All Forum Posts by: Steve Donovan

@Mark Koster, great job on your very detailed list of pros and cons! To answer one of your questions, one of the largest risks of turnkey investment is that the property cannot be rented at the level in the marketing proforma's, or that the costs run well in excess of those predicted. Do your diligence and make sure your analysis assumes realistic vacancy and maintenance allowances and any ancillary costs that may be necessary with a property (is the owner responsible for any of the utilities, lawn care and snow removal, etc). I do think your estimate of return potential of 7-10% CoC is low; there are many markets where double digit returns are achieved with high quality units and tenants. Best of luck to you as you expand your existing portfolio!

Hi @Nathan Spangler and welcome to BP! You will find great advice and motivation to grow by spending time in the forums.  I second @Rebecca Knox comments; you should consider hard or private money to fund your future projects and finance out of those loans with longer term bank financing once the project is completed and tenants in place in the case of buy and hold investments.  Many investors use hard money even if they have their own funds to do the deal, as it tends to light a fire under you to get the project completed when you know the interest meter is spinning every day that the project is not completed.  I'm active in Green Bay, Oshkosh and Fond du Lac areas and would be happy to be resource for you in this area if you need one.  Best of luck to you in your investing future!!

This is a great group, with excellent content and active, knowledgeable members.  Any investors in the Appleton and Oshkosh market should plan to attend an upcoming meeting.

Hello @Evan Anthony. Welcome to BP and the Fox River Valley real estate investment community! I'd suggest attending a REIA meeting in Appleton as many of the most active buyers attend these meetings. You can find them here WiscoREIA - Home (click the locations drop down and select Appleton)  I'd be happy to be another resource for you as you get started.  Please add me to your buyers list as well.  I've sent you a connection request and a message with my contact info.  Best of luck as you get started!

Hello @Kody Christensen and welcome to Bigger Pockets.  I'm in the Green Bay area and happy to be a resource or answer any questions you might have. Feel free to reach out and congrats on getting going early in your life!

Hello @Justin Mazza.  I would always recommend using your own analysis before investing in any property.  At minimum, you should discuss the differences in your numbers and their numbers with the turnkey provider.  You will likely find significant differences in vacancy allowances, maintenance and improvement allowances, and assumed P&I payments.  If a very low interest rate and favorable amortization period is assumed in the provider's calculations, ask which lending institution offers the favorable terms and contact them to prequalify.  Just because a rate and term is theoretically available, doesn't mean you will qualify for it.  Also, understand what the stated property tax rate is based on - is it the old, previous to the rehab rate, or the assumed rate based on the now current value?  In areas with high property taxes, this can make a big difference in your returns.  All the best to you in your investing future!!

Sorry, hit send too early!! On the Wisco REIA page, use the location drop down to find the Green Bay affiliate. Best of luck in your investing future!!

Hello @Alisha Boulter I am an investor in Green Bay and would be happy to help with any questions. I would suggest joining the local REIA and the associated Facebook page. There are a number of hard money lenders who I could suggest but I don't feel comfortable doing so in this forum. Be advised however, that these guys will be somewhat hesitant on funding someone new to the business unless it's a really awesome deal. Your best approach may be to partner with someone who has more experience and will give the hard money lenders more confidence in funding the deal.

Hi @Dan P.  I agree with several others that the insurance looks to be high, but to be fair, I'm not familiar with those costs in your area.  Also the purchase price vs monthly rent ratio makes it very unlikely that this could cashflow.  Unless you are really banking on appreciation, which is a risky proposition at this point in the market, I'd look elsewhere.  Best of luck to you in your investing future!

Hi Joe:  I'm located in Green Bay and will be happy to help answer any questions that you may have.  Do you have any properties your are considering at the present time?