Hey everyone! I’ll cut right to the chase - I’m an engineer working at Tesla, 24 years old, and super interested in real estate investing (for a couple years now).
I want to buy my first rental property, however, my hours are super long and my day job is demanding. I don’t have time to find and buy a property under market value, fix it up, find a tenant, etc., so I’m interested in turnkey for my first few investments. Once I get the cash flow going, I plan to work my day job less and make larger, more time-consuming real estate investments.
All of that said, I hear Turnkeys are good at providing cash flow but not so great at immediate equity gain / appreciation of the property itself - for obvious reasons. Therefor, I am wondering if anybody knows of a good turnkey LOCATION to invest in, that generally offers good cash flow as well as good potential for growth and appreciation over the next 5 years.
Hi Nicholas, Welcome to BP!! You are on the right track at the right age to jump into investing. I explored the Cleveland and Memphis markets and bought a turnkey property with Martel Turnkey. Its been 6 months since and the property has been cash flowing positively and appreciation has been decent as well. Let me know if you want to connect and chat about the purchase process.
I am in a very similar situation to you, looking to buy my first turnkey property this year. Obviously, I don’t have any experience, but am looking in Kansas City, Dayton (OH), and a couple Florida markets. Not sure how much appreciation upside there is, but if it’s buy-and-hold, it’s likely never going to be cheaper than today. While there may be appreciation opportunities in other markets, it seems like the inventory is getting pretty low.
Would love to hear what you end up choosing and why, when you do make a decision.
@Peter T Kissinger between Kansas City and Dayton, I personally believe that Kansas City is the much stronger of the two when you look at economic and demographic trends. Kansas City's population has grown 7.7% (outpacing the U.S. average) while Dayton's population has declined 1.1% during the same period. I don't know the FL markets well but just be aware that insurance rates are very high which hits your bottom line.
Look into KC. Good mix of appreciation, job growth and solid rent
@Caleb Brown thanks for the recommendation, Caleb - I really appreciate it.
@Aj Parikh thanks so much AJ! I’d definitely be interested in connecting and sort of hearing your take on the process.
@Peter T Kissinger thanks for the reach out Peter - I’ve heard from many so far that KC is a solid look. I’d love to sync up with you in the near future about this topic!
@Nicholas Di Giugno you may want to take a look at Houston and Dallas for markets with good potential for appreciation with a modest price entry point (inventory is obviously incredibly low but worth tracking). I also just purchased in Birmingham and also like the appreciation potential up in Huntsville, AL. As others said, KC is a solid market too especially in some specific neighborhoods
@Nicholas Di Giugno welcome to BP and congratulations on your decision to start your REI journey!
Originally posted by @Wale Lawal :
@Nicholas Di Giugno welcome to BP and congratulations on your decision. I like the fact that you understand the BRRRR and Fixer-Upper are very time consuming.
You can talk to @Ali Boone she is a very experience Turnkey Investor.
Thanks so much for the shout out! Always open to connecting.
The Huntsville market is hot right now. Average appreciation across Madison County was 12% last year. A great year is 2%-3%.