About Gobbi Wright
What does Gobbi Wright do?
Gobbi Wright helps investors identify quality long-term residential real estate investments that they can buy to build portfolios that serve them for many years.
We apply established residential investment principles first to metropolitan markets, then to neighborhoods, and finally to individual properties. We also work with experienced local real estate agents and property managers who provide the on-the-ground knowledge needed to evaluate opportunities within each market.
Our goal is to help clients find quality properties available on the open market that fit their individual investment strategy long term.
How does Gobbi Wright get paid?
The initial consulting and Strategy Session are provided without charge.
For investors who decide to purchase through our process, Gobbi Wright refers them to local professionals and they buy a property. At time of purchase the buyers pay a consulting fee through escrow to Gobbi Wright Enterprises LLC.
The fee structure and any compensation or referral relationships are explained before a client decides to proceed.
Is Gobbi Wright a real estate brokerage?
No. Gobbi Wright operates as a real estate investment consulting company.
Members of our team hold real estate licenses, but Gobbi Wright does not act as the local real estate brokerage in any markets where our clients purchase property. Local brokerage services are provided by licensed real estate agents in those markets.
Do you sell properties that you own?
No. We do not sell Gobbi Wright-owned properties to our clients.
Our process is designed to identify suitable properties listed for sale in the local market.
Are you a property management company?
No. Property management is provided by professional property-management companies within the markets we recommend. A qualified property manager is an essential part of our market-selection process.
Do you provide tax, legal, lending, or accounting advice?
No. Those services must be provided by professionals who are qualified and licensed in their respective fields.
We recommend that investors work with their own CPA, attorney, lender, insurance professional, and other advisors when making decisions involving real estate, financing, taxation, or legal matters.
Investor Fit
Who is your process designed for?
Our process is designed for people interested in owning long-term residential rental property. We work with both first-time and experienced investors.
Do you work with first-time investors?
Yes. First-time investors do not need to arrive with a completed strategy. Our process is not based on no-money-down investing, so investor need sufficient capital to purchase (and responsibly own) a rental property. Investors should be prepared for a down payment of 25%, closing costs, and appropriate reserves for unexpected expenses.
Do you work with experienced investors?
Yes. We help experienced investors evaluate their existing portfolios and consider possible next steps. That may include:
- Expanding the portfolio
- Diversifying geographically
- Improving the quality or condition of holdings
- Repositioning equity
- Simplifying the portfolio
- Or choosing to make no change
Do you only work with California investors?
No. We work with investors throughout the United States. We help investors look beyond their local market.
Do I need to sell a property before working with you?
No. Some clients are repositioning equity from an existing property. Others are purchasing with savings, financing, or other available capital.
Is this process appropriate for short-term investors or house flippers?
No. Our focus is long-term residential real estate investing. We are not the right fit for investors whose primary strategy is short-term flipping, rapid speculation, or immediate resale.
How long should I expect to hold a property?
The appropriate holding period depends on the investor, the property, and market conditions. As a general rule, investors should be comfortable holding a property for 10+ years.
How much involvement will be required from me?
The amount of involvement depends on the property, tenant, management company, and circumstances. Our goal is to help clients buy quality properties in suitable locations and use professional property management so the owner can manage the manager, rather than manage the property personally.
Out-of-state investing can become relatively low-touch, but it is not completely passive. The owner remains responsible for oversight, financial decisions, reserves, and major property-related decisions.
Investing Beyond Your Home Market
Why should I consider investing outside the market where I live?
Many investors live in markets where high prices, weak rent-to-price relationships, high expenses, or greater ownership friction make it difficult to build a strong rental portfolio.
Looking beyond your home market expands the range of property prices, rental economics, regulatory environments, and ownership conditions available to you.
The goal is not simply to buy somewhere cheaper. It is to find markets where the overall investment conditions may better support your objectives.
Is investing close to home safer?
It can feel safer because the property is easier to visit and observe. For investors who do all the work themselves, being close to it is essential.
However, proximity does not automatically improve the property’s purchase price, rent, expenses, neighborhood, tenant demand, regulation, management, or long-term outlook.
The quality of the market, neighborhood, property, and management structure matters more than driving distance alone.
How can I understand a market where I have never lived?
You cannot know an unfamiliar market in the same way as someone who has lived there many years.
