Long Distance Turn Key Rentals

Rental Property Investor · Northern Virginia · Member since 2018 · 8 posts · 4 votes

I live in Northern Virginia and I am looking to invest in turn key properties in a few markets in other states. I would like to connect with other local investors who are already investing in long distance properties.

Many of the local REIA groups seem to be focused only on the local markets. Does anyone have any suggestions for connecting locally with other investors who own properties in other states. Thank you!

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Chris ClothierBusiness Member

Rental Property Investor · memphis, TN · Member since 2009 · 2k+ posts · 3k+ votes

Originally posted by @James E. Krause:

Many of the local REIA groups seem to be focused only on the local markets. Does anyone have any suggestions for connecting locally with other investors who own properties in other states. Thank you!

James - Welcome to BP!

What you posted is the best way to start the process of meeting other local investors. Be sure and keep posting here looking to connect and the best way to do it is to offer to buy coffee, breakfast, maybe lunch, dinner or a beer. Offer to buy an investor coffee in return for just sharing their process, their thoughts and their experiences. List the cities that are near you and let them know you'd be willing to meet them close to where they are if you are willing to travel a little bit.

These little meetings which cost you a few bucks, will be the best meetings you could have for learning how other investors have bought out of town. They will go a ong way to helping you develop your own process and you can do it all by posting right here on BP.

Good luck ~

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Hank Keller
Rental Property Investor · Mansfield, OH · Member since 2017 · 151 posts · 117 votes
8y
@James E. Krause Not local to you, but I have turnkey properties in Indy and Charlotte and can share my experiences over the past 5 years.
0 Reply
Mark S.Pro Member
Rental Property Investor · KY · Member since 2013 · 1k+ posts · 537 votes
8y
@James E. Krause, I invest in Memphis. Send me PM if you're interested in that market.
0 Reply
Joseph Lee
Investor · Daly City, CA · Member since 2017 · 1 post · 0 votes
8y
@Hank Keller, Hi Hank! I've been interested in turnkey rentals in Charlotte! I'm sending you a PM.
0 Reply
Tom Ott
Equity Raiser and Turnkey Provider · Cleveland, OH · Member since 2016 · 4k+ posts · 1k+ votes
8y
Originally posted by @James E. Krause:

I live in Northern Virginia and I am looking to invest in turn key properties in a few markets in other states. I would like to connect with other local investors who are already investing in long distance properties.
Many of the local REIA groups seem to be focused only on the local markets. Does anyone have any suggestions for connecting locally with other investors who own properties in other states. Thank you!
Investing in OOS Turnkey can be a great way to get a decent ROI. What markets are you looking into? Try looking for a company that is a TRUE provider. They should own, renovate, and manage the property all in-house. There should not be any third parties used aside from your inspector.
Try looking at:
The Best Types of Markets for Profitable Turnkey Properties
and
5 Things to Consider When Choosing a Turnkey Rental Property Location
1 Reply
James E. Krause
OP
Rental Property Investor · Northern Virginia · Member since 2018 · 8 posts · 4 votes
8y
Thank you Tom for the article links, I will check them out.
0 Reply
Chris ClothierBusiness Member
Rental Property Investor · memphis, TN · Member since 2009 · 2k+ posts · 3k+ votes
8y
Originally posted by @James E. Krause:

