Investor · Los Angeles, CA · Member since 2017 · 16 posts · 6 votes
Hi everyone,
New(ish) to real estate investing. I was interested in turnkey out of state (I'm in southern California) properties to increase my passive income. I have several investments with realty shares, and looking to diversify. I was looking into the Milwaukee/Indianapolis area, but open to suggestions. SO much experience and know-how on this site. Not looking for any crazy monthly returns, just a moderate amount to boost my passive cash flow. Thanks!
Investor · Los Angeles, CA · Member since 2017 · 16 posts · 6 votes
9y
Being out of state, would using something like Homeinvest be beneficial? Any advice on specific areas to look at in the area, and from experience, what is the cash flow from an average deal in in that market. I would also like to talk to people who have done turnkey investments in the areas I listed for some advice. Thanks
Specialist · Indianapolis, IN · Member since 2014 · 670 posts · 352 votes
9y
@Lee Warren we invest in Indianapolis as well as about 9 additional markets. If your specifically looking at turnkey as your investment vehicle then the area is not as important as your team. Don't get me wrong, each market brings pros and cons, however I would rather invest in a sub par market with a stellar operator on the ground than a prime market with a sub par operator. Happy to provide more details if you need references or additional.
Investor · Los Angeles, CA · Member since 2017 · 16 posts · 6 votes
9y
@Jeff Wallenius Thank you, I visited your site and would love some additional details.
@Lane Kawaoka Thanks phenomenal, did you use one company for all of your properties or did you do all of the ground work yourself? I'd love to hear some tips for a new comer
Being out of state, would using something like Homeinvest be beneficial? Any advice on specific areas to look at in the area, and from experience, what is the cash flow from an average deal in in that market. I would also like to talk to people who have done turnkey investments in the areas I listed for some advice. Thanks
Could be. Most of the turnkey guys will sell you suburban SFHs. They are good for what they do which is produce cash flow. But they are basically fungible, vinyl wrapped boxes and they will never appreciate. Not a bad approach for a passive out of state investor though. Easy to find, easy to rent, easy to maintain.
Average cash flow varies too much to say, depends on asset class, purchase price, leverage etc. Typically on these you're spending 50-70 and renting 700-850.
I take a different approach as a local, I do up and coming areas in the urban core (Mapleton Fall Creek, Bates Hendricks, a few others), pre-1930s builds. It's more difficult and you kind of have to be a local to take this approach, but there are a couple of turnkey companies with properties like this.
New(ish) to real estate investing. I was interested in turnkey out of state (I'm in southern California) properties to increase my passive income. I have several investments with realty shares, and looking to diversify. I was looking into the Milwaukee/Indianapolis area, but open to suggestions. SO much experience and know-how on this site. Not looking for any crazy monthly returns, just a moderate amount to boost my passive cash flow. Thanks!
Hello Lee,
Turnkey investments are a great way to earn passive income! It is also a great way to invest in another market when you live in one that does not generate a good enough ROI.
Real Estate Coach · Venice Beach, CA · Member since 2012 · 6k+ posts · 3k+ votes
9y
Hey Lee! I'm in LA too (Venice)....where are you?
I've always bought turnkeys out-of-state. Happy to chat about my experiences and good markets and all that anytime if you want to message me or email me (email addy in my profile).
West Hollywood, CA · Member since 2016 · 235 posts · 72 votes
9y
Hi Lee and welcome to BP!
Out of state is definitely the answer for cashflow when living in California. I live in LA too but invest in Tampa/Orlando. Both markets are very hot for appreciation but also carry positive cash flow.
There are numerous turnkey companies down in those areas for cash buyers.
Real Estate Coach · Venice Beach, CA · Member since 2012 · 6k+ posts · 3k+ votes
9y
Hey Lee, did you send it? I didn't see a message from you but maybe it was just the request by itself (I should have accepted it). Shoot me a message and we can chat anytime.
Real Estate Agent · Fort Collins, CO · Member since 2016 · 246 posts · 142 votes
9y
Hey @Lee Warren, welcome! I have had a great experience with James Wachob in Memphis. When I was picking a TKP I got references and I was looking for someone who would steward my investment the same way I would if I wasn't long distance. It's also a plus if the provider has the flexibility to do something like a BRRRR if that's what you're interested in.
I'm from California and go to SD often so I might diversify with a short term rental in your neck of the woods if I can find the right deal!
Investor · Herndon, VA · Member since 2015 · 185 posts · 74 votes
9y
@Lee Warren I have few in Indy and its a great cashflow market with some appreciation potential in upcoming neighborhoods around downtown. Someone mentioned that when investing out of state, its not about market so much as much as it is the boots on your ground. Invest with the right company with stellar track record and you will thank yourself one day.