San Diego, CA · Member since 2016 · 44 posts · 31 votes
Hi BP!
I became interested in real estate investing about six months ago and since then have begun work at a full-time position. The thing that really lit a fire in me to become financially independent though was being disowned by the CEO.
In any case, I'm here to document my first deal. Because I am based in San Diego and working a full-time position, I plan to pursue a class A property single-family residential from a turnkey provider that can cash flow at least $150 a month. I have reached out to a few and hope to keep you all updated as my journey of building a real estate portfolio progresses! This is so exciting!
Please feel free to reach out with any questions you may have. And here's to giving back to the community that has given so much to me.
I became interested in real estate investing about six months ago and since then have begun work at a full-time position. The thing that really lit a fire in me to become financially independent though was being disowned by the CEO.
In any case, I'm here to document my first deal. Because I am based in San Diego and working a full-time position, I plan to pursue a class A property single-family residential from a turnkey provider that can cash flow at least $150 a month. I have reached out to a few and hope to keep you all updated as my journey of building a real estate portfolio progresses! This is so exciting!
Please feel free to reach out with any questions you may have. And here's to giving back to the community that has given so much to me.
Hello Eugene,
Good luck on your investment! My biggest suggestion when investing in turnkey is to make sure you do your research on the provider! Some of these turnkey companies mainly act as "middle men" by simply being an agent. They just farm the MLS looking for homes they think are turnkey. A true turnkey provider will have owned the home and did the renovations on their own. This way you can hold them to their word and their work.
I became interested in real estate investing about six months ago and since then have begun work at a full-time position. The thing that really lit a fire in me to become financially independent though was being disowned by the CEO.
In any case, I'm here to document my first deal. Because I am based in San Diego and working a full-time position, I plan to pursue a class A property single-family residential from a turnkey provider that can cash flow at least $150 a month. I have reached out to a few and hope to keep you all updated as my journey of building a real estate portfolio progresses! This is so exciting!
Please feel free to reach out with any questions you may have. And here's to giving back to the community that has given so much to me.
Hello Eugene,
Good luck on your investment! My biggest suggestion when investing in turnkey is to make sure you do your research on the provider! Some of these turnkey companies mainly act as "middle men" by simply being an agent. They just farm the MLS looking for homes they think are turnkey. A true turnkey provider will have owned the home and did the renovations on their own. This way you can hold them to their word and their work.
Welcome to BP!
I am also looking into turnkey as my first investment. I am active duty military and I am currently do rehab on my primary residence by myself. So I am kind of busy. I want to build a portfolio with multi family homes using BRRRR strategy.
I haven't gotten anywhere with that so for now I am turning to turnkey to put my extra mo way to work.
I'm right here in San Diego too and me and my wife have been successful with buying turnkeys in Atlanta and Birmingham. Not the "A" neighborhoods you're looking for, but better cash flow.
Let me know if you want to meet up or if you have any specific questions and good luck!
@Eugene Lee Welcome to the world of REI. I started investing in turnkey properties four years ago.
What markets are you looking to invest? I know some turnkey companies market as being in A class that cash flow, but that is subjective, and I wouldn't call those A class properties neighborhoods. Be wary of such inflated expectations.
I'm currently looking at Memphis, Houston, Little Rock, Kansas, and Cleveland; although Cleveland and Houston have relatively high tax rates which I find unattractive.
By class A, I suppose it's more of a class of tenant I'm thinking about more so than say, the level of education. The hope is longer leases, better tenants, lower cash flow presently for lower maintenance and lower vacancy translating to higher cash flow over the long run.
@Eugene Lee my team is happy to serve as your "boots on the ground" if you every need our services. I'd be happy to take photos of a property you are considering.
Hey Eugene, you PM'ed me but then never replied back when I responded. Anyway just a heads up, based on your tax comment, Memphis can have city and county taxes depending on where you buy. Also, if you are looking for A class tenants, you might consider talking with @Alex Craig if you decide on Memphis. While I have not purchased anything through him, people I have talked to say he offers higher end properties which draw the tenant class you are looking for.
Good Luck with whatever you and post back on what you decided.
I have been able to significantly narrow down the numbers of providers I would like to engage using two of the following metrics:
1) Class of neighborhood - About half of the reputable turnkey providers that have engaged me seem to deal with B-C range of neighborhood instead of the A-B range that I would like to invest. Well, that was easy!
