All Forum Posts by: Scott Sklare

I'm interested in a (remote) turnkey property as a first rental, and did my first analysis on some turnkey properties I came across today. The seller offered some quick financials that looked great at a glance, and all their properties appear to cash flow $200 to $400+ per month. After doing analysis on a couple of properties however, I quickly found that my assumptions didn't match up with the seller's. In digging further, it appears they are using really aggressive estimates on interest rate, PM, vacancy, maintenance, etc. On top of that.... the purchase price is well above what comps are going for by 20% or more. After using more realistic estimates, cash flow in most cases becomes flush or a bit negative. I was disappointed to find such misleading estimates being marketed to newbie RE investors.

What things should someone look out for as a first time investor in turnkey properties?

The Question: 

What's an efficient approach to networking and building a core 4 OOS?  What are some things I can do to make this so I don't need to talk to 100 realtors/contractors/lenders/PM's to find the right one (if possible)?

All advice is appreciated!

The Context:

-Goal is to invest OOS as ATX is too expensive for me

-I've been consuming and learning this business through a 15hr course and just finished Multifamily Millionaire by Brandon so I have a grasp of the fundamentals and can underwrite deals (basic ones).

Hey there -- I'm new to REI. I'm learning about out of state investing. I'm currently going through roofstock academy and am enjoying the course. It's pretty high level on a lot of things, but I'm enjoying the process of analyzing deals.

I've decided for my first property, being potentially 5k+ miles away, I don't want to just use roofstock. I'm interested in working with a realtor that's also an investor in the local areas and have them find me off-market deals.  I'm definitely interested in turnkey -- As I just don't have the experience or passion involved with rehab -- that being said, from a strategy perspective, I do love the idea of growing a wide portfolio of cash cows in the midwest. 

I'm specifically interested in multi-family 2-4 unit rentals and my long term goal is to own 5+ unit apartment buildings. (like 24+ unit buildings) 

What I would love to know from experienced investors is which region you would target first? 

I've contacted investment realtors in the following areas to get insight into markets but would love any recommendations and experience you all may have. 

Here's where I'm looking to buy: 

Max Home Value: $250k 
Property Type: Multi-family (four plex preferred) 

Milwaukee
Detroit
Clevland
Memphis
St. Louis
Kansas City
Pittsburg 

From what I'm learning about and reading about, from a cash flow perspective, these are great investmentment areas. Do you have rental properties in these locations? Which do you feel is the strongest? 

What website or resources do you use to evaluate a good market in a specific territory? For example, how can I pick between Milwaukee and Clevland? What resources can I find online to help me decide on the better market to invest in? 


Also -- If anyone does buy homes on Roofstock, please get in touch with me. It seems really appealing, but not knowing anything about the specific location of the unit is terrifying vs. I feel like communicating with a realtor in the area will hopefully have my best interest at heart. 

If there's any newbie investor discord chats, slack groups, or fb groups -- please send them my way. Looking to get really involved with the community. 

Jonathan

Hello all!

I'm just starting out and wanted some advice on the best first investment given my goals.

I learned the fundamentals (from analyzing deals to financing strategies etc) in a BRRR program but then realized that a traditional BRRR wasn't ideal for me since I really need to replace my paycheck and quit my day job ASAP. I've been considering options like STR vs multifamily etc. and would really like some perspective from others with more experience. I'm based in CA but definitely open to investing in other states.

Thanks a ton!

I've been reading for a few months now on biggerpockets and feel like the beginner posts are starting to be not informative.  Lots of people replying with consider my location here or my location is best I can help you. I feel like people are just selling themselves not giving actual advice.. am I wrong for this?