That is why local professionals are essential. Investors should ask questions, review available data, speak with the real estate agent and property manager, and carefully evaluate the neighborhood and property.
If you remain uncomfortable with a market after completing your research, you should not invest there.
How can I buy a property without seeing it personally?
Some investors visit the property before buying. Others rely on:
- Video walkthroughs
- Professional inspections
- Photographs
- Comparable sales
- Rent estimates
- Property-manager input
- Local agent knowledge
- Repair estimates
- Closing and title information
The decision depends on your comfort level.
A plane ticket is inexpensive compared with the cost of purchasing the wrong property. If visiting the market will help you make a more confident decision, you should go.
How do I know which neighborhoods are suitable?
Neighborhood selection requires both data and local knowledge.
We ask local agents and property managers and do research to find the areas most likely to perform best long term.
A qualifying metropolitan market can still contain neighborhoods we would not recommend.
What makes remote ownership possible?
Modern technology makes it possible to research markets, share documents, review photographs and video, communicate with professionals, and oversee property management from almost anywhere.
Technology provides access. The quality of the local team makes the ownership structure work. If you hire a bad manager that lives down the street from you, it will not matter, they will still do a bad job. If you can’t find a good manager, you are left with doing it yourself, letting it sit vacant, or selling.
Will I need to travel to the market?
Not necessarily. Joel and/or Mike personally review markets from the ground before Gobbi Wright recommends them. However, that does not mean an investor should never visit.
Each investor must decide what level of firsthand familiarity is necessary to feel comfortable making a purchase.
Market Selection
How do you select markets?
We began by identifying U.S. cities with populations of more than 50,000 people and then gathering information to compare their investment characteristics.
We prefer markets where:
- Property prices and rents support reasonable investment economics
- Laws and operating conditions are workable for rental-property owners
- People have durable reasons to live there
- Housing prices have demonstrated relative stability
- Quality property management is available
Do you simply choose markets with inexpensive houses?
No. We avoid many of the country’s lowest-priced markets because low prices can reflect distress, weak tenant demand, poor property conditions, limited employment, or weak resale prospects.
We are not looking for cheap houses. We are looking for the best practical balance of economics, ownership conditions, neighborhood quality, and long-term demand.
What do you mean by stronger investment economics?
Stronger investment economics generally begin with a good house, in a good neighborhood, within a good market.
The property should be in suitable condition, appeal to reliable tenants, and have a reasonable relationship between price, rent, and expenses.
What is ownership friction?
Ownership friction includes the factors that cause an owner to lose money, time, or control. Some friction is required, so is bonus!
Examples include:
- Property taxes
- Insurance
- Repairs
- Maintenance
- Vacancy
- Tenant turnover
- Eviction costs
- Regulation
- Licensing requirements
- Weather exposure
- Poor property management
- Limited local vendors
Our goal is to favor markets where the overall ownership burden is understandable and comparatively reasonable.
What do desirability and livability have to do with investment returns?
The best rental properties tend to attract tenants who want to stay.
Tenant turnover is a key hidden expenses that can weaken a rental investment. When a tenant leaves, the owner may lose rent and incur cleaning, repairs, leasing, advertising, and management costs.
Properties in desirable, livable areas are more likely to attract stable tenants and future buyers. That can support occupancy, property condition, and long-term resale value.
Is there one best market?
No. Every market has different strengths, weaknesses, risks, prices, rents, laws, expenses, and long-term prospects.
We compare more than 20 factors, and no market ranks first in every category. The best market depends on the investor’s goals, capital, risk tolerance, and desired property profile. That is why we did so much research to find them.
Can a market stop qualifying?
Yes. We have stopped recommending a few markets after prices increased so quickly that rents no longer supported the purchase prices as effectively as they once had.
A market can remain a good place to live while becoming a less attractive place to purchase a rental property.
Do you recommend every neighborhood within a selected market?
No. In some smaller markets, we are comfortable with most or all of the city. In larger metropolitan areas, we may recommend only selected neighborhoods.
The question we use is: “Would I want to own a long-term rental in this part of the market?” If the answer is no, we do not recommend that area to our clients.
The Buy Box
What is a buy box?
A buy box is the framework used to define which properties deserve consideration.
It may include:
- Property type
- Number of bedrooms and bathrooms
- Square footage
- Purchase-price range
- Rent range
- Lot size
- Property age
- Condition
- HOA limitations
Do I need to create a buy box before contacting you?
