All Forum Posts by: Adam Meese

Thanks @Account Closed for the link, this is interesting stuff.  Sounds like a good way to diversify the RE portfolio if not the holy grail. 

Thank you @Tom Ott.  I've heard good things of Ohio an have friends there and I'm going to keep doing my research.

Hi @Cailyn Aune, I had similar questions to you. The last post was 11 months ago....what did you decide and how are things going?

Thabk you both @Patrick Anibaldi and @Amy Kendall

thanks @Patrick Anibaldi! Where are you investing?

thanks @Matt R.

I’m currently looking at purchasing my first rental unit near Dayton, OH from a Turnkey provider. I work full time, have a family with small kids and I’m located in Salt Lake City, Utah where Ican’t find cash flowing properties, much less in my price range (~70K all in financed with 20% down payment). I don’t know Ohio very well, much less Dayton which is why I like the TK option and what they provide (i.e. full rehab, intimate knowledge of the area, understanding of home/rent prices etc). The prices offered by one TK that I am looking at are in the $70K range but I’m finding homes (that “appear” well kept) on sale on the same street or right next to it in the $20-40K range.

I’m tempted to just try and venture out on my own and purchase a property at half the cost of the TK property. If I did venture on my own I would not buy a home that required major rehab (I have no idea how to manage a rehab long distance). Even if I spent $10-15K in repairs, new paint etc this would still put me well under what the TK is offering and provide a much better cash on cash return with way better cash flow.

I think it would be best if I partnered up with an investor friendly GC or another BP member in that area…but I’m not sure if this is the best approach or how to go about that. I think the less risky choice is the TK provider, but that also means less cash flow….but I’m not sure how to get started on other options or what other options I have aside from what I mentioned.

Any advice the BP community has is greatly appreciated! Thanks!  

Hi Chris, thanks for sharing. I'm looking into tunrkeys as well and it always bothers me how they calculate their net cash flow. Most companies only assume a 5% vacancy and 5% repairs....which I understand, but things happen. I like you accounted 8% for each one. At what point do you start accounting for Capex? I know it's a turnkey and should be in great condition for many years but things happen and if you don't account for capex now and three years down the road the water heater or something larger happens unexpectedly, how will you pay for it? Factoring 5% capex right now won't affect your cash flow too much which is great, but I'm genuinely interested how you will account for capex later on down the road and how other TK buyers deal with it.

Thanks @Doug McLeod.  I spoke with a gentleman from the company and he was nice and knowledgeable but mentioned it was hard to find any properties under the $100K price range I'm shooting for.  Atlanta still seems like a great market but location is key in that area because traffic is so horrible.  

Hi Doug, I'm looking at the Atlanta area as well and Georgia Residential Partners.  Did you ever get more feedback about the company or invest with them?