Starting out w/ Turnkey Properties before doing Apartments

Starting out w/ Turnkey Properties before doing Apartments

Investor · King of Prussia, PA · Member since 2014 · 1k+ posts · 339 votes

Good day BP Nations. I currently own a duplex I bought with cash back in May 2012. I'm currently looking forward to an arbitration settlement this September and thinking of purchasing some turnkey properties in the mid-west and south east of the country to substitute my income and more than cover my expenses.  

After acquiring some turn-keys and generating minimum $10K/month I plan to find a mentor to learn syndication in apartments. Since 2012 up till now I've been reading books, listening to podcasts from different people, and picking fellow BPer's brain on real estate. What do you think? Please share.  

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Investor · Cincinnati, OH · Member since 2013 · 2k+ posts · 1k+ votes
10y

@Ayodeji Kuponiyi I do multifamily syndication and understand your thought process of wanting a stable income before you dive into the big stuff. 

You certainly can learn a lot from reading books, podcasts, BP, etc. but you learn a lot faster by doing it. So if multifamily is your goal then I'd get whatever income level makes you comfortable (and quite frankly maybe a little less so you have some self-imposed pressure) then get rocking on doing it. 

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  • Eric TaitPro Member
    Investor · Houston, TX · Member since 2013 · 314 posts · 146 votes
    10y

    There are some good courses out there on Syndication, I am friends with the guys who put this one on. 

    https://realestateguysradio.com/events/how-to-rais...

    I've been many times and it has been great, you learn as much from the other attendees as you do from the front of the stage.

  • Investor · King of Prussia, PA · Member since 2014 · 1k+ posts · 339 votes
    10y

    @Eric Tait thanks for sharing! 

  • Real Estate Coach · Venice Beach, CA · Member since 2012 · 6k+ posts · 3k+ votes
    10y

    Sounds like an awesome plan to me! If you need any help with the turnkeys, happy to help.

  • Investor · King of Prussia, PA · Member since 2014 · 1k+ posts · 339 votes
    10y

    @Ali Boone thanks for responding, always a pleasure reading your post. 

    I'll take all the help I can get. I've been currently looking for the market where the job  growth is strong. The markets I've narrowed down to is: Atlanta, Tennessee, Ohio, Kentucky, Indiana and certain parts of Michigan. What do you think?

  • Real Estate Agent · Flint, MI · Member since 2015 · 270 posts · 71 votes
    10y

    @Ayodeji Kuponiyi and feel free to reach out to me for any help here in the Michigan market that I can be. 

    Much success to you ventures!

  • Real Estate Investor · Olathe, KS · Member since 2015 · 100 posts · 26 votes
    10y

    @Ayodeji Kuponiyi Sounds like a solid plan.  I"m flirting with the idea of moving into larger multi families too, after a solid base of SFHs.  Good luck to you. 

  • Indianapolis, IN · Member since 2014 · 205 posts · 74 votes
    10y

    @Ayodeji Kuponiyi like the others have already said, sounds like a good plan!  It feels good when you settle on a plan and know which direction you are going. That is an acomplishment in itself!

    I am in Indianapolis, I have my brokers license and represent a turnkey provider, if I can be of assistance just give me shout.

    Happy investing!

  • Specialist · Lakewood, CO · Member since 2014 · 1k+ posts · 1k+ votes
    10y

    Why are you doing turnkey first? I would see if I can find someone doing apartments and go in as an equity investor with them, or give them a little piece of the pie to help you secure your own deal. I have heard some turnkey providers are doing turnkey apartments as well, so that may be something your style. Most of the time when an investor wants to do houses first, it's because they want to learn all about the RE investing world. Buying a bunch of turnkey doesn't really teach you anything, and I don't see how that is a logical step toward apartments.

    Best of luck and happy investing!

  • Investor · King of Prussia, PA · Member since 2014 · 1k+ posts · 339 votes
    10y

    @Bryan O. I want to purchase 2-4 units turnkey properties first because I wanted to secure passive monthly income ($10K-$20K/month) giving me the flexibility to learn under a mentor's wing the fundamentals of syndication. Ultimately, I want to get into apartment investing.

  • Investor · King of Prussia, PA · Member since 2014 · 1k+ posts · 339 votes
    10y

    @Michelle T. Thanks for the feedback! Like @Bryan O. mentioned, I feel like I should start in apartments but I want to secure passive income so I can focus full time learning under mentor(s). 

  • Investor · King of Prussia, PA · Member since 2014 · 1k+ posts · 339 votes
    10y

    @Account Closed I like apartments and how its scalability. I just want to secure passive monthly income.