No. Every investor has preferences, priorities, and limits, even if they have not yet organized them into a formal buy box. Helping define and refine the buy box is part of our process.
Why is the buy box important?
The buy box helps investors focus on properties that are most likely to achieve the results they want. It also prevents buyers from reacting emotionally to listings that do not fit their strategy.
Can the buy box change?
Yes. A buy box may change as the investor’s financial position, family needs, goals, experience, portfolio, and priorities change.
There is no single best buy box. There are buy boxes that fit and others that do not.
Does every property need to meet every buy-box requirement?
The property should meet the investor’s essential requirements and the majority of the preferred criteria. There should be must-have criteria and would be nice to have criteria.
A property that fails an essential requirement should generally be rejected unless the investor has a clear and well-supported reason to make an exception.
Property Evaluation
How do you evaluate an individual property?
We look for properties that suitable tenants are likely to want to live in and remain in for an extended period.
The ideal property profile varies by market and neighborhood, but we generally consider:
- Location
- Condition
- Bedroom and bathroom count
- Size and layout
- Supported rent
- Purchase price
- Taxes and insurance
- Repair exposure
- Tenant demand
- Resale appeal
Do you inspect the property?
No. Gobbi Wright does not perform physical property inspections.
The buyer should engage a qualified local inspector through the local real estate transaction process. We can help clients think through how inspection findings affect the investment (just call us), but the inspection and technical conclusions belong to the inspector and other appropriate professionals.
If you are not satisfied with the inspection or do not feel comfortable with the property, you should not buy it.
How do you estimate rent?
For broad market and ZIP-code analysis, we may use services such as Rentometer.com and other rental-data sources.
When evaluating a specific property, we recommend obtaining a rent opinion from the property manager. The property manager’s knowledge of the neighborhood, tenant pool, and current leasing market is the most important part of the final estimate. Also, they can tell you if they like it – because they will be managing it.
How do you account for repairs and major expenses?
Repairs are unavoidable, part of owning real estate.
Professional inspections can help identify existing problems before purchase, but not every future expense can be predicted.
Investors should plan for:
- Routine maintenance
- A few months to rent up
- Unexpected repairs
- Insurance deductibles
- Tenant turnover
- Capital improvements
- Replacement of roofs, HVAC systems, appliances, and other major components
These costs should be anticipated through conservative assumptions and adequate reserves.
Do you guarantee cash flow or appreciation?
No. Real estate values, rents, expenses, occupancy, financing, insurance, and market conditions do change. Investors can make money or lose money.
Our process is intended to improve the quality of the decisions and place more factors in the investor’s favor, but no investment outcome can be guaranteed.
Will every property produce positive cash flow immediately?
No. Cash flow depends heavily on the purchase price, down payment, financing terms, rent, taxes, insurance, repairs, vacancy, and management costs.
A property purchased without financing will probably produce positive cash flow, while a highly leveraged property may have limited or negative cash flow for a period of time.
In many U.S. markets, positive cash flow with only 20% down may be difficult to achieve under current financing conditions. Investors should approach the property with realistic expectations and a long-term mindset.
Local Professionals
Who is part of the local team?
The two most important local professionals that we refer to clients are:
- The local real estate agent
- The property manager
Other professionals we do not refer include lenders, inspectors, insurance agents, title professionals, contractors, and appropriate tax or legal advisors.
What does the local real estate agent do?
The local agent helps identify suitable neighborhoods and properties, provides local market information, arranges property access, writes and negotiates offers, and assists the client through the purchase process.
Properties are generally identified through the local MLS and purchased in competition with other market buyers.
What does the property manager do?
The property manager helps estimate rent, evaluates whether the property fits the local tenant market, finds and screens tenants, collects rent, coordinates repairs, and manages the property on the owner’s behalf.
A major objective is to place suitable tenants and keep the property occupied for long periods of time.
Do you guarantee the performance of local professionals?
No. We cannot guarantee another professional’s work or future performance.
We want clients to tell us when problems occur. If a professional can no longer perform effectively, we may stop referring clients to that person or company.
If we lose a trusted local agent or property manager and cannot identify a suitable replacement, we pause future recommendations in that market.
Can I use my own lender, agent, or property manager?
Clients may generally use their own lender.
Because the local agent and property manager are central to our market knowledge and operating process, using different professionals should be discussed with us before moving forward. We need confidence that the local team understands the market, the investment strategy, and the responsibilities involved.
