Tips for Getting Your First Remote Rental

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But paying down debt is not aligned with financial freedom. And I think when you guys check out the webinar that we have in there, make sure you listen to the very end, because it’ll be my disclaimer. I think , instead of paying down your mortgage debt, take that money and go invest it. And he can probably go up three or four times the pain dire debt.

But, Hey, look, it’s a start for some people, but we’ll check that out. Simple, passive cashflow.com/keylock. A little personal here. I just have a little bad dream. The other day found myself in the office of the place that I started working as my first employer. Let’s just say, call it a fortune 200 company and.

I think I talk a lot about a lot. It wasn’t a fun place to work. It was very conservative company and things were very high stress there. I had a dream where I did not have a desk and there are a lot of younger people working around there. Maybe I feel like I’m getting old, but I woke up in a cold sweat.

And thankfully I didn’t have to go to that job when I woke up for real.

But anyway, on this podcast, we’re going to be talking with a newer investor who is looking to pick up their first turnkey rental property. Now this person has been in our group for quite a while and took a look@theturnkeyrentalguideatsimplepassivecashflow.com slash turnkey. Wasn’t able to get over the hump.

So joined up with our incubator group and is on the path to getting that first rental property. And you’re going to hear her story right now, but before we do, we are relaunching that incubator program. We started the incubator last year, we ran for five months. It’s a five month program where we have biweekly calls, you’ve got the peer group around you, and we help you out with the role of ethics, who to work with.

We pretty much walk you by the hand to get your first remote rental property. If you want to go through a turnkey provider who will be got, do you want to go do it on your own and get a broker and property manager? We can help you find that person. Learn more by going to simple passive cashflow.com/turnkey and make sure you get on that list so that when we started here this next month, you aren’t left out.

 

The last announcement here. If you’re a high net worth passive investor and using a 401k or self directed IRA, what the heck are you doing? Check out simple, passive castle.com/qrp, which is just another good tool out there, right? It may not be good in your situation, but we’ll check it out. It avoids UDFI and UBIT tax,

which hits you whenever there’s leverage involved in ADL.

Now on this page, once again, it’s simple passive cashflow.com/prp. We’re also going to have webinars on there on self-directed IRAs. You want to turn it Roth. That’s cool too. And the QRP for you to make your own decision. Of course, if you’re not in the foam, you don’t get that personal touch and that coaching environment.

So take whatever you watch on that page with a grain of salt and good luck, but I really suggest you guys join up with our family office Silvana mastermind and get the insider perspective on how to implement all these strategies. But anyway, join your show.

 

Hey, simple passive cashflow listeners. Today, we are going to be talking to a non-accredited investor, trying to get started. I’ve known this person for a couple of years now. She’s actually helped me out with the syndication. E-course. A couple of years ago.  If you guys haven’t seen that, I checked that out, but  she was helping me put this together and she’s been trying to get her portfolio for some turkeys herself.

 

But yeah, Jennifer, why don’t you introduce yourself and tell us how you fell into this world as simple passive cashflow. Hey, Wayne. Thanks for having me. So yeah, I’m a management consultant and early on in my first year of working full time I had discovered pretty early that I wanted to invest in real estate.

 

And I started to just listen to some podcasts, which is where I came across. Simple, passive cashflow, and I really fell in love with the thought of having just a passive income,  to just substitute for eventually my current income. Having gone through a lot of different like trial and errors between.

 

Going for a turnkey property. And then also, just trying to invest locally. I’m currently in the New York area. And I thought that I could get an investment property around the New York or New Jersey area and just going through that and realizing that the cashflow and all of that just wasn’t there.

 

I went back to, turnkeys and just going through a lot of different types of providers. And now I’m just at the state where. I think the market is just so competitive that you’ll eventually have to complete and assign on a property within just a couple of hours.

 

And you’re really only able to, back out of the deal. If something comes up during the. Review process. So this is where I’m staying between, like trying to look for a turnkey property going into maybe a different market. And yeah, I’d love to just hear your thoughts lane.

