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When my wife and I were looking to buy our first home, we unfortunately found ourselves in a position where we were barely able to put enough down to purchase the home we wanted. We were looking for a home in Toronto, Canada and were determined to buy a home no matter how tight we were on cash. That’s when we came up with the idea that we would purchase a house with a basement and a separate entrance in order to house hack the property. That way, we’d be able to rent out that portion of the home in order to help us pay our mortgage and save up some more money.  Throughout the process of house hacking, we came to discover that it was not for my wife Lynn and I. While some people love house hacking, we both realized that the personal impact it had on us was not worth the amount of money we were saving. 

If you’re unfamiliar with house hacking, the concept is fairly simple: it’s an investment strategy wherein you are renting a portion of your house to someone else. It can be applied to multi-family rental properties, or your primary residence. For example, you could live in one of the multiple units of an investment property you’ve purchased, use it as your primary residence, and then use the money from other units you’ve rented out to pay your mortgage and other expenses. In single-family homes oftentimes the investor will live in the property and rent out a bedroom, basement or additional portion of the home in order to offset his mortgage and/or utilities. While house hacking is fairly easy to execute, however, it isn’t perfect. That’s why it’s important to weigh the benefits and the costs of house hacking before you jump in. Below are three reasons why house hacking can be problematic and why you may want to hold off before you decide to do it. 

 

1. Personal Impact

When you decide to house hack, you’re either living in the same exact home as your tenants, or right next to them. And that’s tough. You automatically have less privacy, especially if you’re sharing a home with a tenant, and your responsibility dramatically increases. That’s because when you decide to rent out either a room or unit that you own, you immediately become both the property manager and the owner. You’re responsible for any issues that arise with your tenants, so you’ll need to be accessible at all times in case there are repairs that need to be done or problems you need to answer to. Because of this added responsibility, house hacking can make your life a lot more stressful. Warren Buffett once said that investing is best when it’s businesslike, and when you decide to house hack, investing becomes much more personal. It’ll be more difficult to remain objective, as you’re not just managing a property, but you’re also living there. 

 

2.  You Have to Be A Landlord 

As stated above, house hacking can feel a bit too close for comfort since you’re suddenly living with or near your tenants. To make matters even more stressful, you’ll also have to assume the responsibility as landlord. And that means not just acting like landlord, but also legally being a landlord. You’ll have to do some research on your local and state laws when it comes to renting and make sure that you have a legitimate lease agreement that you can have your tenants sign and that will hold up in a court of law. It’s best to consult with an attorney to make sure that all of this is correct before you finalize your lease agreement. Additionally, because you’ll be acting as landlord in most cases, you’ll have to deal with the potential for a disagreement or possible evictions with the person(s) living with or near you. That’s why it’s important to select a tenant who you trust and will be compliant with your lease agreement. 

 

3. It Anchors You 

If you’re going to house hack in order to afford a property that you wouldn’t otherwise be able to afford, it may be a better idea to hold off and instead, buy a property you can fix and then flip. That’s why at MartelTurnkey, we suggest that if you do house hack, quickly move out so you’re not anchored to the property. After you do this, you can then rent an apartment and use the money you’ve made from selling what you house hacked in order to buy an out of state turnkey rental property. If you’ve bought a property in a location you’re not in love with, you may be forced to live there longer than you wanted to. If the numbers are good enough, this could be worth it. However, if multiple repairs are needed, you have to travel far for work, and you hate the area you live in, the cash flow on the property you house hacked really may not be worth it. 

 

While house hacking does have it downsides, it can be used positively in certain situations. Before you jump into house hacking headfirst, however, make sure you’re taking into account the cost of potential repairs you may need to make on your personal unit or those of your tenants. It’s also important to run the numbers to see what you’re looking at in terms of cash flow and potential profit. As mentioned above, if you are going to house hack, it may be a good idea to do it for a short period of time, then sell the house or property and use that money to buy an out of state turnkey rental. This will guarantee you cash flow with minimal work and a lot less stress. 