  • Cailyn AunePro Member
    Tacoma, WA · Member since 2015 · 176 posts · 88 votes
    10y
    Ayodeji Kuponiyi Are you planning on investing with cash? I'm not sure where you would be able to buy 2-4 SF turnkeys and get 10k a month.... It seems like with 2-4 turnkeys... You would be hard pressed to get a net of 800-1200 a month....??
  • Real Estate Agent · Southington, CT · Member since 2008 · 5k+ posts · 3k+ votes
    10y

    I would look for someone who has taken the same path from turnkey to syndication and offer to work with/for them for free and learn the business from them.

  • Gino BarbaroPro Member
    Rental Property Investor · St Augustine, FL · Member since 2014 · 2k+ posts · 1k+ votes
    10y

    @Ayodeji Kuponiyi

    Hi Ayodeji

    If you end goal is to go into multis, why not focus on it now.  You need to learn the syndication business and how to raise money.  Listen to Dave Lindahl and his advice on private money.  I would put my capital into multis that I control and can charge a management fee and charge an acquisition fee than a few turnkey homes that will modestly cash flow

    PM me if you want advice on multis

    Gino

  • Investor/RE Broker · Eugene, OR · Member since 2014 · 3k+ posts · 968 votes
    10y
    Originally posted by @Ayodeji Kuponiyi:

    @Bryan O. I want to purchase 2-4 units turnkey properties first because I wanted to secure passive monthly income ($10K-$20K/month) giving me the flexibility to learn under a mentor's wing the fundamentals of syndication. Ultimately, I want to get into apartment investing.

     Bryan, I would say the best place for turnkey 2-4 units right now is Chicago - focusing on the solid historical brick and greystone properties for great bones.  Indianapolis can work for these too, but I think it lot more challenging for these small multis there.

  • Investor · Cincinnati, OH · Member since 2013 · 2k+ posts · 1k+ votes
    10y

    @Ayodeji Kuponiyi I do multifamily syndication and understand your thought process of wanting a stable income before you dive into the big stuff. 

    You certainly can learn a lot from reading books, podcasts, BP, etc. but you learn a lot faster by doing it. So if multifamily is your goal then I'd get whatever income level makes you comfortable (and quite frankly maybe a little less so you have some self-imposed pressure) then get rocking on doing it. 

  • Specialist · Rockland, MA · Member since 2010 · 7k+ posts · 2k+ votes
    10y

    @Ayodeji Kuponiyi

    I have an emerging markets list from across the country EMAIL me if you want a copy.

    I work for Dave Lindahl feel free to connect with questions.

    Paul

  • Investor · King of Prussia, PA · Member since 2014 · 1k+ posts · 339 votes
    10y

    @Cailyn Aune Not 2-4 SF but 2-4 Units not SFH.

    @Michael Noto not a bad idea 

    Thanks @Gino Barbaro I will PM you

  • Investor · King of Prussia, PA · Member since 2014 · 1k+ posts · 339 votes
    10y

    @Joe Fairless You're probably right, thanks for the advice. I listen to you podcast, hopefully I'll be a guest one day in the future.

  • Investor · King of Prussia, PA · Member since 2014 · 1k+ posts · 339 votes
    10y

    @Paul Timminsthanks,  i just messaged you

  • Specialist · Rockland, MA · Member since 2010 · 7k+ posts · 2k+ votes
    10y

    @Ayodeji Kuponiyi

    My BP PM does not work you have to EMAIL me.

    Paul

  • Investor · King of Prussia, PA · Member since 2014 · 1k+ posts · 339 votes
    10y
  • Rental Property Investor · Lindon, UT · Member since 2015 · 862 posts · 438 votes
    10y

    I've created a passive $10k per month income through turn-key rentals myself.  I have had some rentals for 10+ years and a bunch I picked up in the last 15 months thanks to @Chris Erwin.  Reach out to Chris and he can connect you with his inventory of rent producing, cash flowing properties.

  • Akron, OH · Member since 2016 · 19 posts · 2 votes
    10y

    @Darren Eady .... It is good to know you have been able to create a passive $10k per month through turn-key rentals. I am new to RE investing and I am planning to start with turn-key properties. Please kindly advise how much capital will be needed to do this, especially if one is using more of loan and not cash.


    Thanks,

    Sunday Akin.

  • Investor · King of Prussia, PA · Member since 2014 · 1k+ posts · 339 votes
    10y

    @Darren Eady thank for the tip!

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