 

Yeah. So a lot of people that are listening, they’re either just getting started in your shoes. Or they’re older and they maybe have kids our age and they want to maybe give them a little bit insight of what it’s like working as a six-figure person in New York. Is it all sex in the city and dinner parties and,  where John legend shows up in places at all?

 

What’s it really like? How are the hours like yeah. Yeah, that’s a good question because I think that had a lot to do with the reason why I wanted to do this passively because the hours are rough. Like I would say. And my first year I was working a solid, like 80, 90 hours a week.

 

 It’s gotten better over the past few years, but not substantially I’ll what time do you show up? Like you work banker’s hours, like 10:00 AM to 10:00 PM or and so I’ll show up between eight or nine, and then I’ll usually be there to 10 or 11, like what do you y’all do?

 

Like at five, six o’clock do you guys get dinner or yeah, we order food. Yeah it’s nice when there’s like an expense budget and all that stuff, but I think you ended up seeing like your teammates much more than in your family. Yeah. Yeah, crazy. Crazy. So for all that, you get paid about a  little over a hundred grand a year.

 

And talk to us a little bit about the bigger personal finance situation, like you were living on Manhattan for a while, and then you moved back in with parents. Talk to us about that decision process. Yeah. Yeah. So I think with those hours it’s really hard not to live nearby the office, unless of course you’re like traveling.

 

And my first year I thought I would just travel like Monday through Thursday and then just be around, on the weekends. But I think I quickly realized that a lot of my projects were actually local, so I needed to get a place in the city. So I. Previously I was paying, a good amount of money in rent.

 

And I think ever since the pandemic started, , I felt like I should just go home and save that since now we’re all working remotely. Okay. And then what were you paying for rent originally? So I had a deal where it was like 1400 a month. So  it’s considered like pretty good for New York standards?

 

Yes, it was definitely like a closet,  but yeah,  so overall net worth under $200,000 Jennifer here was not born with money, like a lot of us. I think most of us listening, if you even listened to a podcast, I think we could probably safely say that you are not born with money.

 

You’re here to learn and grow your net worth. And I call all us first-generation wealth. Yeah. So  that’s kinda cool. So you decided to move back in with your parents to pocket that money and put it to investments. Which is cool. Those are the hard decisions, right?

 

I think some other people are like, they do that house hacking thing, but I just think that’s a little ghetto, right? Who wants to live with their tenants? It’s with crap. My style.

 

Yeah. Yeah. I considered it going to New Jersey, but even then it just wasn’t really working out the numbers. Oh, I’ve never been to New Jersey, but it just hear it all in all the sitcoms and I want to be in New Jersey.  Okay.  We connected maybe a couple years ago and you started, okay. I got this video here.

 

I’m going to tease you a little bit. This is the Dave Castro best ever. This reminds me of when you were trying to do your first turnkey rental. So if you guys can see on the podcast farm, you have Dave cash or the CrossFit games guy he’s  doing this,  deadlift and he’s struggling with it for like over 30 seconds.

 

 This totally reminds me of your struggle with the turnkeys and I will give it to him, but anyway, take us back to when you first started where did you go down and then maybe some people don’t make the same mistakes that you did. Yes. Yeah. So I would say like the mistakes that I’ve made where I would say the first two years I was just fearful. And I definitely went into analysis paralysis mode. I  analyze so many different markets. Just talk to a lot of different providers. And at the end of it, I just didn’t feel like I could even make a real decision. And I was just like fearful of this like long distance investing.

 

And then I decided to switch up strategies, which ended up stalling more time of Oh, let me just look nearby New York and New Jersey to try to. I dunno, like by fixer-upper and then renting it. I remember that, I think that was like 18 months ago. And I was like, all right.

 

I won’t probably won’t hear about you again. But that’s just how I am as like a mentor.  You guys have to make the mistakes and take the time. Yeah. Yeah. So  I think quickly after that I realized I know nothing about fixing anything up, so I would have to contract everything out and it was just like a project management nightmare.