I live in Northern Virginia and I am looking to invest in turn key properties in a few markets in other states. I would like to connect with other local investors who are already investing in long distance properties.
Many of the local REIA groups seem to be focused only on the local markets. Does anyone have any suggestions for connecting locally with other investors who own properties in other states. Thank you!
James - Welcome to BP!
What you posted is the best way to start the process of meeting other local investors. Be sure and keep posting here looking to connect and the best way to do it is to offer to buy coffee, breakfast, maybe lunch, dinner or a beer. Offer to buy an investor coffee in return for just sharing their process, their thoughts and their experiences. List the cities that are near you and let them know you'd be willing to meet them close to where they are if you are willing to travel a little bit.
These little meetings which cost you a few bucks, will be the best meetings you could have for learning how other investors have bought out of town. They will go a ong way to helping you develop your own process and you can do it all by posting right here on BP.
Good luck ~
Podcast Guest on Show #224
REI Nation4.576 Reviews
Website View Page
2 Reply
Matt Caputo
San Jose, CA · Member since 2017 · 7 posts · 3 votes
8y
Hello all, I am located in northern California (south bay) and am looking to get into real estate investing. I am looking out side of CA due to the prices locally and am thinking about turnkey properties. At this point I am trying to identify the best markets to start the process. Thanks for posting the links @Tom Ott . Will check those out. Also looking for turnkey providers if there are any recommendations. Have seen some on older threads but if there are additional recommendations would be much appreciated. Thanks all.
0 Reply
Brian Mcmenamin
Rental Property Investor · San Diego, CA · Member since 2018 · 176 posts · 83 votes
8y
@James E. Krause
I didn't invest in turn key rentals, but I was buying/rehabbing/renting/refinancing properties in Virginia when I was in Hawaii.. I found some discounted REOs and the location through a friend, made a trip out there, and the numbers made sense.
My biggest recommendation would be to find the right team which includes in priority order: property manager, contractor, realtor. I put property manager up front because if you are planning on having a rental you will deal with them for the long term. Contractors, although they can be expensive and give you headaches, they are temporary. As for realtors, as long as you haven't signed a exclusive agent agreement, you can find another one.
When you do find your property manager make sure to dig into the weeds on the management agreement. Those agreements can be full of plenty of costs that can turn your investment into a nightmare.
Bottom Line: keep researching like you are. Don't rush into it especially when you can just drive over and make sure everything is going well.
I hope that helps. Please send me a message if you want some specific questions when looking for property managers. I generated a list that I run though to make sure they will fit the team.
1 Reply
Mike D'ArrigoPro Member
Turn key provider · San Jose, CA · Member since 2010 · 4k+ posts · 3k+ votes
8y
@James E. Krause you might want to narrow your choice of markets down to a few specific ones and focus on making contacts in those markets.
0 Reply
Matt Caputo
San Jose, CA · Member since 2017 · 7 posts · 3 votes
8y
Hi @Hank Keller, if you are willing, would love to get your thoughts on the Indy. area for investing. That is one of the areas I have been thinking about. Will DM you to see if you have some time.
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James E. Krause
OP
Rental Property Investor · Northern Virginia · Member since 2018 · 8 posts · 4 votes
8y
@Tom Ott Are there any turn-key providers who you have experience with who you would recommend we check out?
0 Reply
Andrey Keller
Member since 2018 · 18 posts · 3 votes
8y
@Hank Keller Hi Hank, can you please share your experience with me?
0 Reply
Hank Keller
Rental Property Investor · Mansfield, OH · Member since 2017 · 151 posts · 117 votes
8y
@Andrey Keller - My Turnkeys were purchased through self directed IRA’s as my active income is now running a carwash in ohio. My philosophy is that good returns only come through solid research, then comprehensive due diligence. I found a company that has construction, management and brokerage under 1 roof and operates in Indy, Charlotte and Kansas City.. These markets have population >1 Million with consistent growth; Good jobs and low unemployment, inexpensive houses in working class neighborhoods that create returns of at least the 1% rule and are cities with excellent credit ratings allowing them to invest back into the city. My first purchases 5 years ago included visiting the company and interviewing the employees for the systems they use, inspecting the houses and then reviewing the monthly reports once the purchases were made. I now have 8 properties in Indy and 1 in Charlotte. I’ve had evictions and maintenance but they’re response has been quicker and more efficient than my Ohio properties. Returns have been as good and in some cases better than my Ohio properties. I dont have a construction background so the turnkeys have been perfect for my strategy. I’ve partnered with the TK company owner this year on an AirBNB and hope to use this knowledge to start an AirBnB on my personal house in a couple years. Hope that helps... Hank
2 Reply
Tal Simpson
Rental Property Investor · Birmingham, AL · Member since 2017 · 53 posts · 56 votes
8y
@James E. Krause Come check out Birmingham. Still great cash flow to be found here but the Ham is on the way up
0 Reply
James Wise
Real Estate Broker · Cleveland Dayton Cincinnati Toledo Columbus & Akron, OH · Member since 2013 · 30k+ posts · 20k+ votes
8y
Originally posted by @James E. Krause:

