All Forum Posts by: Taz Zettergren

@Nicolás Eduardo Larach León 

What market are you in or trying to invest in? The 1% rule is attainable, but typically in more challenged areas or on properties that need work. For long-term stability, I usually recommend focusing on median priced homes, since they’re in higher demand areas and reduce vacancy risk.

For a true turnkey approach, in my experience, you can find properties in the Mid-Southern U.S. that hit around 0.7–0.8% rent-to-price ratio and still cash flow positively. Full disclosure, I’m based out of Memphis and work with a turnkey company here and also actively invest personally.

@Nikelyia Waters For someone just starting out, I’d focus on median priced homes in your target market. These tend to be in the highest demand neighborhoods, which helps reduce risk and keeps your properties easier to rent or resell. You might not cash flow as much initially, but the stability and consistency of these areas is really what long term investors are after. For beginners, that reliability is often more valuable than chasing high yield but higher risk deals.

@Sean Sousa 

welcome to BP! I’m not sure Denver has any true turnkey providers in the sense of a company that buys, renovates, rents, sells and manages all under one roof. Most of the larger turnkey operators that do it all tend to focus in more affordable markets where rent to price ratios make sense for out of state investors and there’s more margin to work with. I could be wrong but I don’t think Denver quite falls into that category right now.

What I’d suggest is connecting with some of the larger property managers in Denver. They usually have a pulse on which agents understand investor deals and which neighborhoods make sense for long term rentals. That’ll give you both local knowledge and a good team on the ground from the start.

@Dave Meyer holds some real estate in Denver, he might have a better reference for you. 

@Darius Harper 

The right answer really depends on your personal situation and liquidity. If you’re able to rent out your primary and it cash flows, I’d usually recommend keeping it. Then use a low down payment loan (5–10%) to buy a small multi-family and house hack that’s one of the fastest ways to build experience and equity at the same time. Ideally, you never sell a solid property because long-term cash flow + appreciation is where wealth really compounds.

That said, if you’ve got a significant amount of equity tied up in your primary, it could make sense to liquidate and redeploy into multiple doors so you’re spreading risk and accelerating growth.

A couple of key questions to figure out the best route: What part of town is your current home in? How much equity do you have in it? What’s your current interest rate and monthly payment vs. what you could realistically rent it for?

That’ll give you a much clearer picture of whether it’s smarter to hold and rent, or sell and scale.

@Cesar Coronado

those numbers do look attractive on paper but I’d just encourage you to be careful at that price point. The highs can be very high, but the lows are just as low. Vacancy, turnover, or a couple of rough residents can wipe out cash flow quickly if you’re not sitting on strong reserves, so I’d definitely recommend building a larger cushion than you might think you’ll need.

Section 8 can absolutely be a viable option, but it often comes with trade-offs. You’ll want to understand how the program works in the specific city/county you’re investing in, because administration, payment timelines, and tenant quality can vary a lot depending on the area. Some investors love it, some avoid it altogether—it really depends on your goals and tolerance for variability.

Personally, I’d recommend leaning toward median-priced homes in a given market rather than staying at the extreme low end. Properties closer to the median attract a more stable and consistent resident pool, they hold up better during economic shifts, and they’re easier to sell down the road if you decide to exit. The cheapest deals often look best on a spreadsheet but they’re usually in the most challenged neighborhoods and that can add a lot of risk to your first investment.

If this is your first out-of-state rental, I’d prioritize stability and predictability over chasing the highest cash-on-cash return. You’ll learn plenty just by going through the process and once you’re comfortable with the systems, you can decide if you want to go further up the risk/reward ladder.

@Brendan Harnett 

great questions and you’re right—there isn’t a one-size-fits-all answer here, it really depends on how much time, effort, and energy you want to spend on your first deal. Generally speaking, the more work you’re willing to take on (finding distressed properties, overseeing renovations, managing tenants, etc.), the higher the potential return—but that also comes with higher risk and a steeper learning curve. The trade-off is whether that’s worth it compared to your time and lifestyle.

