Investor · Los Angeles, CA · Member since 2019 · 17 posts · 9 votes
Hi- I'm looking for my first rental property... under $300k.. and since I live in Los Angeles I'm having to look outside of my area.... and I work, so I don't have time or money to do much traveling or heavy duty rehabbing... and I don't have boots on the ground anywhere. I'm considering Las Vegas, Phoenix and Palm Springs areas... but nothing yet so far... and none of those areas are as cheap as the midwest. It would be attractive to buy something Turnkey if I could find a company I felt good about. I've talked to a few. So I'd like to know whether anyone has had any experience with the following... good or bad... or any other Turnkey operations - thanks!
Chris Salazar/Arsenal Properties (they focusing on Davenport, IA) Michael Drew/Real Estate Done 4 U (focusing on Indiana) Aaron Adams/Alpine Properties (focusing on Indianapolis) JWB Rental Homes (focusing on Jacksonville, FL)
Rental Property Investor · Prairie Village, KS · Member since 2015 · 2k+ posts · 2k+ votes
6y
@Lisa Gauff
I’ll just throw out a couple ideas - I know of a company in Kansas City with a cool alternative to TK key concept. You buy houses that the company master leases from you for a rent by the room model. The cash flow is higher, the property management is free, and you get to hold assets in A and B areas. My problem with TK companies has always been that you’re buying at top dollar in crappy areas. At least that is what I’ve seen in the Kansas City market.
Another option is going passive in larger deals. Just a couple things to think about!
The Oklahoma City Metro and surrounding areas are also a popular market for out of state investors, we see a lot of CA investors like yourself investing here.
The folks over at Table Investments do a lot of turnkey deals in this market, they are very professional, and have an interesting turnkey model. Kiera Underwood is one of the people over there you can reach out to learn more.
Although I have not invested with them yet, their business model and the information they provide about the market here I find to be very valuable. Worth talking to in my mind.
Sorry that I don't know anything about the turnkey companies you listed, but I hope this helps. Good Luck!
@Lee Ripma is livehomeroom.com the rent by the room option you were thinking of? I am a first time OOS investor and this concept sounds interesting. I'm researching the Kansas City and Sioux Falls markets but know I'll need a good team to make OOS work. This could be a great option.
Rental Property Investor · Prairie Village, KS · Member since 2015 · 2k+ posts · 2k+ votes
5y
@Laura Gilles - yes. I actually just went under contract to buy one in the KC market today. Happy to make an intro the team here. It’s a great option for buying A and B assets out of state.
Thanks, @Lee Ripma. Where did you choose to buy for this type of investment? Is there an area-maybe colleges,hospitals-where this model works best. I will get in touch with them.Any specific contact I should ask for? I have lots of questions!
Rental Property Investor · Prairie Village, KS · Member since 2015 · 2k+ posts · 2k+ votes
5y
@Laura Gilles - I don’t think I can post the link here but if you Google homeroom Kansas City they will come up. There is a lot info there and you can learn about it. I own a lot of rentals in KC. I like the homeroom model and I wanted to buy one. I personally really like Johnson County KS because it’s in very high demand due to schools. We joke that Johnson county is the “California of KC” because it has tons of demand, high prices, low cap rates, and little cash flow. In other words, an incredible place to hold assets! When one came up in Lenexa KS I jumped on it. The more I invest in real estate the more I love A class assets. I just got one with HomeRoom! A asset that cash flows! Truly the best of both worlds!
Congrats @Lee Ripma I will check into them for sure. It seems many investors like MO over KS but cash flow AND A class property is a great combo, THANKS!
Rental Property Investor · Prairie Village, KS · Member since 2015 · 2k+ posts · 2k+ votes
5y
@Laura Gilles - I mostly own in MO but I have a few rentals in KS as well, including this new one for HomeRoom. KS has slightly higher prop taxes. Johnson Co. has great schools so is always in demand.
Spokane, WA · Member since 2019 · 4 posts · 0 votes
5y
@Laura Gilles Just curious did you end up doing anything with livehomeroom? Who were the other folks you chatted with? I have been talking with LivingRoom but haven't made a decision.
Rental Property Investor · Lehi, UT (Lehi) · Member since 2018 · 91 posts · 99 votes
5y
@Lisa Gauff You should look at a company called Cashflow tactics. I can personally vet one of the owners. His name is brad. Great team and they invest in the Midwest.