All Forum Posts by: Taz Zettergren

@Dayana García

I believe it’s too early to sell. Like others have mentioned his is a buy and hold investment, not a buy and sell strategy, and the real value comes from long term ownership. Selling this early wouldn’t maximize the return because the transaction costs, including commissions and other fees, would eat into any gains. The whole point of investing in turnkey real estate is to generate consistent passive income and long term appreciation, and selling too soon undercuts that potential. I’d encourage you to stay the course, let the investment do what it was designed to do, and take advantage of the stability and income it provides over time.

@Abhishek Namani 

It's great that you're looking into rental investing, but based on the numbers you shared, this deal might be a bit tight. With a mortgage payment of $2,500 per month and rent at only $2,000, you'd be operating at a monthly loss before even factoring in maintenance or vacancies. The added HOA fees make the gap even larger.

One thing to consider is whether you’re comfortable covering that shortfall in the short term, banking on appreciation to make the investment worthwhile. If the market is growing rapidly, this could still be a viable move, but you’ll need to be financially prepared to supplement the property each month. Another option is looking at markets where rental income better covers expenses, as some areas offer a stronger rent-to-price ratio, making it easier to break even or generate income sooner.

You might also want to consider older, freshly renovated homes that are closer to the median home price. These properties tend to have stronger demand, and the rents are often more favorable. Unlike new construction, where building costs keep prices high, a fully updated existing home can often provide better value and return on investment.

It would be helpful to run a full analysis, factoring in property taxes, insurance, maintenance, and potential vacancies, to see if this deal truly aligns with your long-term goals. If you want help evaluating your options, let me know!

@Hailey Peterson 

Totally understand the analysis paralysis, your first investment is a big step, and both options have their pros and cons.

Since you’re in Nashville, investing locally in Chattanooga or Nashville could be a great way to get started. Being nearby makes it much easier to oversee the property, build relationships with your property manager or contractors, and gain hands-on experience before expanding elsewhere. It also allows you to enter the market sooner without needing as much capital upfront.

On the other hand, if your long-term goal is to build a portfolio in Washington and you’re comfortable with lower cash flow (or even breaking even) in exchange for appreciation, then making that initial investment there could align better with your future plans. The key is making sure you can comfortably hold the property without relying on immediate returns.

A good middle ground might be to start with a rental in Tennessee to get experience under your belt, then use the equity and cash flow to help fund a Washington purchase down the road. Real estate is a long game, and getting started sooner rather than waiting for the perfect deal is often the best move.

Whichever route you take, you’ll learn a ton along the way. Best of luck, and feel free to reach out if you ever want to talk through things further!

@Anthony Stahurski 

Great to see you taking the first steps into real estate investing! If you can, I'd highly recommend trying to find a multi-unit property with your VA loan—duplex, triplex, or even a fourplex. That way, you can live in one unit while renting out the others to help cover your mortgage. If multi-units are tough to find, another great option is buying a single-family home and renting out the extra rooms to friends or other tenants. That's actually what I did before I got married, and it worked out really well.

Either way, house hacking is one of the best ways to get started in real estate while keeping your living expenses low. Make sure to run conservative numbers so you're prepared for things like maintenance, vacancies, and unexpected costs. The VA loan is a powerful tool, so take full advantage of it!

@Steven Le 

You’re absolutely right to dig into both the opportunities and risks in Memphis. One key point that often gets overlooked is that while the city itself has seen some population decline, the greater Memphis metro area is actually growing. That’s why it is crucial to focus on the suburbs, where demand remains strong and long-term stability is more predictable.

The best strategy is to stay close to the median home price in these suburban areas. That’s where you’ll find the widest pool of both renters and future buyers, ensuring consistent demand. Memphis is a cash flow-friendly market, but buying in the right locations means you’re not just chasing returns today, you’re setting yourself up for strong performance over the next decade and beyond.

Would love to hear more about your investment goals and help point you in the right direction if Memphis ends up being the right fit for you. Let me know what you're looking for in a market!

@Sas Sel 

I would recommend looking into Memphis, Little Rock, Oklahoma City, and Tulsa because these cities offer a great balance of affordability, strong rental demand, and landlord-friendly laws. They are all markets where we actively operate and see high investor interest.

Finding properties that meet the one percent rule has become more difficult, and those that do are often in areas with a very high percentage of rentals. These neighborhoods typically experience more frequent turnover and increased maintenance costs. Investors who prioritize long-term stability tend to focus on homes in the median price range. Although these properties usually have a rent-to-price ratio closer to zero point seven percent, they provide more consistency in tenant quality, property appreciation, and rent growth over time.

Florida and Texas both have higher insurance and property tax costs, which can reduce overall returns. In contrast, these other markets offer more manageable expenses. A well-renovated home with strong management can create a steady and passive income stream, even if the initial return is slightly lower than in riskier areas. If you would like to compare these markets to what you have done in Florida, I would be happy to go over the details with you.

@Cameron Porter 

I’d say it really depends on the situation. If the property was recently renovated and the resident was just placed at market rent, then it’s reasonable for the price to reflect that stability. In that case, you're getting a turnkey investment with immediate income, which can be appealing to a lot of investors.

However, if the resident has been there for years and the rent is below market, that’s a different story. In that case, I’d definitely ask for the rent ledger, maintenance history, and, of course, when the lease ends. If the lease is expiring soon, you have an opportunity to adjust to market rent. But if there’s a long-term lease in place at an under-market rate, that would impact the value and should be factored into the price.

It really comes down to whether the existing lease terms align with your investment goals.

@Tona Sanchez

Take your time and do plenty of research before making your first investment—choosing the right market and property is key. The cities you’re looking at have solid rental demand, but I’d also recommend considering markets like Little Rock or Memphis. These areas offer strong affordability, steady appreciation, and consistent demand from both renters and owner-occupants, which helps with long-term stability and resale potential.

One thing to consider is putting at least 25% down. With 20% down, not all of your money is actually going toward the down payment—you’re paying additional fees for the privilege of putting less money down, which impacts your overall return. A slightly larger down payment not only lowers your loan amount and monthly payment but also gets you access to better financing terms.

It’s great that you’re focused on securing a positive return, even if it starts small. That way, as rents grow over time, your investment only improves. Wishing you the best on your journey! 

@Melanja K Jones 

I appreciate you sharing your experience, and I’m sorry to hear how challenging it has been. A difficult resident situation can happen to anyone, but the structure of how an investment is managed plays a big role in how those situations are handled.

Many turnkey providers operate as a middleman, referring investors to third-party property managers without direct oversight. This can create a disconnect when issues arise since the company that sold the property isn’t responsible for its long-term success.

The alternative is working with a company that owns the entire process from acquisition and renovation to leasing and management. When everything is handled under one roof, there’s a higher level of accountability because the same company is responsible for every stage of the investment.

I hope this perspective helps others who are researching different turnkey models. Feel free to reach out if you'd like to explore that model further.

@Daniel Jodrey

It sounds like you’ve put a lot of thought into this, and you’re in a great position to take that first step. Given your goals, I’d say house hacking a multi-family is your best bang for your buck. It lets you live for free (or close to it) while building equity and learning the ropes of being a landlord firsthand and after you've been in it a year you could rent out your space and go back to living with your family member if you wanted too. That experience will be invaluable as you scale.

Once you’ve stabilized that, leveraging your hospitality background into an Airbnb or mid-term rental could be a great next move if that’s something you’re passionate about. STRs take more hands-on management, but they can be highly profitable when done right.

Down the road, if you’re looking for something more passive and stable, out of state investing especially in the Mid-South where price points and cash flow are more favorable, could be a great addition to your portfolio. But based on your post, I think a more hands-on approach would be a better fit for you to start.