they are anti-investor.
I'd also look for places that you like to visit. All things equal, if you have to go there for work, it might as well be pleasurable and have good BBQ... :-)
2 Reply
Joe Crooks
OP
Orange, CA · Member since 2017 · 14 posts · 6 votes
9y
@Arpan Patel, Thank you for the advice and I'm going to look at Chicago as well thanks.
0 Reply
Joe Crooks
OP
Orange, CA · Member since 2017 · 14 posts · 6 votes
9y
@Elizabeth Wilson, thank you for your response yea celebrating a great deal with some good blues and BBQ sounds pretty good to me. Could you recommend any areas I should look at or stay away from in the Memphis area?
0 Reply
Joe Crooks
OP
Orange, CA · Member since 2017 · 14 posts · 6 votes
9y
@Mark Ainley, Great tips Mark thanks for your help.
0 Reply
Joe Crooks
OP
Orange, CA · Member since 2017 · 14 posts · 6 votes
9y
@Engelo Rumora, thank you
1 Reply
Joe Crooks
OP
Orange, CA · Member since 2017 · 14 posts · 6 votes
9y
@Lane Kawaoka, Thanks Lane I appreciate your advice
0 Reply
Joe Crooks
OP
Orange, CA · Member since 2017 · 14 posts · 6 votes
9y
@Candace Postell , Thanks Candace that is a market that seems to have a lot of good prices any any specific areas you would stay out of?
0 Reply
Elizabeth Wilson
Real Estate Investor · Memphis, TN · Member since 2016 · 940 posts · 695 votes
9y
@Joe Crooks - Are you wanting to work with a turnkey company? We've got some great ones here who would love to work with you. They would/should be great advisers about where to invest. There are several areas of town we do not invest but there are others who love those areas. REI is interesting like that - there truly is a property for everyone! But as an OOS investor, there are zipcodes/areas I'd personally avoid.
There are several TKP who are great guys and active on BP. I know both @James Wachob and @Chris Clothier are hosting investor weekend events during our big Memphis in May BBQ festival. I'm sure they'd be happy to have you. :)
There are also loads of other OOS investors who invest in Memphis. I have not worked with any TKP so can't talk about their processes.
[Solicitation Removed by Moderator]
1 Reply
Tom Ott
Equity Raiser and Turnkey Provider · Cleveland, OH · Member since 2016 · 4k+ posts · 1k+ votes
9y
Originally posted by @Joe Crooks:

HI BP just wanted to introduce myself Im new to investing looking to buy my first rentals I have been researching a few markets Memphis, Akron, Columbus, Dayton, Toledo ext. just ready to get my feet wet looking for cash flow to eventually supplement my retirement. I would appreciate any advice from those of you already doing it! Thanks have a great one!
Hello and welcome! This is really a great place to get started. You can see great returns in Ohio, including around the Cleveland market. Best of luck to you.
0 Reply
Jay Baker
San Francisco, CA · Member since 2017 · 29 posts · 3 votes
9y
Make sure that the property cashflows from the beginning. If you can't get at least a 3% yield from the beginning you could run into trouble down the line.
0 Reply
Matt R.
Sherman Oaks, CA · Member since 2013 · 3k+ posts · 2k+ votes
9y
Originally posted by @Joe Crooks:
HI BP just wanted to introduce myself Im new to investing looking to buy my first rentals I have been researching a few markets Memphis, Akron, Columbus, Dayton, Toledo ext. just ready to get my feet wet looking for cash flow to eventually supplement my retirement. I would appreciate any advice from those of you already doing it! Thanks have a great one!
Sounds good. Be aware initial cash flow on paper may have little relationship to total profits. Many turnkey markets one might see on Bp are declining. This could be an investment that it will be difficult to exit for what you paid. Hopefully you get a location that is improving and that will be your back stop of future profits down the road vs just the possible cash flow alone. Many tk marketers on bp specialize in declining markets and that does nothing good for you except rope you into an eventual loser overall.
Good luck with your search!
0 Reply
Mayank S.
Investor · Herndon, VA · Member since 2015 · 185 posts · 74 votes
9y
@Joe Crooks I see majority of your markets mentioned are based in Ohio. is there a reason you are looking to invest there or open in other markets too? I am saying because there are many outside Ohio which are good cash flow markets with plenty of TK providers.
Just make sure wherever you finally go whomsoever you decide to work with , vet them heavily as its more about people than the market who can make or break your investment. Due diligence at every stage before parting with your hard earned dollars...my 0.02 cents...good luck!!!
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Larry Fried
Investor/RE Broker · Eugene, OR · Member since 2014 · 3k+ posts · 968 votes
9y
@Joe Crooks A week ago I was just in Dayton for the first time. I already have some property interests there that I obtained through a platform that allows me to buy into 10 SFR portfolios that are co-owned by the managers for aligned interests. I wrote about my investments with this company in my blog article Have I Found the Holy Grail of Passive Real Estate Investing?
Also met with an excellent turnkey company that is operating in Dayton and Cincinnati suburbs just south. [Solicitation Removed by Moderator]
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Will BarnardPro Member
Moderator
Developer · Santa Clarita, CA · Member since 2008 · 15k+ posts · 10k+ votes
9y
This thread is full of solicitations that had to be removed. You are not permitted to solicit other members for anything in the forums outside of the marketplace forums. If any more solicitations occur here, this thread will be shut down. Thank you for your cooperation.
Podcast Guest on Show #130
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Ozzy SmithPro Member
Specialist · Dayton, OH · Member since 2014 · 352 posts · 265 votes
9y
I'm a local investor in the Dayton Ohio area. If you guys have questions drop me a line. I specialize in assisting out of state investors that invest here. I'd be happy to talk and assist anyway I can
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Joe Crooks
OP
Orange, CA · Member since 2017 · 14 posts · 6 votes
9y
@Jay Baker Thanks for your post Jay but I'm not sure what you mean by 3% are you referring to rent to value?
0 Reply
Jay Baker
San Francisco, CA · Member since 2017 · 29 posts · 3 votes
9y
@Joe Crooks I'm talking about net rental yield. You can estimate it with this tool: http://www.calculaterentalyield.com
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James WachobBusiness Member
Real Estate Broker · Memphis, TN · Member since 2015 · 1k+ posts · 890 votes
9y
@Joe Crooks if you make it to Memphis, I'd love to show you around and grab some famous BBQ while we are at it!
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Ali Boone
Real Estate Coach · Venice Beach, CA · Member since 2012 · 6k+ posts · 3k+ votes
9y
Hey Joe! All of my properties are out-of-state turnkeys and I also live in SoCal. Happy to chat anytime and share experiences and/or talk markets or whatever might be of some help! Message me anytime.
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Joe Crooks
OP
Orange, CA · Member since 2017 · 14 posts · 6 votes
9y
@Jay
@Jay Baker got it Jay thank you for the advice
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Joe Crooks
OP
Orange, CA · Member since 2017 · 14 posts · 6 votes
9y
@Ali
@Ali Boone Hi Ali thank you for your response I would like to contact you and discuss a few things I have read some of your articles and you are already doing what I want to do so I would love to talk with you I'll message you
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