 

If I really got into it and the numbers aren’t even like attractive, you’re still negative every month. Yeah. But didn’t you see all the bigger pocket bros doing this, that burst strategy. Like it’s easy. Anybody can do it. But that’s what I thought  until I realized it wasn’t yeah.

 

I think you can, I’m surely I think you can, but is it worth your time? You’re not some dude making 30, 40 grand a year. You’re working 80 hours a week. Yeah. Yeah. Even just commuting to New Jersey, I realized just was a little bit too much for me to go and see the properties.

 

I think it’s just like indecision. I think it’s important to come up with a good strategy upfront. And yeah, I think I know lane, like you recently came up with the remote investor incubator and I think having a group of people. To bounce ideas off of and talk to, and all that.

 

I thought that was really helpful too, to kind of cement, the idea is that your thinking and beliefs and just like limiting beliefs and all of that kind of just clarifying and helping Streamlined just it’s just peer group, right? And using peer pressure to your advantage.

 

How many of us smoke cigarettes when you’re in a circle of other people when you’re a teenager? I didn’t do that, but actually for the young people, they don’t understand that. Cause everybody knows cigarettes are bad for you and they don’t want to do that. But we’ll keep with the analogy, but in the incubator group, everybody’s taking a dive into the Lake and going remote and just doing it, doing a little bit of due diligence on the neighborhood, and then just diving in with the right people that we’ve worked with in the past.

 

But let’s go to this this other spreadsheet that you’ve put together here. So you also, or another one of these people, and I usually teach the computer programmers who do this, but. You have amazed me that you’ve put one of these things together yourself. So this is the infamous thing that a lot of people will do when they first get it started, create this big spreadsheet.

 

She have some bunch of formulas and data that they grabbed from God knows where and to figure out which city to invest in. So yeah. Why don’t you walk us through this? How do you use this? Where did you, okay, where did you get the data from for all this stuff? Yeah, I got it from a mix between Google and like the labor statistic, like a government market, sites.

 

And then another city data. Okay. Citi data.com. Yup. Good resource little old data, especially if you’re looking right now, since we’re doing a census right now, but. It’s for those of you guys listening on the podcast, swarm. This is pretty crazy spreadsheet with some conditional formatting that lights up green, certain areas.

 

I don’t know why, but on the left side we had the cities here. Just, this is just probably if I’m hearsay, right? You’re just hearing from other investors. You just put them on. You have 41 markets while these population 2000, 2018. You just manually grab this from the same data source. Okay. And then you figure it out, which is the increasing population areas.

 

Okay. Yup. Yup. Okay. Yeah. It’s like kind of craziest Frederick I guess the green is the first to be like, Oh, you know what? The numbers are looking good. Like you can consider this a good market. Yeah. Super logical. I think it’s great. You want to be looking for places where the population is going up and the ear of the median income is going up in medium house.

 

This is actually. Pretty good data right here. This, if I were to make a new column for you, if you take the average or the medium household income, and then go like 80% of it is usually the general rule of thumb. That’s usually what you want to be looking for as your rental property.

 

One thing that I take exception to this whole spreadsheet is like the markets on the left side, some of them are big. MSA is like Baltimore. And then some are very small, like center point is a sub-market of Birmingham, right? Like Atlanta’s humongous and Houston is huge, humongous, 3 million population right there.

 

It’s you can’t really compare it with a port Charlotte, Florida or little rock Arkansas. Like these are more, you have some tertiary and secondary markets combined on here, but I understand what you’re trying to do, but like Houston, for example, it’s gone up 39% medium household income, but there’s within Houston.

 

There’s probably dozens of.   Harrisburg, Pennsylvania, which is a tertiary market that makes up, in Eastern Pennsylvania. So just keep that in mind, maybe if you were to separate the secondary and tertiary markets and it’d be a little bit better, but, Yeah. I think in the incubator, I noticed a lot of people will do something like this.

