Purchasing Your First Out-of-State "Turnkey" Rental Property

[Adam Eckhoff]

Good Morning,

My name is Adam Eckhoff, commercial appraiser in New Jersey. Quick question for you all... Let's say I search for a $200,000, 2-unit duplex, on Realtor.com located in let's say Columbus, Ohio. Hypothetically speaking, let's assume the duplex generates $500 per month in income (after expenses, management, etc..).

Why would I not just pull the trigger and purchase the property, assuming I can find a management team to take care of it. 

How would i get money back out to purchase another property (how could i leverage it). Do i just save the $500 a month and use that to purchase another one down the road (assuming i living in a perfect world with no repairs/reserves/ cap exp..)

Thanks,

Adam.

[Michael Dumler]

@Adam Eckhoff, I know this is a hypothetical scenario, however, this deal doesn't exist unless it's located in a D-class war zone. If you acquire the property at market value, you can't pull any of your money out because the deal only has X% equity. Only buying well below market value or implementing the BRRRR strategy allows you to recoup your capital.