Thanks to the internet, we have endless amounts of information literally at our fingertips whenever we need or want it. That being said, however, because there is so much information out there, it’s difficult to discern what’s useful information from what’s not. When it comes to real estate, by doing a quick Google search, you’ll realize that there’s what feels like an endless supply of advice, tips and best practices in the industry from thousands of different “experts”. Which is why it’s important to narrow down what you’re reading and who you’re trusting in order to ensure that you’re getting the best information possible. Youtube just so happens to be one of the greatest resources when it comes to real estate education, thanks to a handful of experts who spend a lot of time creating videos packed with invaluable information. In order to save you some time sifting through real estate Youtube accounts, we’ve broken down the five most popular, and beneficial Youtube channels to follow. Below are five that each have their own specialties but that are all equally as engaging and informative. 

 

Graham Stephan

Graham Stephen has one of the most popular Youtube channels on our list with a whopping 2.47 million subscribers. And it makes sense why so many people turn to him advice. He’s a 30 year old who has a track record of over $120,000,000 in residential real estate sales, making him one of the best real estate experts out there. His Youtube channel has an array of videos – some of which talk about his personal journey in real estate, while others talk about his love of cars. Most of them, however, all share some sort of lesson he’s learned and how he learned it. His real estate videos tend to focus on remodeling and renovation, sources of passive income, real estate investment and the most beneficial real estate strategies. 

 

CHANNEL

Bigger Pockets 

BiggerPockets is a company founded by Joshua Dorkin in 2004 that is dedicated to helping people learn about real estate and how it works. The channel boasts a massive 612,000 subscribers who are sure to find any type of real estate advice they may need, whenever they need it. The channel offers content that covers every aspect of real estate investing from analyzing deals, how to find and finance properties, tips and advice, and so much more. And, unlike the other channels on the list, BiggerPockets features videos from an array of experts who specialize in different aspects of real estate. Within five minutes of heading to this channel, you’ll be hooked. 

 

CHANNEL

Grant Cardone

Grant Cardone is a businessman, investor, CEO of seven privately held companies and most importantly, founder of Cardone Capital, a real estate investment firm with $1 billion assets under management. Listed as “one of the top social media business influencers in the world,” by Forbes, Cardone is an expert when it comes to all things real estate investments. His channel consists of videos that contain book reviews, real estate advice, real estate hacks, and real estate lead generation. 

CHANNEL

Antoine Martel

One of the owners of Martel Turnkey, Antoine Martel, just so happens to have one of the best real estate Youtube channels out there. And that’s because he is an expert at a quickly growing real estate niche: turnkey rentals. Originally from San Mateo, California, Martel now owns turnkey rental properties throughout the United States and is passionate about helping others do the same. His proven real estate investment strategies have enabled countless clients realize passive income and financial freedom through out-of-state turnkey rental properties. Since its founding, MartelTurnkey, with Antoine Martel at the helm, has sold well over $11 million worth of cash flowing real estate. His Youtube channel is packed with years of real estate knowledge, interviews with other real estate experts, tours of turnkey rental properties, and renovations. 

CHANNEL

Eric Martel

Last but not least is Eric Martel, father of Antoine Martel, owner of Martel Turnkey and author of newly published book Stop Trading Your Time For Money. His channel is called “Break Away for The Rat Race” because it shows you how to do just that: quit your nine-to-five and start making money on your own terms. His videos are designed specifically to help the middle class break away from the nine-to-five rat race and empower them to pursue their dream career – in his case, real estate. His videos consist of inspiring interviews with a variety of real estate investors such as ex-football player, Jason Stewart; author of “One Rental at a Time”, Michael Zuber; and Fix-and-Flipper focused in Pittsburg, PA, Jessie Di Lillo, amongst others. His channel along with Antoine’s weave across generational boundaries. Whereas Antoine speak to the younger investor, Eric addresses issues that baby boomers tend to struggle with. Between Eric and Antoine, you’re guaranteed to get a master’s degree worth of real estate investing information for free. Similar to Antoine, Eric’s videos are full of substance, tips and tricks, analysis tools, and remarkable stories from everyday investors. Overall, he does a great job at demonstrating how to use real estate investing to achieve financial freedom, retire early and leave a legacy for future generations. 

CHANNEL

 

If you currently are in the real estate industry or you’re looking to get into it, all of these channels will provide you with an unbelievable amount of information on practically all areas you’d ever be interested in. Whether you want to learn how to become a real estate agent, broker a real estate deal, find the best investment property, or learn real estate lingo, any one of these channels is a great place to start. 