 

And I usually have you guys go off on your own and waste your time doing something like this for a couple months. And then somewhere around a week, our fourth call. Cause we do bi-weekly calls. I’m like, all right, perfect. You guys have done your research. No, that was just all a waste of time, but it’s cool.

 

You guys know where to find the data so that when you do get the real data points of actually going and buying properties and you see how it operates, you can refer back to your original hypothesis and kind of correct yourself. So that’s great. You put on crime here. I don’t know. Crime is really subjective.

 

Prime is like block the block, some market to some market and then job growth is good. I like that. Okay. No,  I think once you exactly what you want to do. And then tell me how many hours were you spending on like the first year of the struggle and the second year of the struggle?

 

Like how many hours were you going into this? Oh, man, I’m stuck between talking to. Property managers, turnkey providers, and just trying to do doing analysis and stuff, I would say yeah, definitely like maybe three, four, three to four hours a week, take, give and take a little bit per week.

 

When did you do this? Like on the weekends or on the weekends? Yeah.  When the days were particularly tough, I was just like, I need to do something passive income. Okay. Yeah. I’m not going to lie. Like you are properly. The person who struggled with this, the longest of everyone I’ve seen.

 

Right.

 

 I am amazed that you’ve stuck through this more than six months, but hopefully you  make people feel good at home because there’s sure there’s somebody listening that is just lurking and probably done the same thing. But  as you saw, when you were in the incubator, we pulled you out of this in a couple of months, right?

 

So you don’t waste the time. And that kind of goes to the bigger point, like bigger picture. Like you got to figure out what your highest and best use.  In this two-year period, you got promoted.  We talked to us a little bit about that and I think that really tipped the scales for you where you what became your highest and best use.

 

Yeah. Yeah, definitely. So I think getting promoted  there’s that pay bump. And I think that once you know a little bit. More of what you’re doing. The hours aren’t as terrible. You have some people helping you out and supporting you so you can disperse the work a little bit.

 

So I think over time, the job itself became a little bit more variable,  but yeah, and I think that it was nice because after getting promoted, like. After some time I was able to come back home and save. Just like that additional income that I’m able to save down.

 

So hopefully I can use that to put that to some good use. Yeah. Because right after college you’re making what, like 70, 80 a year or something like that, which is not much in New York, but you were like minion status, which. I think that’s a sad thing.  Like parents don’t remember that time of their career right.

 

Their first five years. So they just have to suck it up.  I saw like a YouTube video of this. They call it the ground, find where  you’re working along hours and then you have to go to the grocery store to pick up your shitty,  lunch or dinner to eat by yourself and it’s raining and it’s cold.

 

And you only get to go home each or make your sandwich and You got to go to sleep. Cause you got to wake up early and go to work again. Nobody teaches that part of life to you, that grind in the beginning. Hopefully you feel like you’re coming up for air now.  They got you off that rookie contract.

 

Oh yeah. Yeah, definitely. It’s a lot nicer and I completely agree. I thought  getting a job was the end all be all. And that was. It knew of happily ever after, but yeah.  Would you say that maybe this you’re not the right person to ask, but do you feel like you’re going to be promoted multiple times?

 

I call this  being red circled, like in certain companies, they kind of circle you as. The chosen one, or someone that’ll push a couple of wrongs. I was never red circled, obviously. That was never special enough. But do you feel like that’s  in the cards for you or? I think that it’s interesting because like my company.

 

 They have like promotion tracks for everyone. So typically you’re promoted every three years. And if you  Excel super quickly then you can do it in two years. And yeah. So it’s almost like preset path. Okay. Okay. Which is great for training monkeys. Cause you assume it a little bit.

 

Yeah. Yeah. Yeah, because so most of my cohorts that buy apartments and Duke, this kind of stuff, we develop a mindset. If they’re still working their day job, they’ve developed a mindset of they hide from promotions in a way, because it takes away from their highest and best use, which is buying these investments.