2) Speaking of others poorly - about 20%-30% of the providers I talked to spoke poorly of either other turnkey providers or other investors! So like, as an investor hearing about how other investors are crazy with wanting slightly higher cash on cash returns turns me off to your business, because in the back of my mind, I'm wondering "Oh are you joking about me right now and the pig you just sold me?" Respect is huge in my mind because respect and trust go hand-in-hand.
The field has gone from about 10 to about 2-3.
In any case, thanks so much to BP because BP has been tremendous in my growth as a real estate investor and as a source of accountability for the providers I would like to engage. Once again, please feel free to shoot me a pm if you have any questions!
@Eugene Lee Cash flow in a class "A" neighborhood....If you can pick up a good deal like that I'd be excited to learn more about it. Keep in mind that in that sort of neighborhood investors many times are looking for an appreciation play. Although I do not invest with the hope of gaining appreciation, getting cash flow in an "A" would be outstanding. Best of luck to you!!!
I'm in Kansas City if that is the area that you are looking to buy properties! I am an agent but equally important I have also worked for Rental Home KC for the last 7 years. We certainly provide the class A clients that you are looking for. We provide the best experience for investors from the beginning by directing you to the areas that will have the greatest return on your investments in the most desirable areas for quick turnaround. If you would like more information please send me a pm for more information.
Hi @Eugene Lee - Since the topic of Memphis came up, I thought I'd throw my two cents out there as a born and raised Memphian.
Lots of properties available in Memphis which will cash flow at least $150 per month (even after a mortgage payment), but if you are set on an A class home be very selective. In Memphis, the neighborhoods can sometimes change character block by block. You cannot really analyse an entire area as one class - one street could be great, while the next street over could have issues. But it works the reverse also - don't write off an entire area as B or C class, because you might miss a wonderful micro area with a great opportunity. Best advice would be to visit and talk to locals to get a sense of where you want to invest.
Hi guys Im from San Diego California but have moved to Cleveland and saw the post on turnkey houses! If you need help im in a great area with high returns and a great team doing great things! Let me know if I can help!! Good Luck! Kevin!!
I recently got into contract for two properties with a turnkey provider in Memphis, TN putting to work slightly less than half of the capital that Id like to put to work in real estate. The properties are in Bartlett and Cordova and should cash flow about 100-150 a month with a 12% set aside for maintenance and capex and 10% for vacancy, both of which are super conservative. I'd be happy to disclose over PM.
Both properties have been inspected and one property had an older roof that the company has agreed to replace for free. That's awesome!! We're looking at an early closing on this one :)
The second property had an older water heater and siding that needs to be replaced or at least repaired. Will keep y'all updated!
I'm looking at some other cities to diversify my investments and also am in the process of vetting other providers to work with in the future. I have a short list of candidates in mind :)
Please fell free to reach out with questions or comments and I look forward to hearing from you all.
I just picked one up in Bartlett, its my first "attached house" although its not a duplex it shares a common wall. We will see how well it rents out. I'm shooting for $1200
Cordova is a safe market as well. What area are you looking in @Eugene Lee?
@James Wachob I'd like to be in those two areas, the B to A- range neighborhoods if you will. I figure that the higher property price buys me higher quality, longer term tenants which would decrease in the vacancy and maintenance exists in the long run. I am definitely open to properties outside of those areas though! Just no Frayser ;)
Cordova has some areas that are county only taxes. This can boost your ROI in a big way. To see which areas are or are not in Memphis city limits you can check the Shelby County Tax assessor's website, or I can look it up for you.
@Eugene Lee congrats on getting them under contract. Now it's time to get them cash flowing! I just bought one in bartlett that I will sell to an investor or a homeowner.
I recently got into contract for two properties with a turnkey provider in Memphis, TN putting to work slightly less than half of the capital that Id like to put to work in real estate. The properties are in Bartlett and Cordova and should cash flow about 100-150 a month with a 12% set aside for maintenance and capex and 10% for vacancy, both of which are super conservative. I'd be happy to disclose over PM.
Both properties have been inspected and one property had an older roof that the company has agreed to replace for free. That's awesome!! We're looking at an early closing on this one :)
The second property had an older water heater and siding that needs to be replaced or at least repaired. Will keep y'all updated!
I'm looking at some other cities to diversify my investments and also am in the process of vetting other providers to work with in the future. I have a short list of candidates in mind :)
Please fell free to reach out with questions or comments and I look forward to hearing from you all.