All Forum Posts by: Zach Lemaster

@Arjun S.

We appreciate the mention & confidence.  We are always here to assist however we can and answer questions.

Here are some great BP resources to run through as well.

https://www.biggerpockets.com/users/ZacharyCole/references

https://www.biggerpockets.com/forums/92/topics/518583-feedback-on-renttoretirement-and-zach-lemaster

https://www.biggerpockets.com/forums/92/topics/765347-rent-to-retirement-review

https://www.biggerpockets.com/forums/850/topics/895660-my-first-investment-property-an-out-of-state-deal

https://www.biggerpockets.com/co/RentToRetirement

@Max Sack

I will let the investors speak about their experiences as well, but I'll throw in my two cents.

Have you checked out the FAQ page on our site?  This question is answered in great detail there along with many other questions as well.

You are correct that capex can be a large expense that can eat up cash flow.  Our requirement is that there is significant life left in all major systems so you would not anticipate having a capex item within a reasonable period of time owning a rental.  Of course if you are holding a property for many years you need to factor in capex repairs, but you also need to account for rental increases, appreciation, debt reduction, depreciation, etc.  We've found that most of our clients hold properties between 3-5 years, and then choose to sell them as they've built up enough equity to 1031 into other investments to expand & scale their portfolio.  If you are holding for this amount of time you will likely not have any capex, and we would not expect you to therefore we do not factor that in a typical holding period.  You always need to run your own numbers based on what your goals are, and anticipated holding period.  This is why you simply cannot have standard numbers in terms of what you run for vac, mait, capex, etc.  Each property, market, disposition, etc. could be quite different.  With our TK properties we base #s off of what we typically see with the average client, and past deals.  It is also important to keep in mind that we have new construction where every system is brand new, and in some select markets there are system warranties that could extend from 5 years to 20 years.  So lots to go into when considering this aspect of evaluating rentals, and what the best choice is for you.  Hope this helps some.

@Nicholas Aumua

Here are some other threads I think will help answer your question:

https://www.biggerpockets.com/users/ZacharyCole/references

https://www.biggerpockets.com/forums/92/topics/518583-feedback-on-renttoretirement-and-zach-lemaster

https://www.biggerpockets.com/forums/92/topics/765347-rent-to-retirement-review

https://www.biggerpockets.com/forums/850/topics/895660-my-first-investment-property-an-out-of-state-deal

https://www.biggerpockets.com/co/RentToRetirement

https://www.biggerpockets.com/forums/92/topics/929410-rent-to-retirement-updates?highlight_post=5508807&page=1#p5508807

https://www.biggerpockets.com/forums/92/topics/893621-rent-to-retirement-review?highlight_post=5222888&page=1#p5222888

https://www.biggerpockets.com/forums/311/topics/915728-experience-with-rent-to-retirement-turnkey?page=1#p5345200

https://www.biggerpockets.com/forums/92/topics/808479-rent-to-retirement-experiences

https://www.biggerpockets.com/forums/67/topics/952977-turnkey-in-indianapolis-through-rtr-case-study

https://www.biggerpockets.com/forums/12/topics/533693-anyone-worked-with-renttoretirement-turnkey

https://www.biggerpockets.com/forums/92/topics/581730-rent-to-retirement-zach

https://www.biggerpockets.com/forums/48/topics/874096-reviews-on-r2r-and-nch?page=1&utm_source=Iterable&utm_medium=email&utm_campaign=Transactional:%20topic_notification&utm_content=Transactional#p5123754

https://www.biggerpockets.com/forums/311/topics/883772-turnkey-investing-renttoretirement-feedback-reviews?highlight_post=5171720&page=1#p5171720

https://www.biggerpockets.com/forums/92/topics/950188-rent-to-retirement?page=1&utm_source=Iterable&utm_medium=email&utm_campaign=Transactional:%20topic_notification&utm_content=Transactional#p5535505

https://www.biggerpockets.com/users/ZacharyCole/references

@Patrick Bavaro

Great to hear!  We actually had 7 appraisals come back today all at $320k to $330k.  Scott or Eric can send you copies of those if you would like to see them.  Just let us know!  ; )

@Patrick Bavaro

Great feedback.  Please keep in mind your initial appraisal is just for the construction loan part based on vacant land and build specs.  It's not uncommon for these to come back exactly at the purchase price.  The value upon build completion should be much higher.  We've seen many of these appraisals in the $300k to $330k range upon completion.  That is based on today's valuation.  We fully expect the values to increase as well in the future as the market continues to have high demand and increase. 

Outstanding @Joel Santana!  Congratulations on getting this first investment under your belt!  The first one is always the most challenging.  We look forward to working with you on many more to follow as you scale your portfolio!

@Scott Allen

Here are some other threads with discussions similar to your question that might be helpful to read.  Let me know if I can be of any assistance to you.

https://www.biggerpockets.com/users/ZacharyCole/references

https://www.biggerpockets.com/forums/92/topics/518583-feedback-on-renttoretirement-and-zach-lemaster

https://www.biggerpockets.com/forums/92/topics/765347-rent-to-retirement-review

https://www.biggerpockets.com/forums/850/topics/895660-my-first-investment-property-an-out-of-state-deal

https://www.biggerpockets.com/co/RentToRetirement

https://www.biggerpockets.com/forums/92/topics/929410-rent-to-retirement-updates?highlight_post=5508807&page=1#p5508807

https://www.biggerpockets.com/forums/92/topics/893621-rent-to-retirement-review?

@Patrick Bavaro

Thanks for the feedback Patrick!  Yes, we all wish lenders moved at a quicker speed as they are the bottleneck in the process, and hold us up as well.  With the construction to perm loan there are simply not many lenders that offer that loan product, especially at favorable terms.  It's a great product, but we are at the mercy of working with the banks that offer those loans & their internal timeline.  Hopefully this will stay on track.  We look forward to working with you on many future projects as well!

@Levi Hall

Thanks for sharing Levi!  Glad to hear these have been well performing assets that have also appreciated well to 1031 into more deals moving forward! 

We look forward to working with you on many future projects!

@Brad Johnson

Thanks for the interest!  I've found that many investors use the TK approach to build a part of their overall portfolio. TK is an excellent way to break into a market that you are unfamiliar with, or not local to.  You can establish a great team to have a good starting point in a market to then go on to take a more active role in a location if that is what you interested in doing.  We also have many investors that have no interest in being an active investor & rely on this TK approach to easily scale their portfolio over time.  Scalability is the name of the game in building substantial, sustainable cash flow over time.  I would recommend speaking with @Riley Schaefer @Eric Nguyen @George Odisho @Brooke Andrea who have all invested in at least 10 to 20 doors via the TK route to see what their strategy & experience has been.  I am here to answer any additional questions you may have!  Best way to see if this strategy will work for you long term is to gain firsthand knowledge with some investments, then see if this is the right approach to scale long term.

Here are some other resources to explore who have some more seasoned TK investors talking about their experiences:

https://www.biggerpockets.com/users/ZacharyCole/references

https://www.biggerpockets.com/forums/92/topics/518583-feedback-on-renttoretirement-and-zach-lemaster

https://www.biggerpockets.com/forums/92/topics/765347-rent-to-retirement-review

https://www.biggerpockets.com/forums/850/topics/895660-my-first-investment-property-an-out-of-state-deal

https://www.biggerpockets.com/co/RentToRetirement