 

But are you getting that type of feeling? Maybe because you haven’t started really investing in this stuff scene to scene that track launch, but  where’s your head at now? If you can only choose one path, right? Either you go for the promotion, you stay on  that fast pass, or do you think you’re going to just lay low and do the sort of bare minimum?

 

And just invest passively, right? Like how, when I was thinking, why would I want to work 50% harder to get 10% more pay when I could just buy a rental or two and create that passive income for the rest of my life? Yeah. Yeah.  I think I’m definitely with you, eventually just thinking way into the future of potentially starting a family, like later on all that stuff,  that was my initial thought I don’t think I want to be doing this forever. So I totally agree, like passively is what I’m hoping to do. Yeah. But in the meantime, I’m sure that there’s some optimal set point or maybe you have to, kick butt at a few more years or six years to get to that optimal point where you have the ideal management role.

 

Or the highest pay, but at least amount of work for them yeah. Pay or then you can kick it into cruise control. And then while investing passively, I think that’s the mix. Everyone’s a little bit different, but I think you’ll find that. But for now I would still keep working hard at your day job, but we got to fix this three, four hour a week.

 

Passive investing, like to me, if you’re spending more than five or six hours a month, Being a passive investor doing it wrong. Yeah. But, okay. So we went through a bunch of, dead ends with the turnkey stuff. Where are you at now?  Where is the incubator pointing to you? What’s your next three month action plan.

 

Yeah. So I think three month action plan is to come up with, the market that I want. I guess in terms of finding a property, I think I’d like to find a property where I’m able to evaluate the property, given  my shot at analyzing whether it’s a good investment. And then hopefully making the actual purchase.

 

Okay. So that was the Pennsylvania or the York folks we connected you with, right? That’s right. Yeah. I think right now, which is so competitive out there that you really don’t have time to analyze and yeah, you kinda just have to, go with it. And then if there’s anything during the inspection and.

 

You would you’d be able to back out. Yeah. Yeah.  I think that’s, it’s always been like den. I think it will always be like that. If you’re going with turnkey providers that are legit, and this is what makes turnkey providers so hard, because if somebody is a good house, slipper, turnkey provider, they eventually stopped.

 

Doing rental properties for landlords, the rental grade, because landlord grade stuff is lower scope douchey only 50 to a hundred thousand dollars scope. It’s easy for them. So that’s where a lot of rookie start as they get better, they graduate to more higher end properties because that’s where the profit margins are.

 

It’s not like a cheapskate investor like us. Who’s only going to pay 1% rent to value ratio. They can sell it to some emotional buyer and get that nice pop. So the fact that they’re turnkey providers, it’s either they’re newbies or they have the really good marketing and now they upcharge the price of the homes to on sophisticated turnkey buyers.

 

So that’s just how it is. And it’s a little unfortunate because. I try and keep one foot in that world. And it’s hard for me to keep up because the people who are good, they graduate out of it. It’s like college basketball. I don’t know anybody in college basketball because they all the good ones leave.

 

 So York, Pennsylvania has Pennsylvania where they’re close to you, but are you going to go with that one or are you going to just pick a different market? Yeah, I think I’m at the point now where I think I just need to pick a different market. Okay. Cause we had people in the incubator.

 

I know they’re in Cincinnati, Cleveland. I got folks in Jacksonville, Dallas, Texas. You’re not going to cash out there, Huntsville. I don’t think there’s turnkey out there. I got you covered in Birmingham center point. Memphis. I think Memphis is overplayed already, like Memphis personally, but Hey, it’s up to you, right?

 

But I would listen to me cause it’s all relationships, right? Atlanta, Georgia, you can’t cashflow there anymore. I’m not too connected in the Carolinas, so I can’t help you out there, but maybe an incubator, somebody else can Houston, you’re not going to be able to cash flow  for single family there in Chicago, I would not go anywhere near Illinois.