If you’re leaning toward an out-of-state model, I’d suggest working with a company or group that handles everything in-house. There are firms that purchase properties, fully renovate them, place residents, and then continue managing on the backend. That continuity creates a level of accountability since the same team is involved from start to finish. It’s not the only way to invest, but it’s a lower-friction path for a first property if you’re not ready to take on major rehab work yourself.

On your second question—yes, BP has agent referrals, but the key is really to pick the market you want to focus on first. Once you’ve identified the market, you can connect with investor-friendly agents or turnkey operators there.

For benchmarks, I’d be cautious about chasing the 1% rule. In today’s environment, it’s rare in many stable markets. Instead, I’d focus on median-priced single-family homes. These tend to have the most consistent demand, both from renters and eventual owner-occupants. They also tend to weather economic turbulence better than properties at the high or low ends of the spectrum.

On financing, a HELOC can be a great tool, but in today's rate environment it doesn't always make sense for a purely passive rental. Where it really shines is if you're buying distressed, adding value through renovations, and then refinancing. For a buy-and-hold turnkey-type purchase, traditional financing is usually more straightforward.

You’re in a good position with $50–100K to put to work. A $250K home is definitely doable, whether locally or in another market. The most important thing is to decide whether you want to be more hands-on or take a more passive route—that will determine the type of property and market that makes the most sense for you.

Don't hesitate to reach out if you have any questions about either direction passive vs active

@Marlando Christie 

Welcome to the community, Marlando! It’s great to see you taking the first steps toward building your real estate portfolio.

What kind of investor are you hoping to be, more hands-on with flips/BRRRR deals or are you looking for a more passive, long-term approach? And what are your specific goals this year in real estate?

Happy to share some insights and point you in the right direction depending on what you're aiming to accomplish!

@Avani Bhakta Hi Avani, you're definitely not alone! I’ve worked with hundreds of investors from California and other high cost markets who are looking for better cash flow and more investor friendly conditions. Some of the best opportunities I’ve seen are in markets like Memphis, TN, Little Rock, AR, Tulsa and Oklahoma City, OK, and parts of Texas. These areas offer a combination of more affordable property prices, strong rental demand, and landlord friendly regulations. For investors with a budget under $500K, these cities provide a great balance between monthly cash flow and long-term appreciation. Whether you’re interested in single-family homes or small multifamily properties, these markets consistently perform well for out of state buyers. I’d be happy to connect and share more about what I’m seeing work, feel free to shoot me a message anytime.

@Ian Henderson great to see you being intentional with your strategy and asking the right questions upfront.

For that $70–80K in cash, I’d recommend looking into markets like Memphis, TN, Little Rock, AR, and parts of Oklahoma City or Tulsa, OK. These are markets where home prices are well below the national median, yet there’s steady demand for high-quality rental housing, especially in the $150–200K price range.

My advice would be to stay close to median-priced homes in each market. You’ll give up a bit of cash flow compared to ultra-low-priced properties, but the upside is huge: better residents, fewer headaches, and stronger long-term returns through appreciation and management stability. That’s the sweet spot where performance and predictability align.

If you're going BRRRR or even just planning to hold, these markets are turnkey-friendly too, good local teams and infrastructure already in place.

Happy to share more if you’re digging into any of these spots!

@Anthony Hilliard you're in a really strong position here. First off, great job building that equity and thinking strategically about your next move.

Your path forward really depends on how much time and effort you're looking to put into your investing.

If you're leaning toward a more passive route, turnkey rentals can be a phenomenal option, especially if you're working with the right company that owns the entire process from acquisition to rehab to management. It's a great way to build long-term wealth with less day to day involvement and fewer moving parts.

If you're open to being more hands on, the BRRRR strategy can offer strong upside, but it also comes with more risk and moving pieces. You'll need to be comfortable sourcing deals, managing contractors, overseeing renovations, and navigating the refinance process. It can definitely pay off, but it requires more time and energy, especially early on.

Turning your current home into a rental is also a smart move. You've already built in some solid cash flow potential, and using an FHA loan to purchase your next primary is a strong strategy. That said, I totally get it, moving isn't fun!

Overall, you're in a great spot. It just comes down to how involved you want to be as you build out your portfolio. You’ve got options, and they all lead toward your long term goal of owning quality rentals.

Let me know how it goes, happy to share more thoughts if helpful.