 

Eric Martel recently published his new book titled “Stop Trading Your Time for Money”. His book is a How-To guide for the middle-class to achieve financial freedom and leave a legacy for future generations. Eric believes that we are on the edge of a massive retirement crisis, that is not new, the movement to shift the retirement risk to then employees started decades ago. However the pandemic, the high unemployment, and the economic uncertainty will dramatically amplify its effects.

 

In his book, Eric shares how a typical middle-class worker can improve his/her financial situation with reliable investment strategies. The reader will also learn the key lessons about money that are not taught to most students. The reader will also be given tools and templates to get them started.

 

Get your copy on Amazon today.

 

Eric purchased his first apartment building at just 18 years of age while still at university. After graduation, in his position as an actuary, he was dismayed to see hundreds of company pension plans being rolled over into 401(k)s shifting the retirement risk to employees. This made him reconsider traditional beliefs about retirement saving. It also made him question his role as an actuary. A few years later he lost a fortune during the Dot com crash of 2001 and he started looking for ways to earn passive income and stop trading time for money. He eventually formed MartelTurnkey with his two sons. Now he wants to share what he’s learned with his book.

When it comes to investing, there’s one rule that’s more important than anything else: never invest money that you can’t afford to lose. It might be tempting to throw your newly hard-earned money into a real estate venture you’ve been dying to get involved with, but before you do, keep in mind that it’s important to have enough cash saved before you do. It’s easy to get ahead of yourself, so it’s important to start SMALL. The last thing you want to do is dump all of your hard-earned money into one investment strategy when you first begin investing (Match Investment Strategies With Your Goals). That’s why we’ve created this guide based on the amount of cash you have set aside. If you follow the strategies and guidelines listed below – and make sure you’re not investing before you have enough cash – you’ll be well on your way to making consistent passive income while building your real estate portfolio.

 

1. $0 – $20,000: KEEP SAVING AND LEARNING

While it may be temping to start investing in real estate once you’ve saved your first $10,000, try your best to hold off. Waiting until you have a solid $20,000 set aside will be greatly beneficial in the long run. While you build up your savings, be patient with yourself, and take the time to learn all that you can about investing in real estate. This is a period where you can gain all the knowledge you’ll need for your future endeavors. Just be patient and realize that it’s okay to not jump into investments right away. 

 

2. $20,000 – $50,000: BUY A TURNKEY RENTAL PROPERTY

Congratulations! You’ve officially set aside enough cash to start investing. At this point, I would highly suggest buying a turnkey rental property (How To Start Real Estate Investing). If you’re unfamiliar with these, you’ve come to the right place. Basically, a turnkey rental property is one that is fully rehabbed and ready to rent out. All you have to do it once you buy it is literally “turn the key” to unlock the front door. Your tenant can move in immediately, and a management company runs it for you, taking care of any repairs or maintenance issues that might arise. This is why people can own turnkey rental properties in an entirely different state and have the process run very smoothly. Because repair costs tend to be so low on turnkey rentals, they’re expected to bring in strong cash flow for the first several years, making this a solid option for first-time investors. 

 

3. $50,000 – $100,000: BUY TURNKEY, BRRRR, OR FLIP

At this stage in your investing, you have a few more options. First, you can keep buying turnkey rental properties (or have waited until now to buy your first). As stated above, this is one of the easiest and least work-heavy investments to make. You also have two other options that I tell people about. Let’s start with BRRRR. This stands for “buy, rehab, rent, refinance, repeat”. Through the BRRRR method, you’ll buy homes quickly, add value through rehab, build cash flow by renting, refinance into a better financial position—and then do the whole thing again. The key to success with the BRRRR method is to buy properties under market value and never investing more than 75 percent of the property’s after repair value (ARV). The third option would be to flip your real estate investment – basically, buy it, spruce it up, and then re-sell it for a higher price. Similar to BRRRR, it’s important to never pay more than 70% of the after repair value (ARV), minus repair costs. 

