All Forum Posts by: Jason Pabon

Disclosure: I am an employee at Roofstock

There are plenty of reviews here on BP. Just type in Roofstock in the search bar to review what others are saying. I've also bought two rentals myself using the site so happy to answer any questions you have about the model.

Are you self managing or hiring a property manager? Do you have stable employment or if you lost your job tomorrow, how many months would you survive a $500k mortgage (assuming worst case scenario tenants don't pay)? How much cash are you leaving in reserves in case unexpected expenses come up? Have you driven by this location and determined the market rents? Any room for upside?

These are some of the many questions to think about with any investment. I think it's a great way to get started but the only red flag I see is deploying so much capital into one deal. 

Some people start out with buying several turnkey rentals or they house-hack. Regardless, any action you take is better than no action. Time is on your side!

Hope that helps! I am in the Sacramento area myself if you ever want to network.

You should always buy single family (1-4 units) based on comparable sales. Look for other homes in the area that have the same attributes (bed,bath, sq footage, yr built, etc). 

If you're a short term investor (less than 2 years), probably won't make sense to buy turnkey. 

If you're long term with the intention of accumulating assets and building a portfolio, a turnkey solution provides an easy entry point to get started. Over time, you should see some gain.

Disclosure: I am an employee at Roofstock

@Zachary Beauchesne A turnkey provider is someone who rehabs the home and sells it for retail value. They're essentially flipping and selling it to a buy/hold investor. It's a great way to get started and learn the ropes (passive investing).

There are different levels of "turnkey" and suppliers on Roofstock - just depends on what you're looking for. They all go through a certification process before they're listed.  Make sure you buy single family homes on comparable home sales vs buying based on a cap rate.

Run your numbers, evaluate different sources, and start picking the right strategy for you.

I've bought two rentals through Roofstock and here are the numbers on one of them:

Address: 19520 Pasnow Ave Euclid OH

https://www.zillow.com/homedetails/19520-Pasnow-Ave-Euclid-OH-44119/33624298_zpid/

Price: $52,000
Down payment (20%) + closing costs: $15,000
Rents: $950/mo
Expenses (principal, interest, taxes, insurance, management): $482/mo

Rents (950) - expenses ($482) = $468/mo

I didn't include repairs here since it varies but avg ~$200/mo

I hope this helps!

@Kevin Edwards no issue with rent collection. Since the gov. is playing a direct role, residents are using this towards housing costs. I plan on buying my third rental later this year.

In times like these, quality generally pays off (good school districts, neighborhood quality, etc). Don't always focus on the highest yield or the biggest discount.

@Brandon Coleman

I’d either house hack or buy turnkey homes. Best way to start learning.

Your first step should be to talk to a lender to see if they’d qualify you for a loan.

@Anthony Jasmine

Use this cloudhouse tool and check if you get the same results: https://www.roofstock.com/cloudhouse

@Binod G. just like anything, you have to find time to do the research. There are lots of good resources on BP to help you get started. Turnkey rentals offer a good alternative for someone that wants passive income while having a full time job. 

Just like you, I am also in CA (Oakland) and bought my first two rentals out of state. Happy to be a resource!

@Anthony Liguori - I bought two homes myself through Roofstock and there are plenty of investor reviews here on BP. Feel free to browse the site and let me know if you have questions.

I'm from Oakland, CA and invest in Cleveland and Atlanta. Buy 2 or 3 properties (instead of 5-6) so you can figure out the true costs of owning out of state. Run your own numbers and make sure you're allocating the right reserves for vacancies, cap ex, closing costs, etc.

I'd also recommend finding good 3rd party property managers to work with if you can (esp if you're buying/holding). 

Good luck and keep us posted on how those are doing.