Buying real estate out of state

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Buying real estate out of state

Andrew Z.
CA · Member since 2020 · 8 posts · 4 votes

Hello All, I am looking to purchase a turn key property with a management company. I am looking at Ohio, Tenn, Texas, or the Kansas City area. Does anyone have a turn key/management company they recommend and some pros/cons of these different states. I am in California and out of state investing makes more financial sense, as well as California not being landlord friendly. Thanks

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Remington LymanBusiness Member
Real Estate Agent · Columbus, OH · Member since 2017 · 6k+ posts · 7k+ votes
6y
Originally posted by @Andrew Z.:

Hello All, I am looking to purchase a turn key property with a management company. I am looking at Ohio, Tenn, Texas, or the Kansas City area. Does anyone have a turn key/management company they recommend and some pros/cons of these different states. I am in California and out of state investing makes more financial sense, as well as California not being landlord friendly. Thanks

I recommend you skip the turnkey model and just create your own turnkey team. You can do this by developing your Core 4. The core 4 is David Greene’s strategy for long-distance and made up of a realtor, contractor, property manager, and lender. Once you have this team in place, you should be able to confidently invest in any market.

[email protected]614-541-8475Podcast Guest on Show My Job Laid Me Off, So I Replaced My Salary with Rentals
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  • Larry Murrell
    Rental Property Investor · North Bend, WA · Member since 2017 · 5 posts · 4 votes
    6y

    I currently have two houses under contract and closing this month in Memphis with Turnkey Invest.  @James Wachob   and his team have been great to work with! (www.turnkeyinvest.com)

    I also have two houses under contract in Kansas City with Bridge Turnkey.  @Nathan Brooks and his team are fantastic as well!

    1Reply
  • Alfonso Giacomucci
    Member since 2018 · 27 posts · 9 votes
    6y

    @Andrew Z. I have a couple properties with a company that has properties in KC, Indy, and Charlotte. My properties are in Charlotte but the company has been solid. If you're interested, message me and I'll happily put you in touch with them. Good luck!

    1Reply
  • Nathan FisherBusiness Member
    Property Manager · Cleveland, OH · Member since 2020 · 312 posts · 265 votes
    6y

    @Andrew Z.

    I do my investing and property management in cleveland.

    Here's what I love: Houses are affordable, rents are stable and growing, and the housing stock is surprisingly nice and full of character. Building inspectors are fair, and the city has international city amenities, with lower pricing. Opportunity Zones for long term investment which protect against Capital gains.

    Here's what frustrates me: Taxes are relatively high, Uneven distribution of wealth in areas, house flippers that aren't doing quality work. Cleveland Is tough on evictions, and there are occasional lead paint inspections.

    I can make recommendations on professionals for you. Send me a message if you want to talk shop. 

    [email protected]216-245-2901
    Aligned Properties Group4.291 Reviews
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    0Reply
  • Dave Kansagor
    Rental Property Investor · Charlotte, NC · Member since 2018 · 32 posts · 13 votes
    6y

    @Alfonso Giacomucci Interested in who you use in Charlotte. Please shoot me info when you can. Thanks!

    0Reply
  • Remington LymanBusiness Member
    Real Estate Agent · Columbus, OH · Member since 2017 · 6k+ posts · 7k+ votes
    6y
    Originally posted by @Andrew Z.:

    Hello All, I am looking to purchase a turn key property with a management company. I am looking at Ohio, Tenn, Texas, or the Kansas City area. Does anyone have a turn key/management company they recommend and some pros/cons of these different states. I am in California and out of state investing makes more financial sense, as well as California not being landlord friendly. Thanks

    I recommend you skip the turnkey model and just create your own turnkey team. You can do this by developing your Core 4. The core 4 is David Greene’s strategy for long-distance and made up of a realtor, contractor, property manager, and lender. Once you have this team in place, you should be able to confidently invest in any market.

    [email protected]614-541-8475Podcast Guest on Show My Job Laid Me Off, So I Replaced My Salary with Rentals
    Reafco512 Reviews
    WebsiteView Page
    10Reply
  • Nathan Brooks
    Real Estate Investor · Kansas City, MO · Member since 2012 · 397 posts · 187 votes
    6y

    Thanks @Larry Murrell! We appreciate the opportunity sir. We really do have an amazing team, and I'm thankful everyday for them! Appreciate you!

    1Reply
  • Brandon GoldsmithBusiness Member
    Real Estate Agent · Columbus, OH · Member since 2020 · 1k+ posts · 1k+ votes
    6y

    Usually, a lot of value is already lost by using turnkey companies. In markets where turnkey companies are able to exist effectively and efficiently most times gives insight to the future appreciation of the assets. I agree with some of the others that by doing a little bit more work and research you can hold on to a good amount of value with the right partners. @Andrew Z.

