All Forum Posts by: Peter ONeill
Peter ONeill has started 2 posts and replied 6 times.
Post: Turn Key Rental Failure from Rent to Retirement
- Posts 6
- Votes 8
Does anyone have any advice on how to sell a rental property with a renter already inside of it?
Post: Turn Key Rental Failure from Rent to Retirement
- Posts 6
- Votes 8
Quote from @Grant McMillan:
Peter,
Thanks for the details of your situation. RTR is here to assist you however we can, we just need to be made aware of the issues you are experiencing. We reviewed communication and we do not have any notification from you that you are experiencing issues. It's important to communicate with us so we can proactively be involved to assist you with anything you need. We understand Scott has spoken with you this morning already and that you have another call scheduled with him this afternoon.
Just for clarification purposes for everyone else reading this thread. You purchased a new construction property that had a $21,000 incentive on the property. Meaning you had $21,000 that you could use as a price reduction, cash back or rate buy down (or combination of the above). You chose to take the full $21,000 as a price reduction on the home, meaning you acquired it at a discount allowing for immediate equity. The numbers you are referencing on the pro forma shows that $21,000 being applied to rate buy down and a portion as cash back at closing. That was our recommendation of how to apply the $21K incentive. Buying the rate down significantly would have allowed for much better cash flow each month along with more funds in reserve from the cash back.
We did look through the inspection report from when you purchased the home a few months ago, and it appears the builder remedied everything that came up on the inspection report. We do not have any other details about management issues you are experiencing, but we are happy to look into this further with you to see how we can further assist. Scott will cover this on his follow up call with you later.
Again, we are here to help you however we can, but we just need to know about the issues you are experiencing. RTR was not notified about these issues until we saw this post on BP yesterday.
We look forward to working with you to review all details and help build a strategy to set you up for long term success.
-Grant, COO Rent To Retirement
Just got off the phone with Scott, he's great btw.
Yea it seems the first mistake I made was using the $21k incentive to lower the price of the purchase. Without the rate buy down, and getting free PM fees the cash flow was destroyed on the deal. This probably changed things -$500/m for payments and -$150/m for PM.
The second mistake was not speaking with the property managers to verify what I could expect for rent. It came in at $1700 instead of the predicted $1925. My mortgage is $1860. If the rent was as projected it would I would be almost break even after PM fees. This made another -$225/m in lost cash flow.
The third mistake was not knowing the timeline of things that needed to be done. Starting the process there was an onslaught of emails, and of course the loan officers were the ones emailing and calling multiple times a day to close their deals and earn commissions. The Property managers were surprisingly quiet. I signed with RTR on 1/18/25 and I got the rent deposit on 5/23/25.
There's probably a few more smaller things but these are biggest contributing factors. All of them could have been solved by me knowing what to do before starting the process with RTR. Or with more guidance from RTR in the purchasing process.
Working with Scott now, hoping to figure out how to at least stop the cash flow from bleeding out on this deal.
Thanks
Peter
Post: Turn Key Rental Failure from Rent to Retirement
- Posts 6
- Votes 8
Yea I realize that in retrospect, remember this is my first deal. There's easily a dozen things I would have done different/better.
Hoping people can provide some advice on how to move forward and not just call out things I did wrong.
Post: Turn Key Rental Failure from Rent to Retirement
- Posts 6
- Votes 8
Hey Everyone,
Looking for some advice here. I wanted to get into real estate investing the easiest way possible and I figured using rent to retirement would be the simplest solution.
Their projections showed a 17% yield with $789 cash flow for $75k down.
I am over $100,000 cash into the deal and losing money, negative cash flow ~$200 a month.
This is a new construction and so many things needed to be fixed by the property management even though they said everything would be fixed from the inspection report. They refused to provide pictures and said that it's just how it is.
The provided loan company was also terrible to work with. They were super pushy and had very outdated technology. Loan was instantly sold to NewRez which has been pretty good for a loan holder.
Any recommendations? Should I wait for the end the year and hope for rates to drop? Or should I just sell the property and take the loss? Is the better to take the loss in the next calendar year?
I appreciate any advice!
Peter
First time home investor.
After spending months deciding weather or not to go with Flipsystem. Eventually I decided to bite the bullet. My day job is very time consuming and I wanted a way to get into real estate investing that I could do on the side.
Probably naive on my part from listening to sales person, but I explained that I was pressed for time on my day job, and he told me Flipsystem only requires 3-5 hours a week tops. Which is absolutely incorrect. Using this system does not change it from being a full time job.
First off you have about 20 hours of videos before you even begin. Then you have "validate" the deals that were supposed to be pre-validated. The most annoying bit is that this is their biggest selling point, have prevalidated pipeline of deals that you can pick and choose from. But really it's just a random spattering of dilapidated properties that may or may not work.
So you still have to spend the time to run all the comps yourself and validate the property with the construction team.
The most unsatisfying peace is just how unhelpful their team was. I asked a dozen times for someone to just walk me through 1 deal from start to close for a $15k product you would assume that a couple hours of one-on-one time would be included but it's not. If the system is supposed to be so simple, why can't a human walk me through it in a couple of hours.
Anyway, I'll close with the thought that if you're motivated enough to start real estate investing, you're better off with an excel spreadsheet and staying away from Flipsystem.
Post: Lessons Learned: My Experience with The 'Flip System'
- Posts 6
- Votes 8
My experience seconds this.