Long Distance Turn Key Rentals

34 Replies

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!

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

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 ~

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.

@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.

@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
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.

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?

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!