    [email protected]614-963-3340
    1Reply
  • Linda LabbePro Member
    Investor · North Bay, Ontario · Member since 2015 · 709 posts · 262 votes
    6y

    We have turn key properties available in \Memphis Dayton and Kansas city all with double digit returns look me up if you are interested all have great property management and have just been renovated

    0Reply
  • Lane Kawaoka
    Rental Property Investor · Honolulu, HAWAII (HI) · Member since 2011 · 4k+ posts · 2k+ votes
    6y

    @Andrew Z.

    You can't go wrong with the list below but I would look at it more from a relationship prospective. Where can you find referrals from real investors to verify an honest provider.

    Birmingham, Atlanta, Indianapolis, St Louis, Kansas City, Memphis, Little Rock, Indianapolis, Greenville, Jacksonville, Tampa, Houston, San Antonio, Little Rock, Milwaukee, Cincinnati, Dayton, Cleveland, Ohio, or other secondary or tertiary markets.

    4Reply
  • Jonathan Oh
    Investor · Las Vegas, NV · Member since 2019 · 499 posts · 259 votes
    6y

    @Andrew Z.
    There are good markets in all those states with great turnkey providers. But I think you should first start with what your goals and then go from there. Turnkeys have its pros and cons, so be sure to know what they are. And as a Californian, the prices in these OOS markets can get real tempting because some properties are dirt cheap. But careful when you do because they're cheap for a reason. Look at the median home prices in the markets and try not to go too far from it. Hope this helps!

    0Reply
  • Rory Coyle
    Rental Property Investor · Los Angeles, CA · Member since 2020 · 43 posts · 45 votes
    6y

    @Lane Kawaoka - Listened to your presentation last night through LAREIC. Thanks for all the great info!

    0Reply
  • Marc RiceBusiness Member
    Real Estate Agent · Columbus Cleveland Dayton, OH · Member since 2018 · 2k+ posts · 1k+ votes
    6y

    @Andrew Z.

    Make sure you run your own numbers, vet your own independent inspectors and contractors.

    You’re going to pay top dollar for turnkey but you’ll save on time. You’ll want a good agent, property manager, contractor, and lender to work with locally.

    Columbus Ohio is solid for appreciation but a little tighter on cash flow relative to Cleveland which is more cash flow and less appreciation

    [email protected]614-363-2787
    Marc Rice | Investor Friendly Agent at Reafco Tailwind Team574 Reviews
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    1Reply
  • James Wise
    Real Estate Broker · Cleveland Dayton Cincinnati Toledo Columbus & Akron, OH · Member since 2013 · 31k+ posts · 20k+ votes
    6y
    Originally posted by @Andrew Z.:

    Hello All, I am looking to purchase a turn key property with a management company. I am looking at Ohio, Tenn, Texas, or the Kansas City area. Does anyone have a turn key/management company they recommend and some pros/cons of these different states. I am in California and out of state investing makes more financial sense, as well as California not being landlord friendly. Thanks

    Saw Cleveland was on your short list. The Ultimate Guide to Grading Cleveland Neighborhoods is definitely worth a read for you. In addition you mentioned KC so you'll want to look over the guide I made for Kansas City, Missouri.

    Lastly while I am here I'd like to share the following punch list with you. This should help you reduce risks as you invest out of state for the first time.

    • 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.
    3Reply
  • Brock Mogensen
    Real Estate Syndicator · Milwaukee, WI · Member since 2018 · 1k+ posts · 907 votes
    6y

    You have the right idea by lining up a PM before doing the deal.  A good PM when investing out of state will be critical.

    0Reply
  • Trampas Tanklage
    Real Estate Agent · San Antonio, TX · Member since 2020 · 63 posts · 37 votes
    6y

    @Andrew Z. I'm a California native relocated to San Antonio. I may be a little biased, but this is a great market to invest in based on relatively low prices, strong employment bases, and a variety of options around town, whether you're looking for cash flow or long-term appreciation.  

    Best of luck in your search! If you have an interest in investing in San Antonio I'd love to help out. I have a couple good PMs that I work closely with.

    0Reply
  • Scott Sherin
    Investor · Greater NY Area. · Member since 2019 · 56 posts · 31 votes
    6y

    When I first begin my OOS search, turnkey seemed to make sense for me as well. I've come to find that you gain a lot more knowledge (which in my opinion is the most valuable outcome of a first deal) by working with an agent, be willing to buy a property in need of work, recruiting and vetting your own team members, etc. This hands-on approach can be more time consuming, but it can often result in better returns and, like I said, a much more thorough learning experience. Send me a message if you'd like to hear more about my process to closing my first deal!