Capital, Financing, and Reserves
How much capital do I need?
The amount depends on the property price, financing, closing costs, repairs, and reserve needs. As a general starting point, approximately $100,000 may provide enough capital for a down payment and reserves on certain properties in the markets we follow.
A useful initial estimate is approximately 25% of the property price for the down payment, plus closing costs and reserves.
What reserves should I maintain?
For the first property, we recommend maintaining $10,000 in reserves after purchase. This should adjust with additional purchases, and with the portfolio strategy.
Can I finance an out-of-state rental property?
Yes. Financing can be an effective tool for building long-term real estate wealth. Loan terms depend on the borrower, lender, property, and current lending environment.
We generally recommend at least a 25% down payment when practical because it may improve financing terms.
Is an out-of-state rental completely passive?
No. Professional property management can greatly reduce the owner’s day-to-day involvement, but the owner still needs to review reports, maintain reserves, approve major repairs, and oversee the investment.
Buying a good property in a suitable area, placing a reliable tenant, and using a competent property manager can make ownership much more passive.
What happens if the property becomes vacant?
The owner works with the property manager to prepare, market, and lease the property as quickly as practical. A vacancy can sometimes last for several weeks or months.
What happens if a tenant does not pay?
Tenant nonpayment is a risk in rental-property ownership and becomes more likely as an investor builds the portfolio.
The property manager will communicate with the tenant. If the issue cannot be resolved, the tenant may eventually need to leave or be evicted. This is one reason we prefer markets where eviction procedures are reasonably efficient, and not overly expensive.
What happens if there is a major repair?
The property should be repaired in a practical and cost-conscious manner.
Property managers generally work with local contractors and vendors they know. The owner should review significant repair recommendations and verify that the cost appears reasonable.
Major repairs are a normal risk of ownership. Some may be covered by insurance, while others must be paid from reserves.
What about weather and insurance risk?
We generally avoid markets with unusually high weather or insurance risk when the exposure is inconsistent with our investment objectives.
However, no market is free of weather events. Hail, wind, storms, flooding, and other hazards may still occur. Insurance and adequate financial reserves are important protections against these risks.
Existing Property and Equity
Can you help me think through whether to sell an existing property?
Yes. We help investors think through whether retaining, selling, exchanging, or repositioning an existing property may better support their long-term goals.
The appropriate decision depends on the property, equity, cash flow, taxes, financing, condition, and overall portfolio strategy.
Do I have to sell an existing property to work with you?
No.
Can you help me redeploy equity into more than one property?
Yes. In some circumstances, an investor may use equity from one property to purchase multiple properties with different advantages, such as:
- Newer construction
- Lower repair exposure
- Better cash flow
- Greater diversification
- Lower ownership friction
Whether that approach is appropriate depends on the investor’s situation, financing, tax considerations, and risk tolerance.
Can you advise me on a 1031 exchange?
We can help discuss how a potential exchange affects the property-search and investment process, but tax and legal advice must come from qualified professionals.
Anyone considering a 1031 exchange should consult a CPA, attorney, and qualified intermediary before selling the existing property.
Fees and Timing
Is there a fee for the Strategy Session?
No. The initial Strategy Session is complimentary and carries no obligation to purchase property or engage Gobbi Wright.
How long does it take to find and purchase a property?
The timing depends on:
- Whether the purchase is financed or cash
- The client’s readiness
- The buy box
- Property availability
- Due diligence
- The lender
A motivated buyer will usually complete the process within one to two months.
Will I be pressured to buy quickly?
No. Clients should move at a pace that allows them to understand the property, complete due diligence, and make a comfortable decision.
Can I purchase one property at a time?
Yes. We generally recommend purchasing one property, completing the acquisition, and stabilizing the property before purchasing the next one.
There are exceptions, including 1031 exchange situations where multiple replacement properties are required.
What if I have a 1031 exchange deadline?
You must comply with the applicable exchange deadlines.
Clients considering an exchange should involve a qualified intermediary and tax advisor early in the process.
Because our strategy focuses on finding quality properties that meet a practical buy box rather than searching for a single “perfect” property, we can often work within an exchange timeline. However, no property should be purchased without appropriate analysis and due diligence.
Primary button: Schedule a Strategy Session
Learn the Gobbi Wright Investing Process: