All Forum Posts by: Taz Zettergren

@Lesley Whitley cash flow is still there it's just fewer and farther in between. Since these prices have risen so quickly the rents haven't had time to catch up because they're a lagging indicator so it makes the numbers tighter. But if you find the right company that is able to keep that same resident in the house for an extended period of time and increase the rents it will help minimize cost and increase your COC over time. Are you looking at turnkey or doing it yourself? I don't have any experience in the Ohio markets but I do in the southern/middle part of the country.

@Sam Abraham welcome to BP and congratulations on jumping right in! Turnkey might be a great option for you and it alleviates most of the risk if you choose the right company to work with. I would definitely do lot's of due diligence as lots of people call themselves turnkey nowadays. In my eyes a true turnkey provider purchases the property themselves, does their own renovation and then manages that property for you on the back end. Essentially being a one stop shop handling everything in house rather than referring you to other companies. This way the experience is handled in house and you can hold that provider accountable through the longevity of the investment. 

@Jaime Osuna welcome to BP and congrats on the first post! Turnkey would be a great option for you if you don't have the time, effort, money to spend in the industry and if you have the right provider it can alleviate the risk for you. I would recommend a company that buys their own properties, has a renovation process in place and owns their own property management company. That way your experience is tied directly to the provider and you can hold them accountable. There are a couple providers out of Memphis and one of them operates in 12 different markets in the southern/middle part of the country. Best of luck! Feel free to reach out if I can be of any assistance 

@Les Williams welcome to BP glad to have you. I've had some experience in the Bham/Tuscaloosa markets as well as Memphis and Little Rock. Feel free to pm me if you have any questions 

@Austin Charlton With interest rates as low as they are I would definitely consider getting a loan on at least 1 property. While inflation continues to rise you'll have the loan locked in and a resident paying off the note for you while the value of the house continues to rise (if you're in a solid area). 

I don't have any experience in Maryland or Illinois but we have had great success in Memphis and Alabama. Best of luck! 

@Marcus Auerbach very well said. I couldn't agree with you more. For Texas I don't think the power grid should be that big of a concern. As I'm sure you know it's still the #1 market Californians are moving too but the cash flow will be lower since the taxes are higher. It's a double edged sword with the appreciation but I find it comparable to an older California market before appreciation fully took over. 

If Memphis isn't of interest to you there are several markets in the Midwest that may be good options. Oklahoma City, Tulsa, St Louis I'm sure Kansas or Nebraska has some as well. Good luck with the search and let us know if we can help! 

@Olivia Beaucher congrats on the first post and taking action! I would definitely dig deeper into the areas you're investing in and what your risk tolerance really is. In today's market, properties that are 100k were most likely 50-60k properties 3-5 years ago. In these lower priced pockets it's typically going to be a more rental dominant type area which will most likely bring more risk to the table. Now the return may be greater if everything works outs but the odds of residents not paying on time or at all does increase.

@Adrian Rae It all comes down to what you're wanting to do long term. Also how much time, effort and money you are looking to spend as you go through the learning process. There are turnkey providers that do high level renovations and even manage their own properties so the investors experience is handled all through one company. Now I understand your way of thinking. You may save some money if you were to do it yourself but you're trading your time and the risk of the unknown. With a turnkey you can scale quickly while the entire process is handled for you. If you do chose to go the turnkey route I would definitely dig deep into their processes with renovations and property management. 

@Gijs Van Kerckhoven REI Nation has tons of educational information on their website/Facebook page. If you are looking at financing options there are a couple non-qm lenders out there that may be able to assist.

@Account Closed tough to say, it depends on how you're purchasing, how active/passive you are etc. I know purchasing through a turnkey provider it might be more of a break even play based on year 1 rents. The main thing is finding someone or a company you can trust and that has all their i's dotted and t's crossed. Someone that mitigates risk for you through deferred maintenance and an extended average length of stay with their residents.