 

4. $100,000+: BUY TURNKEY, BRRRR, FLIP, OR  BUY MULTIFAMILY

So at this point you’ve saved enough to officially invest in multifamily apartment buildings. At this stage in your investment journey, you’ll have the most options and can decide between the three options mentioned above, or buying a multifamily apartment building. Whatever you do decide, at this stage in the game, you’ll have more flexibility. With multifamily apartment buildings, you’ll generate cash flow, passive income, valuation potential, scalability and tax benefits. At the same time, however, both turnkey and BRRRR will also provide you with most of the same. For more information on the seven benefits of turnkey rentals, check out this article: 7 Turnkey Property Benefits To Know.

No matter where you are in your financial journey, there’s always something to plan for. That’s why we want to encourage you to do your research, save, and whatever you do – do not impulsively invest your hard-earned money. It may take time, but your saving will pay off and you’ll soon be the owner of an impressive real estate portfolio. 

We were recently fortunate to be able to interview another one of our valued investors. Elena lives in Westchester County, New York, and has been investing alongside her husband for five years now. As a full-time real estate investor, Elena has learned a ton about real estate, how to comfortably invest out of state and how to match her family’s goals and expectations with real estate property. We hope you enjoy reading about Elena’s experience with real estate investing in general and with MartelTurnkey in particular. 

 

MT: What first inspired you to get into real estate investing?

 

Elena: My husband and I have always thought about the best ways to gain financial independence, so it was a quick process once we started learning about real estate investing. Our number one goal was to gain that financial independence with passive income. But the second reason is because we both wanted to create a lasting legacy for our family and children. When I think about a legacy, I just loved the idea of having a portfolio of income-producing properties to leave behind. In the beginning, it was about expediting our path to financial independence. The more we learned, the more we realized that real estate investing is a great way to build generational wealth. We started developing a more interesting perspective on accumulating and preserving wealth through generations. We love that we’ll be able to leave behind a portfolio of income-producing properties for our children as it will give them a sort of safety net, something they can count on–not that they have to–but something that is available to them. After all that realization, that’s when I decided to pursue real estate investing full-time.

 

MT: How have you set up your real estate investing business?

 

Elena: On the passive side, we roll most of our rental properties into the LLCs we have set up. We’ve  set it up this way because it gives us asset protection, more flexibility, and it makes it more straightforward for tax purposes. On the active side, we have our company called E2F Properties, which I’m growing and building daily.

 

MT: Have you noticed an improvement in your lifestyle or how much time you are able to spend with your family?

 

Elena: The short answer is yes. But we didn’t start investing in real estate to experience the lifestyle change. My husband enjoys his job, and I enjoy the business of real estate investing. Neither of us minds working hard as long as the work allows us to grow and improve as individuals. I believe that striving to become better makes me happy, keeps me at peace with myself and makes me feel successful. In the beginning, we looked into real estate investing as a way to increase income and expedite financial independence. Once we got into it, I have had a whole shift in my mindset about building generational wealth. And I think that moving toward our goals more quickly and becoming a better, more informed person are ways to improve lifestyle. It goes back to how you use your time. What do you do with your time? Having control and flexibility with how you spend your time is one of the most important assets, in my opinion. People ask me sometimes what I think of success. I think of success as working every day to become a little better and toward having full control of how you spend every minute of your life.

 

MT: What made you comfortable with investing in out of state real estate?

 

Elena: For me, I was never not comfortable with out of state investing. Because New York, where we live, is not a landlord-friendly market, we looked to invest out of state from the beginning. We researched many markets where people are doing business and where there is a lot of investment opportunity. I got in touch with some turnkey providers in multiple states, as that was the easiest way to start. And that’s how I started.

 

MT: How did you find MartelTurnkey?

 

Elena: It was through a group of investors that we both belong to. I stumbled on the name in an online community. At that stage we had already bought a few properties from other turnkey rental companies, but we weren’t very happy with their products and process. We felt we were just one of many investors, and these properties were average picks. And then we saw Antoine at this investors group. From the first time we spoke with him, we were impressed by how knowledgeable he was. The market knowledge and plans he had for his company convinced us of his competence. We knew from the first conversation that we could become long-term partners. We have since bought many properties from MartelTurnkey and it has always been a great experience. 

 

MT: What kinds of questions did you ask before investing with MartelTurnkey?

