All Forum Posts by: Joseph Bui

Hi Danielle, I own 9 doors in the Midwest and have worked with a couple teams that help end to end, so you don't need a different contact for each phase of the process. I'll send you a message so I can knowledge share.

Hi @Daniel Vargas, I've done both. I've purchased turnkey properties, as well as BRRRR style transactions in multiple Midwest markets. They both have their pros and cons and will appeal to different types of people and financial situations. Would be happy to connect and share with you my experience with both.

While real estate investing isn’t 100% passive, it can be pretty close with a good team in place. I’ve done multiple years of investing while having a full time non real estate related job. 

Eventually the rent will go up and you will cash flow. Fow now you need to chip in a few hundred a month which isn't the worst thing considering you put 0 down. Most people are happy to cash flow when they put 20% down.

I'm usually not a proponent of cash flow negative deals (assuming 20% down and calculating putting aside at least 15% for maintenance/vacancy/capex). This is for a couple reasons:

1. Really sucks to lose money every month when you just shelled out a large chunk of money, in this case 200k.

2. What if there is an emergency, personal or with the property? Job loss, burst pipe, etc. If anything like this happens, you are in a really tough situation as you will need to go deeper into your pocket.

3. The main reason people do this is because they believe it will appreciate over time. It will, of course I believe this or else I wouldn't be investing in real estate. However, when? We have no idea. Its a weird market. Nobody can predict if/when. What I do know is there are plenty of other markets in the Midwest (I have 9 doors across Memphis and Detroit) that will cash flow immediately and based on the data I'm seeing, has appreciated more than areas like LA/Seattle/Bay Area in the last 5 years.

You also bring up airbnb which is a viable option to cash flow. Plenty of people do it. However, it suddenly becomes much less passive and with city governments starting to crack down on it, its now a very risky solution long term.

Happy to connect and chat more

While you could put it all in 1 property, you are literally putting all your eggs in 1 basket. I would consider buying multiple properties. I would probably use those funds to do BRRRRs. Its the best way to stretch your capital and scale your portfolio. The key is having a trusted team on the ground that can help you through the process. I'm based in Seattle but have built a 9 door portfolio through turnkey and BRRRRs in the Midwest (Memphis and Detroit) and they all cashflow around 16% Cash on Cash. Happy to connect and walk you through my investments and show you the type of cash flow I'm getting.

Investing out of state can be scary, but having a trusted team in place to help will make the process much easier. I'm based the Seattle area but mainly invest in Midwest markets. I have a great team in place on the ground that handles everything end to end for me.

90k in equity in each is pretty good. Would you be about break even overall if you sold both of them? If so, I would consider that route and redeploying the funds into a truly cash flowing property or a REIT or something.

Hi Raghavendra I'm also based in the Seattle area. Unfortunately many turnkey companies will inflate the estimated rental rate to help drive sales. I usually use rentometer or rentcast.io or Zillow to check estimated rental rates. As for your negative cash flow situation, being in the red 900/month is not a good place to be in, especially considering an emergency can happen at any time. How much equity do you have in these properties?

I have a great insurance contact I would happy to refer you to that has insured all 7 of my properties in Detroit. Will send it over DM.