 

Detroit. I would actually recommend Detroit and Gary Indiana, if you like Chicago, go to Gary Indiana. Kansas city, Missouri is getting low, expensive, Indianapolis,  I think a lot of unsophisticated turnkey buyers have been going there for the last several years. So if you like Chicago or Indy, go to Gary Indiana, it’s like the place that people aren’t flocking to.

 

And that’s, what’s making this hard, right? Like every few months cycle by there’s another wave of unsophisticated. Oh, working stiffs, trying to get out of wall street into their first alternative asset, which is typically a turnkey rental. So it ain’t going to get any easier. Competition’s not going to be going down.

 

Yeah. And yeah I totally agree. I think my next step. Going back to your original question lane of the next three months, I feel like it’s just to reconnect with some people in the incubator just to see what specifically  why they chose their market.

 

And maybe if you had to be able to get a property out there too. Yeah. Why recreate the wheel, just use the property manager. She used a broker, just people are nice. So she wants you join up. People help out their own. It’s like a sorority fraternity in a way. It’s like a cult.

 

Actually everybody wears the same bath slippers, but  you’ve got these really neat rules, right? Thumb on median, household income and stuff right here, but, okay. So going back to your personal financial sheet, I want, I meant to just point out a few things. So  student loans, you don’t have student loans.

 

Okay, good. What are you doing for your Roth? 401k, your retirement stuff that everybody says you should be doing. What’s going on there. So I put some into it, for my first two years, but I’m only putting what, I guess my company’s matching. Okay. Like 6% or something like that. Okay. And then, yeah,  my Roth IRA I am maxing that out at  6.5 per year.

 

But I think I was really struggling with this whole real estate thing, because I know you talk about it all the time later about don’t put it in your IRA. Like you could just put it in like a real asset. So yeah, I’m hoping that once. I get this whole ball rolling with them real estate.

 

I’m able to, over the next few years, just start moving things over to hard assets. It’s not like you don’t have liquidity, right? You don’t have to pull the goalie to buy your first rental. You don’t have to pull your retirement, your Roth to buy that first rental you making good money.

 

You making the hard right decisions to live with your parents. I wouldn’t wish that upon anybody, but I think that’s the stuff that’s going to set you up. If you can do that for a few years, pick up a couple of rentals, you’ll be off your way. And then you quote, unquote, pull the goalie stepped in that retirement stuff.

 

Or to me it doesn’t make sense. Where’s your AGI right now? Or it was this year, last year, just under a hundred or. Yeah around them. Okay. And so the cool thing when you’re under a hundred grand is they allow you to take up the $25,000 of passive losses to lower this down to from a hundred down to 75.

 

So  I did this for a couple years, a few years back, When  you can use the passive losses to lower it. Once you go over 150,000, it’s gone from a hundred, 250,000. You’re phased out completely, but this would be like you can’t. When you go into a rental property on that, like a hundred thousand dollar rental property, the depreciation is not going to be that great.

 

One 27 of the building value is probably only equate to like a thousand or a few thousand dollars a year. But this is where like a syndication deal comes in, right? If you invested 40, 50 grand to pick up $25,000 of passive losses, you could use that in that same year to lower your AGI from a hundred to 75.

 

So that would be low-hanging fruit for you. If you wanted to do like a syndication, but yeah for those of you guys who are above 200, $300,000, AGI ropable and 50, that doesn’t apply to you guys. You guys have first world problems, but for those folks who are just starting out under a hundred thousand dollar AGI, that is low-hanging fruit to do for sure.

 

But yeah. Any other questions or any other? No.  I guess last tips of like how to get this ball rolling. I think for you, it’s just  mindset and I’m not really good at this stuff.  I think  you gotta find ways to get yourself moving forward. And I think for you, it’s just like, all right, I need to make a goal to buying a property and next month, and being like, all right you already know how to analyze it, right?

 

If people want to get my analyzer, it’s that simple pass the castro.com/analyzer. It’s free for everybody. You guys can underwrite your own properties. Your incubator students. So once you put it in there, Just put it in the group, send it to me for that final approval and yeah. Put in the offer and moved through to due diligence process, get inspector and let’s get going.

