All Forum Posts by: Mark Shaffar

http://postlets.com/s/1933-w-2nd-st-davenport-ia-52802/13178080

I am planning to be in that very scenario selling a few appreciated turnkeys in Minneapolis and buying in Milwaukee for that should net 18k/yr. 

Originally posted by @Larry Fried:

@Vlad Frenk Hi and welcome to BP!  I think turnkeys can be a great idea, but you do have to be careful about which companies you choose to work with.  I invest in turnkeys out of state for the last few years, and continue to do so.  

 I agree with Larry. I've purchased 4 turnkeys and they've been great investments.

We have a turnkey rental duplex available at 1933 West 2nd st Davenport, IA. This is 2 2 bedroom units.

The price is $100,000

combined rents are $1400 per month with two tenants already placed.

Expenses:

92 Management (8%)

112 Taxes

70 Vacancy

70 maintenance reserve

80 Insurance

40 Water

$936 cash flow= 11.2% Cash ROI

Originally posted by @Trevor Ewen:

@Phillip Joo

People have different approaches, particularly depending on where they are going or what they are doing. In some markets, you can purchase your 'team' with the property (think Turnkey or syndicated deals). There is nothing wrong with this, particularly for hands off investors who lack the time to chase around contractors, lawyers and realtors in cities outside their local area.

Turnkey companies are also good if you are considering investing out of your area. Otherwise going to a REIA meeting in the area you want to invest in is the way to go if you want to handle everything yourself.

Originally posted by @Dmitriy Fomichenko:

Welcome to BP community @Chendra Grandhi It is a great place to meet new friends and learn about various aspects of real estate and more. Here are a few recommendations for you:

Find and connect with other BP members that are in your area: http://www.biggerpockets.com/meet

Set up keyword alerts to be notified of the topics that interest you: http://www.biggerpockets.com/alerts

Read Beginner’s Guide: http://www.biggerpockets.com/real-estate-investing

Check out BP Podcasts: http://www.biggerpockets.com/renewsblog/category/podcast/

If you wish to tag someone in the conversation on the forum, type @ followed by their name and then select that person below. He or she will be notified of being tagged so that the conversation will continue.

Wishing you the best!

 If you are interested in learning more about Indianapolis and Milwaukee you could set up keyword alerts for those words to. That's what I did.

Originally posted by @Jessica H.:

Finished product looks great, we employ a similar strategy in our flips to get them to sell for top dollar and sell immediately.

 Yeah the Dorchester ave house turned out pretty well. Thanks!

10512 S Eggleston, Chicago

4 bed plus 1 in basement

2 Bath plus 1 in basement (we are adding a bath on 2nd floor and basement)

Finished Basement

Brick Cape Cod

Pics:

https://www.dropbox.com/sc/rffv1ygzmdo69p5/AAC2gUMbWUENZhUGAGI92NbGa

Price: $45K (includes our management fees for the project)

Rehab: $95K (We are redeveloping portions of this property)

After Repair Value: $185K (what we estimate it will appraise at)

Projections:

Price: $45K

Rehab: $95K

Resale: $185K

$185K Resale

-$45K

-$95K

-18K Selling Costs (6% Realtor, 4% Buyer's closing costs at resale)

-$3K closing costs (at resale)

-$2K Insurance / Utilities / lawn care

$17k net

Recap: Invest $148K and Net out $19K = 12.8% on the project / annualized = 25%

These are totally a passive investment, we handle 100% of the work.

Additional Notes:

The average list price is this zip code

is skewed for a couple reasons. The areas we invest in some pockets are more rental areas and other areas in the same zip codes are home owner blocks. Therefore the average distress property is trading at 30k and held on to as a rental. Therefore, holds average down. The other factor is we are redeveloping these properties. This particular project, 80-85% all new electrical, all new plumbing with exception of the stack/stink pipe, new hvac(75% new duct work), keeping half the windows, roof layover. In addition, the kitchen will be opened up into a function suburban type feel, bathroom added to the 2nd floor, bathroom and bedroom added in the basement and the basements are finished off tile floor and family room. These projects are high end for the neighborhoods, therefore we get top dollar for them. However, you can see the comparables we sent support similar style houses, with similar beds and baths are trading at that number.

$155k in 2006. It sold for that number without a bathroom in 2nd floor, tile ceilings on the 2nd floor and basement was "Finished" but it wasn't really finished off as a living area like ours.

Our Realtor

sells 250-300 houses per year in these areas. They have set the standard for rehabs and we get top dollar for them. If we do a lesser rehab, buyers look at our property and compare to the high end property. Example: Lower end rehab:150k 4 bed/2 bath…buyer would rather spend $160k on a 3 bed/1.5 bath to have the amenities. 

Example Finished Products we've done in this area:

https://www.redfin.com/IL/Chicago/10508-S-Peoria-St-60643/home/13075337 finished product

https://www.redfin.com/IL/Chicago/8347-S-Dorchester-Ave-60619/home/13221363 finished product

I meant @Nicole Pettis but I hope @Nicole Nadvornik

 you have a great time meeting other like minded Milwaukee investors:)

Sorry I can't make it today but good luck Nicole! I hope to catch the next one.