    1Reply
  • Corey M.
    Member since 2020 · 106 posts · 32 votes
    6y
    Originally posted by @Remington Lyman:
    Originally posted by @Andrew Z.:

    Hello All, I am looking to purchase a turn key property with a management company. I am looking at Ohio, Tenn, Texas, or the Kansas City area. Does anyone have a turn key/management company they recommend and some pros/cons of these different states. I am in California and out of state investing makes more financial sense, as well as California not being landlord friendly. Thanks

    I recommend you skip the turnkey model and just create your own turnkey team. You can do this by developing your Core 4. The core 4 is David Greene’s strategy for long-distance and made up of a realtor, contractor, property manager, and lender. Once you have this team in place, you should be able to confidently invest in any market.

    I've listened to the podcast on finding your "core 4," but I haven't heard any clear direction on how an OOS investor can find those people. I renovated my primary residence and had an impossible time trying to track down my contractor, who would disappear in the middle of the day, never finish on time, make excuses for everything. A six week project took six months. Now imagine dealing with that from thousands of miles away. Are you just supposed to reach out to people on BP and trust they're not scammers? I wish there were reputable BRRRRKeys out there who could help identify a house, let the investor pay for the reno while the brrrr key oversees the project, and then manages moving forward. Basically, a passive investment with more upside because you're not buying at retail. I'm surprised there aren't a number of companies out there like this. 

    1Reply
  • Remington LymanBusiness Member
    Real Estate Agent · Columbus, OH · Member since 2017 · 6k+ posts · 7k+ votes
    6y
    Originally posted by @Corey M.:
    Originally posted by @Remington Lyman:
    Originally posted by @Andrew Z.:

    Hello All, I am looking to purchase a turn key property with a management company. I am looking at Ohio, Tenn, Texas, or the Kansas City area. Does anyone have a turn key/management company they recommend and some pros/cons of these different states. I am in California and out of state investing makes more financial sense, as well as California not being landlord friendly. Thanks

    I recommend you skip the turnkey model and just create your own turnkey team. You can do this by developing your Core 4. The core 4 is David Greene’s strategy for long-distance and made up of a realtor, contractor, property manager, and lender. Once you have this team in place, you should be able to confidently invest in any market.

    I've listened to the podcast on finding your "core 4," but I haven't heard any clear direction on how an OOS investor can find those people. I renovated my primary residence and had an impossible time trying to track down my contractor, who would disappear in the middle of the day, never finish on time, make excuses for everything. A six week project took six months. Now imagine dealing with that from thousands of miles away. Are you just supposed to reach out to people on BP and trust they're not scammers? I wish there were reputable BRRRRKeys out there who could help identify a house, let the investor pay for the reno while the brrrr key oversees the project, and then manages moving forward. Basically, a passive investment with more upside because you're not buying at retail. I'm surprised there aren't a number of companies out there like this. 


    If it was easy to do it there would not be as much profit to be made. You need to connect with a good Realtor that is able to refer you other rockstars.

    [email protected]614-541-8475Podcast Guest on Show My Job Laid Me Off, So I Replaced My Salary with Rentals
    Reafco512 Reviews
    WebsiteView Page
    0Reply
  • Corey M.
    Member since 2020 · 106 posts · 32 votes
    6y
    Originally posted by @Remington Lyman:
    Originally posted by @Corey M.:
    Originally posted by @Remington Lyman:
    Originally posted by @Andrew Z.:

    Hello All, I am looking to purchase a turn key property with a management company. I am looking at Ohio, Tenn, Texas, or the Kansas City area. Does anyone have a turn key/management company they recommend and some pros/cons of these different states. I am in California and out of state investing makes more financial sense, as well as California not being landlord friendly. Thanks

    I recommend you skip the turnkey model and just create your own turnkey team. You can do this by developing your Core 4. The core 4 is David Greene’s strategy for long-distance and made up of a realtor, contractor, property manager, and lender. Once you have this team in place, you should be able to confidently invest in any market.

    I've listened to the podcast on finding your "core 4," but I haven't heard any clear direction on how an OOS investor can find those people. I renovated my primary residence and had an impossible time trying to track down my contractor, who would disappear in the middle of the day, never finish on time, make excuses for everything. A six week project took six months. Now imagine dealing with that from thousands of miles away. Are you just supposed to reach out to people on BP and trust they're not scammers? I wish there were reputable BRRRRKeys out there who could help identify a house, let the investor pay for the reno while the brrrr key oversees the project, and then manages moving forward. Basically, a passive investment with more upside because you're not buying at retail. I'm surprised there aren't a number of companies out there like this. 


