All Forum Posts by: Johnny Wolff

Hey Matt - we're in KC.  Happy to chat about neighborhoods and local turnkey operators.  Send me a DM.

@Gitit Hefetz - a couple of thoughts here

1)  Its definitely possible to manage a property remotely if you're willing to do some work.  I manage several properties out of state myself.  It's not difficult if you know what you're doing.

2)  That last sentence is the kicker - it sounds like you're very new to RE investing.  A few options/tools based on the level of effort it will take you

1. A)  Least effort - Spend 5-10 hours calling every property manager in the area.  Vet them hard.  Ask tough questions about lease-up fees, property inspections, if they use good tools.  Go for quality here - don't skimp.  If you do this right the rest will be pretty simple (although you should continue to monitor payments and expenses and ask questions on occasion)
   
2. B)  Medium effort - Use @Hemlane.  It's a property management software by @dana dunford.  Its made for out of state investors to self manage.  Very helpful in your situation.  This will still take a bit of effort - but they have done a nice job of bringing this all together for people just like you

     C)  Most effort - Take it down with free tools.  Here are the tools I'd recommend you use if you go this route

                  i)  For rent price use - https://www.rentrange.com/sdpu... (it costs but its the best there is)

                  ii)  Use transunion smartmove to screen tenants
                  iii) Use Cozy to manage the rental and accept payments

                  iv)  Use a smartlock on the door (Yale or August) so you can allow your contractors in when you need to and                        do showings to potential tenants without being there.

Like everything - property management takes practice, trial and error and the willingness to take risks so you can learn a bit faster.  It's not difficult - if you're committed to continuous improvement, have a little time and have the interest.

@Sayli Mulay - think you need to take all the components of real estate returns into play to evaluate:

Cashflow: $200

Mortgage pay down (rental): $150 (increasing monthly)

Appreciation:  Fed Target for inflation is what I use (2%) = 2% * 150,000 / 12 = $250

Total monthly net worth gain = $600 (for every point of appreciation this increases by $125/month)

@Jayson Greenblatt - My first two investments were turnkeys, and honestly, they worked out great.

Think the BP crew gives turnkeys a bad rap sometimes. But the returns on good turnkey properties are better than bonds, stock or any other asset class in my experience. Yes, you don't get insane, crazy ROI like you'll get if you spend 20 hours a week managing a BRRR - but do you really want to spend 20 hours a week managing a BRRR?

I've BRRRed before - but frankly, I don't have time anymore.  To each there own.  RE is a great asset - regardless of your methodology.

Still important to do your own analysis on the markets, neighborhood, property.  If that's solid then turnkey away my friend :)

@Scott H. - Definitely hard to invest when the rent to price ratio is that nuts and you'd be losing hundreds a month to hold real estate.  I'm originally California so I know that pain - and that's why all my early investments were out of state.

Great areas have a few important things:

1)  Population growth
2)  Job growth
3)  The income per capita growth

Income and people are the building blocks of real estate value.  If any of those pieces are missing the long term housing demand and/or prices won't be well supported.

The key is to find those rare markets that have all 3 but still cashflows - that's the sweet spot.  A few cities that I like right now:

1)  Overland Park, KS (a suburb of KC)
2)  Arlington, TX (a suburb of Dallas)
3)  Round Rock, TX (a suburb of Austin)

I looked at Tampa long and hard a couple years ago and.  What turned me away was articles like this:

-https://www.tampabay.com/news/

-https://www.washingtonpost.com...

Just recommend you look at hurricanes and sea level before investing there.  Not saying its a bad market, just that there is some documented risk.

Coliving is a booming real estate trend - but it's not for everyone.  Learn some practical tips from a coliving operator that will help all real estate investment portfolios perform at a higher level.

@Nam Trang - here are a few things I like to examine:

1)  Google street view.  What do the cars look like?  What does the street look like?

2)  Ask an unbiased local that you trust - you can find one on a local RE investor on Facebook.  

"Would you live in this neighborhood?"  "Would you invest in this neighborhood?"

People are happy to weigh in.  The turnkey company or your RE agent is going to make money off of this transaction.  You should find someone (or more than one person) that won't provide an unbiased opinion.

3)  Trulia - demographic data (crime, schools, poverty level, unemployment %)

4)  Population growth.  The population NEEDS to be growing.  If the population is shrinking that's a very unfavorable sign for the future of your investment.

5)  The income per capita - county, city, zip

@Misty Syts - curious how you came to that list did you use population demographic analytics or do you have personal familiarity?

The triangle in NC stands out as the highest quality option in those states.  A bit more expensive but really like the fundamentals.

@Brian G. - have you completed a local BRRRR previously? Think that's a good place to start.

Like most have said - the BRRRR strategy is really for those that can project manage themselves or have a partner/team in the target market.

1.5% price to rent ratio is a bit concerning as well.  That's rough territory, my friend.  Be careful.

@Cesar Gomez - my first investments were in Texas.  Still, really like the state as a whole.  Very landlord-friendly.  Strong, growing population and economy.