I live in Northern Virginia and I am looking to invest in turn key properties in a few markets in other states. I would like to connect with other local investors who are already investing in long distance properties.
Many of the local REIA groups seem to be focused only on the local markets. Does anyone have any suggestions for connecting locally with other investors who own properties in other states. Thank you!
Post a few threads like this here on Bigger Pockets every so often & some investors should come out of the woodwork. Virginia is an expensive market so there should be many investors living there who've gone the turnkey route. Until you find some folks local to you to talk shop take a look at some out of state investment tips below.
- Don't buy in the roughest neighborhood in the urban core. Pick a solid B-Class suburban area. Perhaps a nice 1950's built bungalow.
- Always hire a 3rd party property inspector to give you an unbiased feel for the home. The reports are 40-90 pages long and go through the entire house in great detail.
- Get an appraisal. If your using financing the bank requires this. This is good. The bank isn't going to let you blow their money. They have more skin in the game then you do.
- Make sure you get clear title. If using a lender this is a non issue. They will make you do this. It's those maniacs that buy homes cash via quit claim deed off of craigslist that really get screwed.
- Make sure your property manager is a licensed real estate brokerage.
- Understand you can not eliminate all risk, only mitigate it. If you are risk adverse real estate, (especially out of state) is not for you.
1 Reply
James E. Krause
OP
Rental Property Investor · Northern Virginia · Member since 2018 · 8 posts · 4 votes
8y
Thank you James, I appreciate the tips. What is the best way to find a good quality property manager who will not only do a good job screening tenants but also stay on top of the tenants , minimizing problems?
0 Reply
Gregg Hutton
Real Estate Agent · Farmville, VA · Member since 2017 · 116 posts · 32 votes
8y
@James E. Krause i have details on turn key , owner looking to move immediately
0 Reply
Jeremy Simpson
Seal Beach, CA · Member since 2018 · 9 posts · 2 votes
8y
Anyone connected with a Turn Key Investment group in Mississippi?
0 Reply
Christian Brown
Investor · Oklahoma City, OK · Member since 2017 · 39 posts · 15 votes
8y
Hey @Jeremy Simpson - I’m a Mississippi realtor and investor and I also help run the MS Coast REIA. I work with turnkey properties as well as value adds. What exactly are you lookIng for? Let’s connect and see if we can’t get something done.
1 Reply
Jonathan Weaver
Nokesville, VA · Member since 2016 · 10 posts · 1 vote
8y
Hello BP! I also am living in northern Virginia and looking to invest out of state.
0 Reply
Andrey Keller
Member since 2018 · 18 posts · 3 votes
8y
@Hank Keller Thank you very much for such informative reply! Who did you set up your self directed IRA thru? I've been thinking about using my IRA too but not sure if I should try set it up myself or use third party.
0 Reply
Corby GoadeBusiness Member
Investor · Boise, ID · Member since 2014 · 3k+ posts · 3k+ votes
8y
Hey @James E. Krause, I run a turnkey investment company here in Boise, Idaho, the fastest growing metro in the country right now. We don't keep properties in stock, we work with each investor on an individual basis to identify properties that meet their investment criteria and manage the asset at their direction. Feel free to reach out to me if you have questions.
Good luck!
0 Reply
Andrey Keller
Member since 2018 · 18 posts · 3 votes
8y
@Tal Simpson Hi Tal! Can you please share which Birmingham's neighborhoods are up and coming?
0 Reply
Dmitriy Fomichenko
Solo 401k Expert · Anaheim Hills, CA · Member since 2012 · 18k+ posts · 6k+ votes
8y
@Andrey Keller,
self-directed IRA will always have a third party, aka custodian. Custodian is required for an IRA by the IRS. You can not have an IRA without custodian. Self-directed custodian will allow alternative investment options such as real estate, but they will be holding your IRA assets and paying all expenses related to the investment following your directions.
You can bypass the custodian by using Checkbook IRA (aka IRA owned LLC), this structure will enable you to have checkbook control over your retirement account, but custodian will still be there holding your IRA with single asset, the LLC. You as LLC manager will have full control over the LLC and how it's assets invested without going through the custodian.
0 Reply
Bernard ReiszPro Member
CPA delivering RE Tax Tools: 1031 Exchange, SDIRA, 401(k), Cost Seg · New York City, NY · Member since 2017 · 581 posts · 563 votes
8y
@Andrey Keller
There are many options available when choosing how to self-direct: IRA-based vs. 401k-based, Checkbook-Control vs. Custodian-Control, Custodian vs. Administrator, and so on.
Prior to making any decisions, it's best to first assess all the options. We commonly encounter folks investing in RE with an IRA who would have been better-served by a 401k. (Not everyone qualifies for the 401k)
There's much misconception regarding the role of custodians and administrators, as well as the extent to which they should be relied on for advisory services.
There are many excellent companies, but as the number of custodians/administrators has swelled it has become increasingly difficult to navigate the space. More options promotes competition and is great for consumers, but it's also more to sort through.
Prior to setting anything up, be sure to acquaint yourself with the prohibited transaction rules.
[email protected]
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