 

 Don’t let it hang you up. Like I think we want to push you forward and give you the confidence that you’re not making a stupid mistake, but I think you just can’t do what you’ve been doing for the last six months. You gotta keep buying. And then also be mindful of how much time you’re spending on this thing.

 

Right? I guess it is goal-setting season this time of year, but there’s one thing I picked up where you have a goal, right? I don’t know, lose 10 pounds or buy five properties or whatever. Now think  just simulate in your head, like, all right, I have to do this thing in the next 30 days.

 

You’re like, Oh, what do I do? And maybe it’s not realistic, but it helps you be like, all right, I got to do this. What would I do? What would I have to give up? What would I have to stop doing to make this goal come true to really make it happen? Maybe not 30 days, but seven days or three days.

 

If I had to lose 10 pounds in five days, what would I do? Maybe that’s not healthy or safe, but what would you do right now? It starts to makes things very clear and focus and all this other extraneous stuff just disappears. And I think that might be a good exercise for you to try out, right?

 

 I tell you, so I have to buy property the next two weeks. First thing that should happen is you get a little twinge up your spine, if you’re like, Oh crap. And that’s good. And then you notice just observe what are the things that you were doing and that you think you would be doing that just go away?

 

Because I don’t have time. I have to buy property and next to it, I have to put an offer next two weeks. And just take note of that, because those are the things that you should stop doing. Got it. And then yeah. Use the peer pressure on your side. Find a couple of people that you can stay accountable to.

 

But maybe you’ve done that, maybe it’s not working for you. Yeah. There were a few people who volunteered to be my peer pressure person from the incubator group. Yeah. And how did you follow through or how did that go? Yeah. Yeah, no, I think the bi-weekly calls. It really help out, but like we just chat, like messenger and all of that stuff.

 

Just having to give updates is helpful. Okay. Yeah, but maybe at the end of the day, maybe buying a rental property, isn’t your thing, right? Maybe it’s just being a straight LP. Passive, right? Yeah.  I used to think a long time ago that  everybody could buy a turnkey rental.

 

 And I was like, yeah, it’s a turnkey rental. Here’s one page document, figure it out. Turnkey. It’s called turnkey for a reason. A monkey can do this and then. A couple of years went by and I started to realize yeah, this isn’t something, not everybody can do.

 

Not everybody can call a property manager to be able to relationship with. Not everybody can work with a broker, not anybody can. I think that the first layer is like, who do you talk to? Cause it’s just a random people. You can’t go on Yelp or some random internet site to figure out who you’re working with.

 

You have to build relationships with other people. Who’ve done it before to get their referrals. And that requires a little bit of like relationship Jim Jitsu. And then I started to realize, yeah, most people cannot do this. Financial independence is not for everybody. And buying turnkeys is a lot harder than doing syndication deals as a passive.

 

And I started to I was like, I was trying to get my wife to do this. And I was like, she’s not an idiot, but I was just like observing. And I was like, yeah, there’s no way she’s going to do this. She just doesn’t have that the want or the aptitude or she doesn’t care to. And I realized, yeah, this buying a turnkey is not as simple as it sounds nor is it that great in my opinion, too.

 

But that’s where kind of the roads lead to eventually being a passive investor in many deals for diversification and scalability. So why not just go there automatically, but I like to see most investors get their feet wet with single-family homes to learn the business a little bit and get used to the ups and downs.

 

But maybe it’s just not for you and me. And that’s why I’m like, it’s exciting to see you progression your career because that maybe that’s your thing, right? Yeah. It ultimately comes down to what’s your highest and best use. Yeah. Yeah. But  yeah, it’s nice having you in the incubator and I don’t know when the next time we’ll be launching it, probably maybe do a one or two classes per year.

 

But yeah, go to simple, passive cashflow.com/incubator. To learn more about that or check out the free turnkey guide@simplepassivecashflow.com slash turnkey and yeah. Thanks or listening guys. And we’ll see you guys next time. 

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