Canyon Country, CA 路 Member since 2016 路 24 posts 路 9 votes
Hello fellow investors! Just want to say hello and get a few ideas from you. I been wanting to be landlord for many years and I know that this year, I will own my first real estate investment property. I have read books and listened to many Podcast and I have overcome the fear of not going for it. I know that I am looking for cash flow for the future.
I live in Los Angeles, so as we all know, the houses are pretty pricey. I began looking into turnkey properties, within the last two months, and it seems like the way to go.
I have reviewed the website turnkey-reviews.com and it seems to good to be true, but at the same time, I have read stories where I have second thoughts, but those stories can happen in my own backyard.
I was thinking of buying my first rental home in the following cities, since I have family there:
Phoenix, Chicago or San Antonio.
What are your thoughts in these cities?
What would you recommend in a Turnkey company?
By the way, Love reading the blogs of the experience of different investors!
Thank you in advance!
@Derek Carlson I heard a guy speak at a real estate event I was invited to speak. From what I understand is that the property taxes are reassessed every 3 years. If values go up, so do your taxes. Within that presentation, this guy was talking 3 to 6% year over year appreciation on his properties. I would think for Chicago properties to consistently cash flow well, you would need to increase rents consistently as taxes will go up and insurance always goes up. That is why I like linear markets.
You won't find much for turnkey companies in Phoenix because that market tapped out for cash flow a few years ago...so nothing left for turnkey folks to offer there. There is a turnkey outfit or two in San Antonio but I haven't been impressed enough with them to work with them. Now Chicago, on the other hand....lots of potential there. There are a few turnkey outfits and some pretty cool properties offered, and the numbers are fantastic.
So of the three markets, I definitely recommend Chicago over the other two.
@Juan LozanoMy first piece of advice is not to choose a market just because you have family there. It doesn't make sense to have family watching your investment that's not performing because it's not a good cash flow market. The train left the station 3 or 4 years ago in Phoenix and San Antonio isn't a desirable cash flow market due to pricing, high property taxes and insurance. Of the 3 markets that you mentioned, the one that might fit your objectives best is Chicago but I would also look at markets like Indianapolis and Kansas City which have good cash flow combined with very affordable prices and good economies. Since you're already buying outside of your hometown, focus on the markets with the best economic and demographic fundamentals combined with good cash flow. Unless your family members are property managers, I don't see how they offer any value other than to drive buy and see if your house is still there. My advice is to focus on markets that offer the best financial returns. I'd be happy to talk to you about Indianapolis or Kansas City if you're interested in either.
I have noticed that Indianapolis, Memphis and Kansas City are also viable options sinc many of the BP forum members mention them. Keeping my options open.
@Ali BooneI have casually looked at the Chicago market but it seems like property taxes are extremely high compared to other cities mentioned here. I haven't dug into the Chicago market deeply enough to know whether this was local to the specific areas where I was looking or whether it is city wide. Is this correct and do the low home prices and higher rents more than offset the higher taxes?
Hello fellow investors! Just want to say hello and get a few ideas from you. I been wanting to be landlord for many years and I know that this year, I will own my first real estate investment property. I have read books and listened to many Podcast and I have overcome the fear of not going for it. I know that I am looking for cash flow for the future.
I live in Los Angeles, so as we all know, the houses are pretty pricey. I began looking into turnkey properties, within the last two months, and it seems like the way to go.
I have reviewed the website turnkey-reviews.com and it seems to good to be true, but at the same time, I have read stories where I have second thoughts, but those stories can happen in my own backyard.
I was thinking of buying my first rental home in the following cities, since I have family there:
Phoenix, Chicago or San Antonio.
What are your thoughts in these cities?
What would you recommend in a Turnkey company?
By the way, Love reading the blogs of the experience of different investors!
@Derek CarlsonWithout pulling up Chicago properties to see what the numbers are specifically, I do know the properties I work with cash flow very well. Not sure what the taxes are on them (can find out if I pull some up, so if you want me to let me know) but whatever they are, they still allow for high returns. Chicago has higher returns than a lot of the markets I work with.
@Derek Carlson I heard a guy speak at a real estate event I was invited to speak. From what I understand is that the property taxes are reassessed every 3 years. If values go up, so do your taxes. Within that presentation, this guy was talking 3 to 6% year over year appreciation on his properties. I would think for Chicago properties to consistently cash flow well, you would need to increase rents consistently as taxes will go up and insurance always goes up. That is why I like linear markets.
Yeah we just got hit with the latest rounds of tax increases in Chicago and my landlord just raised our rents. From a renters point of view, I'm not thrilled to pay more for the same apartment but I understand the dynamics of Chicago's higher taxes and have come to expect it. Plus my landlord isn't the only one that has had to raise rents. In my area renters make up about 40% of the population with foreclosures being modified constantly to multi-units. It's a good opportunity if you are interested in 2-4 unit properties and the rent can do nothing but continue to go up wherever the economy chooses to swing.
Hello fellow investors! Just want to say hello and get a few ideas from you. I been wanting to be landlord for many years and I know that this year, I will own my first real estate investment property. I have read books and listened to many Podcast and I have overcome the fear of not going for it. I know that I am looking for cash flow for the future.
I live in Los Angeles, so as we all know, the houses are pretty pricey. I began looking into turnkey properties, within the last two months, and it seems like the way to go.
I have reviewed the website turnkey-reviews.com and it seems to good to be true, but at the same time, I have read stories where I have second thoughts, but those stories can happen in my own backyard.
I was thinking of buying my first rental home in the following cities, since I have family there:
Phoenix, Chicago or San Antonio.
What are your thoughts in these cities?
What would you recommend in a Turnkey company?
By the way, Love reading the blogs of the experience of different investors!
Thank you in advance!
Juan, now keep in mind I'm a simple country guy, who enjoys being in my garden over an office any day of the week. That's why I invest in real estate, to create cash flow, and free up my time, to enjoy life.
I do a lot of Q& A on this subject on Bigger Pockets on turnkey and resellers. At one point I was actually both at one time. If you would like then private message me, and I would be more than happy to send my answers instead of reposting. I'm a bit more blunt than most as I am unbiased. I don't sell to the public anymore (really I don't sell turnkey).
Now the quick advice is find local folks who are buying in these markets.
Rules of the Game (or my rules for the game we call investing)
1: Meeting local folks and attend the local meetings to pick their brains.
2: Determine your goals and objectives first! Think about what do you want to accomplish and why. Both need to be answered first.
3: Your financial picture like where you are at. When investing it is better to know your financial picture. Some folks jump in then get stuck because they did not understand their personal financial picture first. This will be more important down the road.
4: Budget finances. Include things like adding in a trip to each market that you plan on visiting. Make sure you spending a few dollars on each market( travel ) ,before you spend big money on investments.
5: In each market pick out three (3) of each of the following:
a. Turnkey guys or resellers (they are different so understand that as well)
b. Property Management
c. Current client referrals are key in any business.
d. See finished product, rented projects, and houses in rehab stages.
E. Try to find enjoyable things to do in each market, some markets great numbers but just boring as hell. ( Just saying)
Then make travel plans. I know this is simple, but realistic.