My head is spinning. I've spoken to several people and I just don't know which way to go. I need to put a property on the market next month and do a 1031 exchange. Once sold and after fees and expenses, I will need to reinvest somewhere around $230K
My head is spinning. I've spoken to several people and I just don't know which way to go. I need to put a property on the market next month and do a 1031 exchange. Once sold and after fees and expenses, I will need to reinvest somewhere around $230K
In addition there are tons of other turnkey markets out there besides those listed above. Many of these markets are very well represented by sellers & turnkey operators here on BiggerPockets. In no particular order I have listed some of the most popular markets for out of state investors
Cincinnati, Ohio
Dayton, Ohio
Toledo, Ohio
Youngstown, Ohio
Cincinnati, Ohio
Memphis, Tennessee
Saint Louis, Missouri
Indianapolis, Indiana
Detroit, Michigan
Erie, Pennsylvania
Louisville, Kentucky
Milwaukee, Wisconsin
Jackson, Mississippi
Each of these markets is popular with turnkey investors because of the low barrier to entry, high rental demand & high rent to price ratio. I recommend setting up keyword alerts for each area as they are discussed in the forums daily with advertisements posted in the BiggerPockets marketplace hourly.
One thing to note when looking at the individual markets, you can make or lose money in any market. Don't think that one particular out of state market will shoot you to success or abject failure. It's not really that complicated to buy out of state. It only becomes complicated when investors try to over complicate or over think everything. Whenever you are buying a property out of state you should do a few things to ensure it's as smooth as possible.
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.
Google Clayton Morris and/or Morris Invest for a cautionary tale of what not to do when buying turnkey real estate
Understand you can not eliminate all risk, only mitigate it. If you are risk averse, real estate, (especially out of state) is not for you.
@Mary Mitchell the prop 13 on the ballot is NOT a repeal of the 1978 law. It’s a brand new one read more here: https://www.dailybreeze.com/2020/02/16/the-many-flaws-of-prop-13-the-2020-impostor/amp/.
Read up before you talk smack to others.
I suggested that prop 13 would not be repealed and that the proposed law is about commercial bldgs with carve outs for small LLs.... my point is : dont base financial decisions on false informarion. Be sure the why is real.
As for “talking smack” again, I dont know where this happened? I truthfully commented that most of the people on this board have something to sell - its wise to keep that in mind when reading their comments.
@Mary Mitchell the prop 13 on the ballot is NOT a repeal of the 1978 law. It’s a brand new one read more here: https://www.dailybreeze.com/2020/02/16/the-many-flaws-of-prop-13-the-2020-impostor/amp/.
Read up before you talk smack to others.
Oh, the irony.
It's like you didn't even read the thread... Perhaps you should take your own advice and reread the thread before posting something like this. The OP suggested that Prop 13 (2020) is disguised as an education bill that in actuality will repeal the original Prop 13 from 1978. @Mary Mitchell corrected her by stating that the original Prop 13 would not be repealed. Why the belligerence toward her?
Also, she's kinda right about all the usual suspects showing up when there's talk about California money wanting to invest OOS.
Thank you to everyone for all the comments. I don't know how to tag people. I tried the @name, but it doesn't work for me. Maybe someone can fill me in? I can't seem to find instructions on how to use this site.