All Forum Posts by: Jeff Roth

Hi Anthony in El Cajon, CA-

Congratulations on being an agent and already investing in San Diego.

You like cash flow and wonder where to invest out-of-state.

There are many markets in Michigan that offer both cash flow and appreciation.

We partner with the best property managers in each of these areas to provide the best ownership and tenant experience, as well as, managing for strong ROI with in house maintenance teams.

To Your Success!

Hi Antonio-

Great question! You ask if you should buy "turnkey" investment properties as a new investor?

You say you have gotten mixed reviews on this idea up to this point.

I agree some investors like "turnkey" properties to invest in.

Personally, I think you should develop the team and basics to be able to find and create your own versions of "turnkey" properties in areas you are interested in. That way, If you know how to develop the team locally and have basic deal analysis understanding you can replicate the model where there are opportunities and not just where someone decided to offer "turnkey" properties.

To Your Success!

Hi Steven in Calgary, Alberta-

Great question! You are a new investor and will be investing out-of-state.

You are looking at "turnkey" properties in B and C class areas and light value-add in C class areas. You say you will be using a property manager.

To do this well, you really need to have an excellent team that you trust on the ground. Additionally I would also recommend you start with a duplex so you always have a rent check coming in hopefully. I like the light value-add option to increase the property value and rents.

One market in Michigan that is ideal for this is Lansing, MI but there are others here and we have excellent property manger partners in each of those markets.

To Your Success!

Hi Luca in Costa Mesa, CA-

You have an investment property with equity in Michigan and wonder the best way to finance 20K in renovations to improve property value and cashflow.

I would look at a Home Equity Line of Credit and the University of Michigan Credit Union did offer this on a single investment property.

The next best option is a cash-out refinance and you can do this with a DSCR (Debt Service Coverage Ratio) loan using the income from the property to qualify. There is a local lender I can refer you to.

Both options are fairly quick with reasonable terms.

To Your Success!

Hi Debra in Bronxville, NY

Great question! You ask if the window to invest in real estate has passed or closed for good because of potentially declining population, weather related disasters, and the cost of borrowing/maintenance and ownership?

There will always be bad news and there always was bad news when making an investment decision throughout time.

As long as the property cashflows when you buy it, inflation will make sure it cashflows in the future if your debt is fixed.

There are still cash flowing markets in the country like where I serve in Michigan.

The best time to buy was yesterday. The second best time is today.

Top Your Success!

Hi Joe in San Antonio-

Great question. Is networking the best use of a real estate investors time?

I do believe networking can be beneficial. However, like you, I find other things to be more productive to generating a network that supports lead generation and deal flow.

1. Sharing content that attracts people interested in the real estate investing and working with me.

2. While actively working with the people that want to work with me, I am staying current with the market conditions and connecting with the other professionals I need to do more deals which organically builds my network.

3. I send business to these other professionals and as result they send business to me.

This creates a virtuous cycle and more deals get done and more people added to the network.

This is what I have found to be the most productive way to network-but that is me personally.

To Your Success!

Hi Vishal in Columbus, Ohio-

You are a newer real estate investor and wonder with all this "uncertainty" if this is the best time to be investing in real estate or to be cautious or simply not invest at all at the moment.

Personally, I think this is a great time to invest especially in the Midwest like Ohio and Michigan.

These markets are not seeing the price corrections like other markets and have rent growth.

I have seen investor interest very strong this year in my practice and I think people see real estate as less volatile than stocks or crypto.

Investment real estate adjusts with inflation as property values and rents go up while debt is fixed and goes down with fantastic tax benefits that other assets also do not have.

To Your Success!

Hi Sam-

You are asking if dishwashers are necessary in your rental properties because you have experienced problems with dishwashers leaking and causing damage.

Personally, if a rental property I bought had a dishwasher, I would leave it but if you see them as a problem then the fewer moving parts the better usually.

I do not think it will impact your ability to rent the place significantly.

To Your Success!

Hi Justin from Detroit, Michigan-

Congratulations on starting your real estate investing career by asking where you can find real estate professionals who are willing to teach you what they know and be your mentor.

First, I think it is important you educate yourself to know what questions to ask and to know, in general, what a reasonable response looks like. Basically, you want to know enough to be dangerous. :)

I absolutely agree with you that finding an experienced mentor willing to teach you is the way to go. It is like the book Who, Not How. This could be any experienced investor but an investor friendly Realtor who is also an investor themselves with a teacher's heart goes a long way.

To Your Success

Hi Niranjan in San Jose, California-

Congratulations on being ready to make your first investment!

You are asking about a remote strategy for buy and hold investing and thinking about companies that offer "turnkey" deals to avoid making mistakes on your first investment as your market in California is too expensive.

You are not the only person starting out in an expensive market looking to invest out-of-state.

While there is nothing wrong with buying "turnkey" investments that a company has packaged, you can do the same thing while being more flexible in the deals you pursue with the strategy of finding an investment friendly Realtor who is an investor themselves and an excellent local property manager in the areas you are interested in.

You can find these people through Facebook investor groups for the areas, local real estate investor groups in the area, agents who frequently list investment property in the area, and this forum on Bigger Pockets.

There are several markets in Michigan that will give you strong cashflow with appreciation.

To Your Success!