After speaking with a Turnkey Company a few days ago, I've been anxiously awaiting details and information on available properties. As time passed without any communication from the investment company, I felt a little discouraged and admittedly questioned my whole investment strategy, but to my pleasant surprise, I received three property leads today! Here are basic numbers on the top two that rolled in:
This property is already leased with a tenant and would be cash-flow positive the moment I close. Requires no renovation.
FIRST IMPRESSIONS OF LEAD #1: I'm assuming the tenant is a family with a couple kids. A little cluttered. Basic structure of property looks to be in decent shape. I like the 3 bed/2 bath floor plan, but rent seems low for this square footage. Yard/grass not over-grown. However, this is not the type of property I'm looking for. I want a renovated property with brand new infrastructure (plumbing, electrical, water heater, HVAC, etc.) to better protect me in the long run.
Of the three properties in this first round of leads, this one stands out as the best fit for me. This property is vacant and requires renovation:
FIRST IMPRESSIONS OF LEAD #2: Clearly vacant with boarded up windows. I like the porch and brick. Roof looks a little uneven and might need some work (could be additional costs). Security gate (rough neighborhood?). Two floors (maybe an attic?). Neighboring house in very close proximity.
At this point I'm feeling trigger-happy, I want to put my new investment plan in motion! I'm trying to retire ASAP (I know...not realistic). I immediately do my research on LEAD #2 - LOTS of Google Street View, research on Zip Code, crime stats, Zillow for home value and comp values (I know, not the best), and county tax numbers. LEAD #2 is not the prettiest looking place, especially compared to properties in the Bay Area, but the numbers look good! And $15K in rehab should spruce this property up quite nice. Now, I'm VERY interested, but have a number of questions. Time to follow up ASAP!
-Getting property leads SENT to me directly is a lot easier than having to find them on my own. This is where a Turnkey Company comes in handy and is especially clutch since I don't know the city and its neighborhoods at all.
-I can't expect properties to look anything like homes in the San Francisco Bay Area...especially at the price point I'm looking at.
-Quick, but thorough due diligence is key. Have a checklist prepared and look out for any red flags. At minimum, check: Zip Code stats, Zillow, Trulia, county tax numbers, previous tax assessments, Google Maps (what's around the immediate neighborhood?).