 

Elena: We started by asking a lot of questions about the market. For example, our first property we bought with Antoine was in Memphis and it was a new market for us. All our questions were about the market. Why Memphis, why this zip code, why this area, and so on. The second set of questions were around the property. The process of finding the house, types of renovations he does and so on. Finally, we asked what the process was for us as investors. We didn’t just want to buy a one-off property; we were looking for a good partner. We wanted to make sure that this company, this partner, would be  there for the long term.

 

MT: What has your process been working with MartelTurnkey? 

 

Elena: It’s been very, very simple, to be honest with you. The difference between MartelTurnkey and others is that you can tell they spent a lot of time and effort in making the process as simple and as transparent as possible for investors. They provide you information about the property and put you in touch with a network of professionals that make the purchase simple. I’m talking about lenders, inspectors, property management companies they’re using – the whole experience becomes turnkey. And the best part of that, is that these are the same companies and individuals that they use themselves.

 

MT: What real estate investment challenges have you had to overcome?

 

Elena: I think the biggest challenge for us is building a portfolio of properties that is right for the needs of the moment, but also set up to be successful in the longer term. We’re looking at this as a way to create a large portfolio of properties which will give us income to be financially independent and build generational wealth. As such, we have to strike a balance between cash flowing properties and properties in appreciating neighborhoods. Our biggest challenge is striking a balance between looking at the needs of the moment to make sure that we continue to grow the portfolio, while thinking longer term.

 

MT: What has your experience been like working with MartelTurnkey?

 

Elena: My experience has been great, and I would recommend them to anyone who is either starting or looking to grow their portfolio. As I said, we have worked with other turnkey providers before who do not offer the same service as MartelTurnkey. I like the fact that they’re knowledgeable and fair. Those are very scarce attributes to find in this industry. Doing it right by their investors is a differentiating factor for them. That’s why I keep recommending them to other people. My experience has been very positive. 

 

MT: What advice would you offer to first time investors?

 

Elena: Three pieces of advice. 1) Do some research. Do secondary research, get online. There is a ton of information available online; seminars, programs, groups, and so on. Spend time reading through that information. 2) Talk to people. Don’t just rely on secondary research. Do primary research. Find a few people that either did it or are doing it even better and talk to them. 3) Don’t get in the trap of analysis paralysis. If you don’t try and if you don’t fail, then you don’t learn and you don’t grow. 

 

If anyone has questions for you, what’s the best way to reach you?

www.e2fproperties.com

info@e2fproperties.com

914-999-2293

 

Being a turnkey rental owner is a no-brainer, right? You buy a property, get checks deposited into your account and go about your day. There’s a little more to it than that, though. While owning a turnkey rental is a means to get passive income there are a few tiny mistakes it’s possible to make in the beginning that can get you off on the wrong foot. We’ve compiled a list of the most common no-nos to avoid as a new turnkey rental owner:

 

Firing Your Property Manager Right Away

 

Every turnkey rental owner wants to make as much profit as possible. Since property management is one of the expenses that cuts into profit, the first thing that many inexperienced turnkey rental owners do is fire the property management company. They figure that they’ll be able to deal with whatever issues might come up. And, since a tenant is already in place, they won’t have to deal with getting a new tenant for a long time. 

 

All of our MartelTurnkey turnkey rentals  come with trusted and experienced property management in place. We stake our own reputation on the integrity of those PMs. We feel their services are worth every penny, and we think you’ll agree. You’re always free to find a new PM or just fire the one you have and go it alone. But we don’t recommend it. It’s true that anyone can pick up a phone and call a remote plumber to go check out a broken dishwasher or a burst pipe. But is that really the life you wanted when you started looking for passive income opportunities? Do you really want to try and figure out how to interview tenants remotely and get leases signed? The smart choice is to wait at least six months before making any decision about your property management company. 

