Description: Purchase fully renovated, ready-to-rent properties managed by a turnkey provider to minimize involvement and generate passive rental income.

Implementation Steps:

1. Research Turnkey Providers:

• Providers: Consider reputable turnkey providers such as Roofstock, HomeUnion, and Memphis Invest.
• Evaluate Providers: Assess their portfolio, market areas, and property management services.

2. Select Investment Markets:

• Target Markets: Identify markets with strong rental demand and appreciation potential, such as Memphis, Atlanta, and Indianapolis.
• Example Properties: Look for properties priced between $100,000 and $200,000. Example: A 3-bedroom home in Memphis priced at $150,000.

3. Property Purchase and Financing:

• Down Payment: Use equity from the inherited property or savings for down payments.
• Example: Extract $100,000 through a cash-out refinance on the inherited property and use it for multiple down payments.
• Mortgage: Finance the remaining amount through a mortgage. For a $150,000 property, a 20% down payment is $30,000, with a mortgage of $120,000 at 6% interest.

4. Property Management:

• Turnkey Management: The turnkey provider handles tenant placement, rent collection, and maintenance.
• Management Fees: Typically range from 8-12% of monthly rental income.

Financials:

1. Single Property Example:

• Purchase Price: $150,000.
• Down Payment: $30,000.
• Mortgage: $120,000 at 6% interest.
• Monthly Mortgage Payment: Approximately $719.
• Monthly Rental Income: $1,200.
• Annual Rental Income: $1,200 * 12 = $14,400.

Costs:

• Mortgage: $719 * 12 = $8,628.
• Management Fees: 10% of rental income = $1,440.
• Maintenance: Estimated at 1% of property value = $1,500.
• Total Annual Costs: $8,628 (mortgage) + $1,440 (management) + $1,500 (maintenance) = $11,568.
• Net Annual Income: $14,400 - $11,568 = $2,832.

2. Scaling the Investment:

• Multiple Properties: Using $100,000 extracted from the inherited property, purchase 3 properties.
• Total Value: $450,000.
• Total Down Payment: $90,000.
• Total Monthly Rental Income: $3,600.
• Total Annual Rental Income: $3,600 * 12 = $43,200.
• Total Annual Costs: $11,568 * 3 = $34,704.
• Net Annual Income: $43,200 - $34,704 = $8,496.

Time Needed:

• Initial Setup: 1-3 months to research, select properties, and complete purchases.
• Ongoing Management: Minimal, as the turnkey provider handles day-to-day operations.

Risks:

• Dependence on Provider: Quality and reliability of the turnkey provider can impact investment performance.
• Market Risks: Property values and rental demand can fluctuate.
• Maintenance Costs: Unexpected repairs can affect cash flow.

Useful Resources:

• Roofstock Turnkey Investment: Roofstock
• HomeUnion Turnkey Properties: HomeUnion
• Investing in Turnkey Real Estate: Investopedia

By leveraging the equity from your inherited property, you can invest in multiple turnkey properties, providing a diversified and passive income stream. This strategy minimizes your involvement while allowing you to benefit from rental income and potential property appreciation.

Description: Pooling funds with other investors to invest in large commercial or residential properties, managed by a syndicator or through a crowdfunding platform.

Implementation Steps:

1. Choose a Platform:

• Platforms like CrowdStreet, RealtyMogul, and EquityMultiple are popular choices.

2. Review Opportunities:

• Analyze available investment opportunities on these platforms. For example, CrowdStreet offers individual commercial real estate projects with historical returns ranging from 11.5% to 26.4%​ (SparkRental)​.

3. Invest:

• Allocate funds to chosen projects. Minimum investments typically range from $5,000 to $25,000 depending on the platform and specific deal.

4. Monitor Investments:

• Track progress and returns through the platform’s dashboard. Ensure regular updates on project performance and financial health.

Potential Financial Upside:

Returns: Average annual returns vary by platform and specific investment.

• CrowdStreet: 11.5% to 26.4% IRR​.
• EquityMultiple: 15.01% average IRR since inception​​.
• YieldStreet: 9.61% average IRR for real estate investments, with equity offerings targeting 15-20%​​.

Costs of Implementation:

• Minimum Investment: Ranges from $5,000 to $25,000.
• Platform Fees: Typically 0.5% to 2.5% of the investment amount depending on the platform. For example, EquityMultiple charges 0.5% to 1.5% in fees​. 

Time Needed:

• Initial Setup: 1-2 weeks to research and choose a platform and investment.
• Ongoing Monitoring: 1-2 hours per month to review updates and manage investments.

Risks:

• Illiquidity: Investments are typically illiquid for the entire holding period, often 5-7 years.
• Single Asset Risk: Investments tied to individual properties may increase risk if the property underperforms.
• High Risk: Potential for significant financial loss if the project fails.

Useful Resources — check the full plan.

By leveraging these platforms and following the outlined steps, you can diversify your investment portfolio and potentially achieve substantial returns through real estate syndications and crowdfunding.