HI everyone one, so the COVID put a hold on my first real investment (I have a property where I live in S FL with tenants but this is the first out of state property)

I am looking for any further details on these states - from the research I have done Cleveland and Memphis seem to be good places.

Now with that in mind I was debating on going the turnkey route but most people I have spoken to say there is no real equity in those and you are buying at top dollar and you either need to ideally by a wholesale deal cash or work with a realtor but one that also has connections to contractors/builders/property management etc 

So any advice - the aim is to really be cash flowing every month as I need to increase my income so I am able to spend time with ageing parents. 

I have about 60k cash just sitting around and would qualify for a 200k mortgage (at least in florida)

feel free to pm me - im a realtor in South Florida so I understand this job board is full of hungry sales reps (and rightly so) but if you dont have the necessary connections this might not be the deal for you. once I have 2 or 3 units and a plan then for sure but in this early stages connections on the granular level would be pivotal 

If you got this far thank you and I look forward to some replies

 

@Axel Meierhoefer would likely beg to differ against any of the turnkey detractors!

I think the question really comes back to you. Are you able to put in the time to put together a team, find deals, and do them from a distance? Or would a more passive investment strategy make more sense for you?

You definitely lose a lot of value in turnkey because you are having one team do every part of the job. I don't think it is a bad route to get started in at least. The better you get at putting together a team the easier the process will become but as long as you are still positive at the end of the day then it might not be a bad idea for a first OOS investment. As for which market, I would have a couple of conversations with people on here and see if your goals fit that market. @Dorian Weber

Originally posted by @Taylor L. :

@Axel Meierhoefer would likely beg to differ against any of the turnkey detractors!

I think the question really comes back to you. Are you able to put in the time to put together a team, find deals, and do them from a distance? Or would a more passive investment strategy make more sense for you?

Thanks for the reply - my concern is that as an out of state investor I do see the great potential of a turnkey property however with buying at cost/fair market value I dont know if it would make more sense to work with a realtor who hopefully has connections with contractors and buy off the MLS, and have them assist in getting a Tennent etc.

Originally posted by @Brandon Goldsmith :

You definitely lose a lot of value in turnkey because you are having one team do every part of the job. I don't think it is a bad route to get started in at least. The better you get at putting together a team the easier the process will become but as long as you are still positive at the end of the day then it might not be a bad idea for a first OOS investment. As for which market, I would have a couple of conversations with people on here and see if your goals fit that market. @Dorian Weber

Appreciate the insight, the idea of Memphis appeals as I feel like it is a place if everything went bad I could always live there. who doesnt like country music - right. For me I would want positive cash flow to be able to take out as much as I can every month over greater appreciation potential

Originally posted by @Dorian Weber :

Originally posted by @Taylor L.:

@Axel Meierhoefer would likely beg to differ against any of the turnkey detractors!

I think the question really comes back to you. Are you able to put in the time to put together a team, find deals, and do them from a distance? Or would a more passive investment strategy make more sense for you?

Thanks for the reply - my concern is that as an out of state investor I do see the great potential of a turnkey property however with buying at cost/fair market value I dont know if it would make more sense to work with a realtor who hopefully has connections with contractors and buy off the MLS, and have them assist in getting a Tennent etc.

 

 That's why it really comes down to you and if you have the time to do that work and make those connections. It's not going to be easy to find a realtor who has deal flow and connections and is willing to work with out of state investors new to that market.

Originally posted by @Taylor L. :

  That's why it really comes down to you and if you have the time to do that work and make those connections. It's not going to be easy to find a realtor who has deal flow and connections and is willing to work with out of state investors new to that market.

 So I 100% agree, but im hoping that there might be a realtor who has those and when I come with cash / pre approved and its as sure a deal as can be it will help. I would plan a trip to both locations in May time to get some understanding and meet a realtor / realtors and go from there.

Thats the plan, but life happens when you are making plans though haha

@Taylor L. Exactly, but even in case you do, you still need a contractor, and a property manager, probably a local lender, insurers, title company. Not all are equally important, but all roles can break a deal, so you would have to build a team.

I have consulted to decades in multiple industries and I found that the good people who reliably work, have good communication skills, are trustworthy and dependable have a network, are known for these traits in the community - and in most cases very busy.

Yes, that's who you want but how likely is it that these folks are switching from whatever they currently do to an out of state investor. You could employ people, but that is very expensive.

So you have to ask: "Who is most likely looking to work with someone on a daily basis who rarely shows up and is only available via Zoom?"

Just wanted to jump in and say that Columbus Ohio may also be an option if you're looking up here. I'll be licensed next month and I'm outside Cleveland, there's good cashflow but not much appreciation. Columbus is continually referred to as a great place to invest, and may offer more in terms of connections. Every good contractor I know here is booked 3-6 months out

now its about team on the ground  once you have a short list get working on the team  you need to support  you  they in the end will make the biggest difference .. start where you have the strongest team get one area going  then when you are ready move to the next  we have teams in Ohio  Alabama Florida Indian and Memphis.. more then willing to chat about team building if you are interested getting them built has been an experience I live in Ontario