Looking to get into several properties 50-150k each.

10 Replies

I am new to real estate investing and now have the capital to purchase several properties 50-150k each anywhere in the US that will allow them to paid off by by the tenant, after all expenses and fees to a management company. My goal is to buy and hold these properties hopefully paying them off in 15-20 years. I have heard about several turn key groups but see there are mixed reviews from people on this site.

Like I said I am new to this and am looking for a mentor or someone to talk to about this process as well as some areas this may be achievable.

Thank you for your time

Hi @Hunter Schulz and welcome to BiggerPockets. Your investment goal is very achievable and you have joined a great community to get your investment questions answered. If you are looking into OOS markets that are possible to invest in, here is a list that may help you out:

  • Cleveland, Ohio
  • Dayton, Ohio
  • Cincinnati, Ohio
  • Memphis, Tennessee
  • Birmingham, Alabama
  • Saint Louis, Missouri
  • Indianapolis, Indiana
  • Detroit, Michigan
  • Louisville, Kentucky
  • Milwaukee, Wisconsin
  • Jackson, Mississippi

There are even more cities that you can look at, this is just a starting point for you. You referenced that you were looking at a few turnkey companies, may I ask which ones you were looking at? 

Originally posted by @Hunter Schulz :

I am new to real estate investing and now have the capital to purchase several properties 50-150k each anywhere in the US that will allow them to paid off by by the tenant, after all expenses and fees to a management company. My goal is to buy and hold these properties hopefully paying them off in 15-20 years. I have heard about several turn key groups but see there are mixed reviews from people on this site.

Like I said I am new to this and am looking for a mentor or someone to talk to about this process as well as some areas this may be achievable.

Thank you for your time

Getting loans for less than $50k is tough and expensive just so you know.  Cost of capital like 20%+.

Not much differentiates the Midwest cashflow markets IMO.  Focus on the most honest TK provider and best PM and buy in their market.  Clayton Mobley of Spartan above would be on my short list to interview. 

Don't dismiss local markets within about 30 minutes as long as there is quality management available to you.  Welcome to BP!

Originally posted by @Hunter Schulz :

I am new to real estate investing and now have the capital to purchase several properties 50-150k each anywhere in the US that will allow them to paid off by by the tenant, after all expenses and fees to a management company. My goal is to buy and hold these properties hopefully paying them off in 15-20 years. I have heard about several turn key groups but see there are mixed reviews from people on this site.

Like I said I am new to this and am looking for a mentor or someone to talk to about this process as well as some areas this may be achievable.

Thank you for your time

 Welcome to the site Hunter.

Disclaimer: I'm a partner in a TK company in Indianapolis. I know (either personally or by reputation) many of the good providers. Each one may be a little different in their approach but these are the ones that stand out with excellent reputations.

@Clayton Mobley - Spartan Invest

@Chris Clothier - Memphis Invest

@James Wise - Holton-Wise

Note, there are some other great "promoters" out there, but like us, these companies are actually "providers" and manage the processes from start to finish.

If your goal is to build wealth, paying off your properties is counter-intuitive. Your returns on invested equity in 10 years would provide lesser returns. I can illustrate this for you. Also, why are you looking to buy several small properties? If you analyze the cumulative returns between the several properties and compared a to a multifamily investment could you be convinced against buying several small homes? Generally in the single family realm in the NW, the investor has to give up cashflow for pay down or vise versa. With enough capital, and a larger investment you can get both. Send me a PM, I do both RE brokerage and financing in OR and WA. 

@Hunter Schulz I am just finishing up a similar project for 12 doors using TK providers. If you like I can let you know who I ultimately selected and how they have worked with me and what I like about them. The point that @Steve Vaughan made is valid but properties at the very low end of the price scale in the current environment are probably not advisable anyway. Happy to go over my journey and make all the intros. Just PM me