I am new to the site was well as rental investing. I am looking to purchase rental properties out of the state. I have done some searches through the forums and have found a lot of helpful information. I am currently using Brie Schmidt site to find some tunrkeys. Although not on her site i am currently working with Roofstock.com as well as Epic real estate. I am currently looking at a home in lithonia, GA.
Any advice? guidance?
I am looking for cash flow mainly. I have about 60k in cash to go with.
$60k in cash can get you 2-3 decent started homes in a Midwest type market as long as you qualify for conventional 20% down financing. There are a lot of companies that offer a TK service so make sure you take a little time to educate and do research on markets and companies.
hi kevin have you considered looking in the UK, as the pound is super weak right now compared ot the dollar, theres not many companies in the uk that offer full turnkey solutions as it dosnt seem to be a major thing
This is probably not what you want to hear, but I would first make sure you have a solid foundation of knowledge about how to analyze real estate markets on a more macro level, how financing works and how to run cash flow projections on each house. The beginner's guides here on BP are very good for this, so if you haven't already went through them, it's probably a very good idea.
I just see to many people jump right into looking at properties and buy carelessly. The city and neighborhood where your home is located will have more impact on your long-term success as a buy & hold investor than anything else. Plus most of the numbers you see advertised for turnkey properties are inflated and you NEED to do your own analysis.
Welcome to the site @Kevin Marques
I suggest you make sure your 1st investments are on the higher end of the neighborhood spectrum. Go with the higher purchase price & rent. You don't get the chance to earn a sexy return like a lower priced property with a higher rent to price ratio but you also don't have to deal with the downside that is inevitable with those properties.
After you have a foothold on the industry and the process of being a rental property owner you can look into higher risk/reward investments.
Thanks for all the feedback. @Anton Ivanov thanks for the info. I have been doing a lot of research lately and reading. I developed my own spread sheet using all the information here and other places.
A couple rules I set up for myself.
1. 1% rule, rent needs to be at least 1% of purchase price
2. with little to no profit I should be able to pay monthly expenses with half of the estimated rent
3. Using areavibe.com:
A. Looking for places where renters are = to or > the national average 35%
B. C+ or better neighborhoods
C. Income rates of renters are = > the national average 30k
4. Income of tenants are 3x rent
5. Looking at places where rent averages 850+ (if there is a turn in the economy I want room to sustain lower rents). Similar to what @James Wise had said.
I making this as i go along.
thank for all your feedback!
Also new to bigger pockets. Are there any turnkey providers/markets you can recommend? I've been doing some research into Turn Keys and considering pursuing this route as my current area (Los Angeles) is pretty pricey.