    If it was easy to do it there would not be as much profit to be made. You need to connect with a good Realtor that is able to refer you other rockstars.

    But if you are OOS, why would you be trusting random people's opinions? What happens when the realtor sells you a home and the contractor disappears, which - let's face it- a good portion do. If you're financing a place and you aren't keeping tabs on a contractor, you're going to bleed money. And you probably wouldn't even know you're in trouble since you're far away. It sounds like a recipe for a major headache, especially if you have a full time job. 

    2Reply
  • Patrick Britton
    Ann Arbor, MI · Member since 2014 · 1k+ posts · 997 votes
    6y

    @Corey M.  IMHO everything starts with having an amazing realtor.  

    An “amazing” realtor isn't just simply great at their job. They have connections. Lots of connections. They should also know everybody you should use and everybody you should avoid. They should have at the ready whole list of home inspectors, property managers, contractors, and should be willing to share all of these with their clients.

    Find an agent in the top 20% in your area in your specific category, such as investment properties, and I'm pretty sure the rest will follow rather easily.

    send me a PM and i'd be happy to connect you with an agent in the top 20% anywhere in the country.  

    0Reply
  • Shawn AckermanPro Member
    Real Estate Entrepreneur · Mid West, East Coast · Member since 2015 · 3k+ posts · 1k+ votes
    6y

    @Andrew Z. why a turnkey company?  I invest 700 miles away from my home market. I source my own deals and created a team that manages my rentals and other investors. You don’t need a T/K company, you just need the right relationships. All the best. 

    3Reply
  • Remington LymanBusiness Member
    Real Estate Agent · Columbus, OH · Member since 2017 · 6k+ posts · 7k+ votes
    6y
    Originally posted by @Corey M.:
    Originally posted by @Remington Lyman:
    Originally posted by @Corey M.:
    Originally posted by @Remington Lyman:
    Originally posted by @Andrew Z.:

    Hello All, I am looking to purchase a turn key property with a management company. I am looking at Ohio, Tenn, Texas, or the Kansas City area. Does anyone have a turn key/management company they recommend and some pros/cons of these different states. I am in California and out of state investing makes more financial sense, as well as California not being landlord friendly. Thanks

    I recommend you skip the turnkey model and just create your own turnkey team. You can do this by developing your Core 4. The core 4 is David Greene’s strategy for long-distance and made up of a realtor, contractor, property manager, and lender. Once you have this team in place, you should be able to confidently invest in any market.

    I've listened to the podcast on finding your "core 4," but I haven't heard any clear direction on how an OOS investor can find those people. I renovated my primary residence and had an impossible time trying to track down my contractor, who would disappear in the middle of the day, never finish on time, make excuses for everything. A six week project took six months. Now imagine dealing with that from thousands of miles away. Are you just supposed to reach out to people on BP and trust they're not scammers? I wish there were reputable BRRRRKeys out there who could help identify a house, let the investor pay for the reno while the brrrr key oversees the project, and then manages moving forward. Basically, a passive investment with more upside because you're not buying at retail. I'm surprised there aren't a number of companies out there like this. 


    If it was easy to do it there would not be as much profit to be made. You need to connect with a good Realtor that is able to refer you other rockstars.

    But if you are OOS, why would you be trusting random people's opinions? What happens when the realtor sells you a home and the contractor disappears, which - let's face it- a good portion do. If you're financing a place and you aren't keeping tabs on a contractor, you're going to bleed money. And you probably wouldn't even know you're in trouble since you're far away. It sounds like a recipe for a major headache, especially if you have a full time job. 

     contractors disappear on me and I am an in-state investor

    [email protected]614-541-8475Podcast Guest on Show My Job Laid Me Off, So I Replaced My Salary with Rentals
    Reafco512 Reviews
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    0Reply
  • Kyle MccawBusiness Member
    Property Manager · Keller, TX · Member since 2011 · 1k+ posts · 1k+ votes
    6y

    @Andrew Z. you gotta watch out for some of these turnkey businesses. I have personally sold properties to some of the big names on this forum. Some of them did their clients right...some not so much. Be sure to get legit references. Each of those markets are different. Texas alone has major differences from city to city. I suggest you find an agent that specializes in investment properties and a property manager. 

    McCaw Property Management4.4909 Reviews
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    2Reply
  • Sakib J.
    Investor · Los Angeles, CA · Member since 2020 · 154 posts · 32 votes
    6y

    @Alfonso Giacomucci

    Would you share me the referral too?

    0Reply
  • Sakib J.
    Investor · Los Angeles, CA · Member since 2020 · 154 posts · 32 votes
    6y

    @Nathan Fisher

    Can you advise what zip codes to focus on for a solid B class neighborhood?

    0Reply
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