All Forum Posts by: Vika Bha

@Tom Ott read the articles, thanks for the advice. 

@Larry Fried, I did look into crowdfunding websites, downside is the lack of tax benefits. You invested in turnkeys for 5 years, has it overall been working well? Is there anything in particular you definitely look for? stay away from?

@AJ Singh I absolutely would not be able to self manage due to my day job. My family friend has all her investments locally in Texas, I live in CT so I wouldn't be able to invest where she invests. I'll look into the sites

@Emily Powell after your suggestion, I looked at other properties listed and the mark up is significantly higher for the 5 other properties as well. And you are right, if the homes were foreclosed, they may have paid more money to clear the title (not too familiar with this either). I just don't know how much that would actually be.

@Tom Ott I don't plan on working with any company that says "cash only" for the very reason you described.   Just out of curiosity, if the turnkey provider owns many properties in that same area with the high prices, would it push up the appraised value? And what if one is required to use their lender? they choose the appraiser?

@David Song thanks for the suggestion. I have some investments in stocks already and am seeking real estate for diversification. I am not looking or 100% hands free investment, just something that is relatively reasonable for a person with a day job. Even investing with a turnkey operator takes a good amount of work, finding reputable providers, seeing if the prices make sense, vetting property management, hiring independent inspectors, researching property locations, crime rates, city statistics, visiting the city/neighborhoods, etc. I imagine there must be some investors out there who have day jobs and still invest in real estate successfully. Just curious to see how I can also achieve that.

@Emily Powell Turnkey properties would be most ideal for me. Because of my day job, it would be great to go to one company versus search through listings, find relators, contractors, property management etc etc

I think my hesitation is this. I researched a property being offered by a turnkey company. It was selling for $185K. When I looked up the address, the property was purchased for $10K.  I am no rehab expert but I would imagine a full gut rehab with the connections TK operators have would cost $50-$60K for that particular property.  And I do understand that the TK company is bidding for these deals (as in I probably would not be able to obtain the same property for that low of a price), has an army of people searching and negotiating, spent time building relationships with contractors and property managers and are also dealing with other hassles hence why I pay a premium. I am ok with that premium but $185K? for a property that may have cost $70K total for them? I'm paying $115K premium? Needless to say, I crossed that company off my list. Maybe I am naive and that $115K premium is truly warranted but it just seems steep to me. 

@Brian Simmons A family friend of mine has 19 properties in a very small Texas town and she does well. I was curious to know some other techniques investors use that are out of the norm such as yourself and my family friend. Good to see investing in smaller markets works in certain instances.

@Jaysen Medhurst thanks for the suggestions. I'll look into them. 

@ James Wise

Thanks for that tip, it's definitely something I will consider. I am having a hard time finding decent properties (properties that aren't completely distressed) that would still meet the 1% rule. For instance, I considered Philadelphia since it is drivable distance for me but the neighborhoods in Philly (I am looking for neighborhoods without high crime) where I am looking are about $200K+ but the rent doesn't meet 1%. Since I am interested in long term buy and hold, I feel in 20 years or so, there will inevitably be cap expenditures and if I don't obtain a property that meets 1%, I may not be able to pay all the expenses in the future. Also, some other neighborhoods I thought were safe and decent, the property management companies I would like to manage will not manage in those areas. Thanks for all of the response and @Felipe, I'll reach out to discuss

@ David Song. 

I think your reasoning makes sense. I was planning on buying a turnkey myself but I'm reconsidering as I may lose money when I plan on selling it one day. What is an alternative option for an out of state investor priced out of local markets looking to invest out of state?

I am a newbie and trying to find a market to invest has been very difficult. I believe there may be some general rules such as growing population, job growth, population more than 100,000, crime rates. But, I see other investors who invest in markets where the above factors are not present and they seem to be doing well. What parameters do some of you out there use to find a city/town to invest in locally?

Also, I live in CT so it is very difficult to invest locally when the state is currently "failing". I thought about Boston, MA but the prices are well above my price point of $50-100K or so. 

Out of state investing leads to me either turnkey or buying a property, finding someone to rehab and manage it for me. I have a 9-5 job which keeps me busy during the day. Turnkey doesn't seem to be too great of an option because of the above market sales pice. Going out of state to find a relator, getting rehab done of of state seems like it may be tough since I will have to fly often to check on progress and I won't be able to obtain that much time off from my job.

I am hoping someone out there with much more experience would be able to guide me, especially since I am new to this and still have a lot to learn. Thanks