 

Knocking on Your Tenant’s Door

 

Our new turnkey rental owners are always excited about being new property owners. We get it! It’s an amazing thing to know that you’re a landlord and that you’ll be getting passive income checks in the mail every month! But some new landlords also want to meet their new tenants. It’s natural to be curious about the person or family who’s living in your property. But going to the property and knocking on the tenant’s door isn’t a great thing to do. First of all, they don’t have to invite you in unless you have a reason and give them 24 hours’ notice. The situation would be awkward if you just show up unannounced. Remember that, from the tenant’s perspective, that property is their home. It’s where they hug their family and tuck their children into bed each night. While you’re the person who makes that possible by allowing them to rent from you, that doesn’t mean you should intrude on their privacy. Your property management company can tell you all you want to know about your current and future tenants. If you’re still madly curious and you can’t help yourself, you can ask—through your property manager—if the tenant would be willing to meet you briefly if you’re ever in town.  You could actually use the opportunity to ask if the tenant is happy or if they have any concerns. And almost any tenant would be appreciative of an attentive landlord! 

 

Unnecessary Spending

 

As a proud turnkey rental owner, you may feel the urge to “pretty up” the rental. This is what you’d do if you were going to live in it, right? And it’s only natural that you want your tenants to have an attractive living environment. But remember that your family doesn’t reside in the property. It doesn’t have to live up to your personal standards. In fact, in today’s climate, most cash flowing rentals are in out-of-state areas where the real estate investor may not want to live. The other thing to bear in mind when you buy MartelTurnkey turnkey rentals is that your new turnkey rental was already fully renovated before you purchased it. You can always review the full list of completed renovations on our website. Your tenant is already enjoying life in an attractive home without you spending money on window boxes, landscaping, paint, curtains, etc. Save your money so you can buy another turnkey rental in the future for even more passive income!

 

Foregoing a Buffer Fund

 

As we said, when you buy a MartelTurnkey turnkey rental your property has already been fully renovated. If it needed a new roof, we put one on for you. If the HVAC system was about to call it quits, we replaced it for you—all before you ever purchased the property. Having said that, things do break. They need to be replaced or repaired. Once you take ownership, you should be prepared for certain expenses over the years, just like owning any house. One of the mistakes that new turnkey rental owners do is to take all their passive income and spend it or tie it up. Of course, spending some of it is expected. That’s what money’s for, right? But you don’t want to get caught ten years down the line with a bill for a new front porch and not have the cash to pay for it. Our advice? Set up an account where all your rent money is automatically deposited by your property management company. Retain a percentage of it to cover unexpected expenses. That way, your rental is fully paying for itself and you’ll never have to pay out of pocket. 

 

When you buy a MartelTurnkey turnkey rental, you’ll be supplied with everything you need to be a smart—and profitable—real estate investor. But if there’s ever a time when you need some advice about what to do or what to avoid, we’d like you to contact us. We’re not just your turnkey rental provider when we have something to sell. We’re your real estate investment partner for life.

 

While many people’s retirement accounts were cruising along in 2019, they quickly hit a major bump in the road once COVID-19 rolled into existence in early 2020. With businesses closing and unemployment soaring to frightening levels, the stock market and, subsequently, retirement accounts took a nosedive. Though the economy will undoubtedly eventually recover, the fact is that the stock market isn’t doing your retirement account much good. Whatever gains you previously enjoyed have likely been wiped out by the pandemic, and it will be a long road to recovery. If you are eager to maximize your returns and gain much greater levels of control over your retirement, consider self-directing your retirement account.

 

Access More Investment Funds

Whether you are already partially invested in turnkey rentals or you’re still in the education phase, you probably know how much more stable and reliable real estate investments are than stocks. Wouldn’t it be nice to be able to invest more money into what you know works rather than have the most important savings account in your life tied to a stock market that is constantly heaving with the whims of public opinion and social and political unrest? You’ll have the opportunity to make higher returns in the long run by being able to access more of your investment dollars through self-directing your retirement account.  

 

Take Over the Decision-Making Process

If you feel you’re a savvy investor, you’ve probably experienced frustration that you have little or no say in where your retirement account money is invested. One of the most satisfying benefits of self-directing your retirement account is the newfound power to make decisions on where to invest your own retirement savings. Instead of being at the mercy of financial managers who get the same commission whether or not your account grows in value, you can leverage your own real estate knowledge to get maximum returns.  

 

Maximize Returns

You’ve probably heard it said that smart investors can find ways to make money in any kind of market. But how can you possibly make dependable money in the stock market these days when everything is in such turmoil? 2020 has been a nightmare year. From political dissent to global health crisis to social unrest and upheaval, it’s all been played out on a massive scale. The effects on the stock market have been harsh. However, the real estate market offers unprecedented opportunities for smart investors. Mortgage rates are at historical lows. This is the perfect time to get in on real estate investing through turnkey rentals and see average returns of 15% or more.

