All Forum Posts by: Layne T.

Hi Diane - I'm in Indianapolis myself and have a killer team for broker/property manager. The PM handles all repairs - no crazy upcharge fees - I do long term buy and hold and love the market.

If you want to do Dallas I can send you someone as well to chat with - I looked at the market earlier this year - yeah property taxes are through the roof there - but it's a good long term appreciation market. It's a tricky place because homes may often end up with foundation issues there due to the soil, so I'd only look for homes there that are within 5 years old (and still do a foundation inspection). First year or two you may not see any cash flow at all until rents go up.

If you're not doing a full-on rehab and worried about general repairs, that's what property managers are for. 

@Diane Tycangco - 
You're going to hear mixed reviews, someone very busy with no time to learn or execute on real estate who did well with a turnkey over time will be happy. Others who purchased 'not so great' properties won't be so happy. Personally, I think turnkey properties are rarely ever worth it from a 'buying 1 or 2' perspective. If you already have your market picked out, a few hours with a good broker/property manager will help you learn sub markets. From there you have much more control and inventory if you buy openly in the market with your broker vs. the limited turnkey properties, which also tend to be in a dumpier neighborhood than usually advertised (i.e. I've often seen turnkey providers saying it's a "B" neighborhood whereas it's more like a B-/C+ neighborhood).

Foundation issues, roof issues, total remodel, been sitting for a year. All leads to probably an unrealistic seller and something you don't want to get involved with. 

Disclaimer - this is without seeing the place, verifying rent numbers, etc. 

@Gil Keren - stay in the Greens!


https://www.google.com/maps/d/viewer?hl=cs&mid=1ZJ6z2HR9cwVpc88QIQhmiRrwMg7-dW0H&ll=39.8657606512519%2C-86.09173798684401&z=11

Hey @Jonathan Taylor - good question these days for many that seem to be in refinance mania, at what point for a modest mortgage (say 100-150k) does it make sense from a general rule of thumb to consider/to offset closing costs and general annoyances in refi's - 3/4 a point? Full point?

 

Thanks - 

Congrats @Roger Hall - look forward to seeing some pictures of the rehab. Does your team work on rehabs for others as well?

@Melinda A. Harleaux - I'm in LA as well and have chosen Indianapolis as well - feel free to reach out to me if you want to discuss more in detail.

In a nutshell:
- Look for markets you either know, have a great team, want to move to yourself one day, AND are solid markets (cities which are not dying, which cash flow, which are known to be stable even during recessions, good landlord laws and will appreciate somewhat). Let's keep it simple and say Atlanta, Dallas, Indianapolis, Tampa.

- What's more important now is the sub-markets within there. How do you pick? Learn from existing investors there and from both of your most important team members (Broker AND Property Manager). The property manager will tell you what rents easy, what are 'good neighborhoods' where you won't have constant eviction problems (even if purchase price is a bit higher), and what 'type' of rentals work best in those areas. A 1br/1bth condo at a great price looks tempting for a rental? Not if someone's moving in and out every year and you have to turn it over. 

- Look up property managers here on BP. Ask for suggestions when you narrow down to one market. Find out how the property manager works with repairs/contractors - do they up charge you? How much?

Your team you need before purchasing:
- Lender
- Agent/Broker
- Property Manager

I like syndications as well, and for someone who doesn't understand or want to understand making repairs long distance, minimize risk (i.e. new roof needed in a few years) directly, it could work, just a different real estate investing strategy.

Good luck!

@Sean McCluskey - call these guys for a pro opinion/2nd opinion on cost, etc.: 

https://www.eaglehomerestorations.com/

Feel free to say I referred you - 

I've got a 3/2 rental which is about 20 years old, where each bathtub has a crack (see above) on the base of the tub. Questions for those who have gone through this:

1 - Is this deep enough where I have to worry about potential water damage to floorboards?

2 - Is a $500 re-glazing job worth it vs. a full $2k replacement job?  How long do you think each is good for?

I don't want to waste money either way, if the re-glazing can last 10 years great, with the cracks it only has a one year warranty though unfortunately. What have you all done in this situation?

Thank you!

I've got a 3/2 rental about 20 years old, where each bathtub has a crack (see above) on the base of the tub. Questions for those who have gone through this:

1 - Is this deep enough where I have to worry about potential water damage to floorboards already? 

2 - Is a $500 re-glazing job worth it vs. a full $2k replacement job? 

I've been reading how even a resurfacing job can crack over the crack with pressure over time, and they are usually only coming with a one year warranty for crack repair. Thoughts?

Thank you!