All Forum Posts by: Taz Zettergren

@Ram Reddy WElcome to the forums and congrats on the first post! I don't have any experience in Ohio but have helped hundreds of clients in the southern/middle part of the country, mostly TX, Memphis and Little Rock. Each of these markets are cash flowing positively despite the interest rate environment. I wouldn't get into a negative cash flow situation unless you're in a high growth market but I'd still be weary. 

At those price points I'm sure there's a few turnkey providers who operate in that space. It sounds like you're being patient but definitely take a deep dive on whoever you end up doing business with. I'd recommend it being someone who owns the properties themselves and owns the management company as well that way your interests are mutually aligned.

Best of luck investing! Feel free to reach out if we can be of any assistance

@Ryan Anders It is certainly a tougher market to navigate all around but sitting on the sidelines doesn't get you anywhere close to your goals and there's too many good opportunities out there to not be investing! You're doing the right thing, take your time and ask a lot of questions to see what others are doing. In the environment for a leveraged buyer cash flow can't be the main goal because there's not a ton of it anywhere, unless you're buying in cash. When you own property outright is really when you start to see the cash flow come in so the sooner you start investing in buy/holds the better so you can get there. For a leveraged buyer it's not all about the cash flow, you have to keep in mind that resident is paying all of your expenses for you, paying your mortgage down, while rents will continue to grow as well as your equity over time so the return is coming in a few different ways there. And there's a high probability you'll be able to refinance into a lower rate, growing your cash flow, in the next 3-5 years. 

There's always high demand for median priced homes so if you can find one where the numbers make sense I wouldn't hesitate to flip it. I work with hundreds of clients who buy turnkey properties and a lot of them use that HELOC money on flips to build up cash and then use the cash in their bank for down payments on rental properties.

Feel free to reach out if I can be of any assistance. Best of luck investing! 

@Justin Tomlinson welcome to the forums and congrats on getting started! What database are you using to pull your lists? One thing I've seen successful is pulling lists of out of state owners who have over 50-75% equity in their house. They seem to be some of the highest probability of sellers.

If you ever come across anything in Memphis, TN give me a ring. Best of luck! 

Quote from @Kyle Moreau:

@Taz Zettergren Thank you for reaching out. And I have to agree starting I think will be the hardest part, a lot of fear of the unknown, but hopefully after the first deal it will progress into something great. I'm open to any avenues to advance. But I think it's best if I start near home at first. 

Completely understand, personally I'm hands on myself but there are several avenues out there than can help you do it passively while being kept in the loop. Of course it comes down to the team you're working with but when that's setup and executed properly you're essentially just managing the manager.
I do a lot in Memphis, Little Rock and DFW. Other markets as well just not as much volume so if you do decide to come west some don't hesitate to reach out. I'd be happy to assist. 

@Kyle Moreau welcome to the forums and congrats on the first post! Getting started is the hardest part but once you get going it's much easier, like a flywheel. Are you wanting to do this yourself actively or are you open to partnering with someone to do it passively? Also are you locked in to one market or are you open? 

We are still seeing single family homes pencil even in this current rate environment, in some cases we are having to get creative in order for them to do so but we are still achieving that goal. I've helped hundreds of clients like yourself get started and build a buy/hold portfolio passively here in the southern/middle part of the country. 

Feel free to reach out if I can be of any assistance. Best of luck investing!

@John Paul are you doing it locally or out of state? If you run numbers properly and the flip goes sideways then you should be able to rent it to cover your costs but if the flip goes properly then you can sell it and cash out as intended. You're right the taxes do hurt you but when you start doing these consistently then you'll figure out how to write things off properly and the snowball affect will begin. At that point may want to consider keeping some of these as rentals for other tax write offs as well. 

@Apoorva Modali Memphis/North MS or Little Rock, AR would be great areas for you to invest and you don't have to deal with inclement weather. I've helped clients with hundreds of deals in these markets and they're all still cash flowing positively with the current rates. 

Feel free to reach out if I can be of any assistance. Best of luck investing! 

@John Rass welcome to the forums and congrats on the first post! The first thing I would tell you is be careful on where you're investing, I operate in Memphis and that price point is much higher risk. If you are adamant on staying in that price range I would advise paying cash or putting more money down to reduce your monthly payment. Since the clientele you'll be working with is less desirable it'll be a riskier play if you're leveraging, and like you mentioned you could refi down the line when it's more favorable. 

Feel free to reach out if I can be of any assistance! I've worked with hundred of clients who invest in Memphis and know the market very well. Best of luck! 

@Jeff Bonham please send me the info on your north MS deals

@Justin Brin not at all, just be weary of where you're putting your money. I wouldn't buy anything west of 3rd. North MS will be more expensive but you'll most likely be in better areas.