 

If you’re sick and tired of having your investment choices limited by financial services companies, make the move to self-directing your retirement account so you can invest in real estate. Since there is no way of knowing when businesses and jobs will recover from the COVID-19 crisis, the stock market is likely to experience many more ups and downs. By relying on the safety and security of turnkey rentals, you’ll gain peace of mind as well as see higher returns for your retirement account.  Next  week we’ll be giving you more information about exactly how to go about self-directing your retirement account so you can access more funds to invest in turnkey rentals.

 

As you read in our previous blog post, we’ve started investing in the beautiful city of Baltimore. We’ve already sold our first supply of Baltimore turnkey rentals, but we have several more that are currently being renovated. They’ll be available to our investors shortly. Like the previous two Baltimore turnkey rentals that we sold, the upcoming rentals are also row houses. Depending on where you live, you may not have row houses in your city. But in Baltimore, row houses have a distinguished history of charm and elegance. Here’s more information about what row houses are and why they’re so desirable.

What is a Row House?

A row house is defined as a residential dwelling that shares at least one wall with an adjacent dwelling, shares a roof line, and is similar or identical in exterior appearance and interior layout to its neighbors. A row house is sometimes called a brownstone, in which case a brownstone façade has been added to the front exterior of the row house. You may also have heard the term “terraced” houses, which is another way to describe a row house. Townhomes are very similar to row houses, but may only consist of two dwellings, whereas a row house is generally part of a row of multiple residences.

 

If you’re trying to picture a row house, there are some great cinematic examples. In “You’ve Got Mail,” Meg Ryan’s character, Kathleen Kelly lives in a row house. In “Something Borrowed,” Ginnifer Goodwin, Kate Hudson’s foil, resides in a row house. Opening scenes of older TV shows like “All in the Family” and “Full House” featured images of quintessential row houses. You can also review the two Baltimore turnkey rentals we just sold to see what row houses look like in real life. Once you visualize what row houses look like, you’ll start noticing them everywhere, particularly in large cities on the Eastern seaboard, like Baltimore.

 Why Are Row Houses Considered Desirable?

Everyone appreciates the value of row houses. Investors love them because they are historical, highly rentable and can offer excellent ROI. The layout of row houses lends them to larger square footage, since the living areas will be two, three or even five stories high. In fact, if you look at the square footage of the Baltimore turnkey rental on 32nd Street that we just sold, you’ll see that the square feet is 1,428, and it comes with 3 bedrooms and 1.5 bathrooms. The lucky investor who scooped this up can get $1,500 in rent, and a 15% ROI.

 

Renters love row houses because they are historical and typically have very charming features like wide front porches, nooks and crannies, arched doorways and things that make a house feel more like a home. Row houses also promote a sense of community, since front porches and common areas are in close proximity, and they provide a greater amount of living space for families than an apartment or a detached single-family home.

History of Row Houses in Baltimore

The first row houses in Baltimore were constructed in the late 1700s. Baltimore’s architects drew inspiration from England, where rowhouses often surrounded neighborhood parks and provided housing for the middle class. As the population of Baltimore grew, more row houses were erected that families of every income level could afford. The 1850s saw a boom in the rail industry in Baltimore, and thousands of Italian immigrants needed housing, so the three-story “Italianate” row houses were built. These featured ornamental elements that were easily mass- produced, in keeping with row house “identical” stylings.

 

When motor cars became a frequent sight, more row houses began cropping up along street car lines, farther from the city center. The economy was flourishing and the new row houses reflected a more unique and colorful look than their utilitarian predecessors. As timed moved on, row houses became the default residential construction method and they can be found throughout Baltimore, marking each era of growth.

 

Like most cities, Baltimore is comprised of neighborhoods, each one with unique architecture that is indicative of a particular time in history. For our purposes, we have identified areas of Baltimore that offer the most value for our investors, both now and in the future. We look forward to offering you more chances to invest in Baltimore! Please be on the lookout as we bring you more Baltimore turnkey rental investment opportunities!