Investor · Los Angeles, CA · Member since 2019 · 26 posts · 10 votes
Hi there, I'm super new to real estate and am excited to be joining the BP community where I hope to build my network as well as to educate and learn all about rental property investing. (Have been educating myself mostly through Podcasts,BP forums, blogs, videos, etc.)
My boyfriend, Mark who is also using BP, and I are partnering up to reach our goal of financial freedom! We currently live in Los Angeles, CA where as most of you know is tough to find good investments at a decent price. We are interested mainly in TurnKey properties, as we are still working full time and are looking for out of state properties. As of now we are looking at properties in Indianapolis, Cleveland, Detroit, and Tennessee. Our price range is about 65k to 70k.
Would love to get any pointers or any advice you can give to help!
Turn key provider · San Jose, CA · Member since 2010 · 4k+ posts · 3k+ votes
7y
@Michelle Truong You didn't say which cities in TN you are considering but of the other three, I think that Indianapolis is by far the strongest. Not only does it cash flow well but it also has a growing population and job growth. Both Cleveland and Detroit have shrinking populations. I wouldn't recommend going under a $70K price point and less than $750-$800 rent on a 3br however. Under $70K and you're going to end up in rougher neighborhoods. Indy can vary neighborhood to neighborhood so you have to know the areas well or have someone you can trust who knows the area. We've been active in Indianapolis since 2010 and know it well. Feel free to reach out if you need some help.
Hi there, I'm super new to real estate and am excited to be joining the BP community where I hope to build my network as well as to educate and learn all about rental property investing. (Have been educating myself mostly through Podcasts,BP forums, blogs, videos, etc.)
My boyfriend, Mark who is also using BP, and I are partnering up to reach our goal of financial freedom! We currently live in Los Angeles, CA where as most of you know is tough to find good investments at a decent price. We are interested mainly in TurnKey properties, as we are still working full time and are looking for out of state properties. As of now we are looking at properties in Indianapolis, Cleveland, Detroit, and Tennessee. Our price range is about 65k to 70k.
Would love to get any pointers or any advice you can give to help!
Los Angeles, CA · Member since 2019 · 148 posts · 127 votes
7y
Hi Michelle,
Welcome aboard! I'm sure there are some good turnkey providers out there. Be sure to vet them and ask other members for their thoughts. If you are considering Morris Invests, for example, you'd be wise to learn from others horror stories.
Investor · Los Angeles, CA · Member since 2019 · 26 posts · 10 votes
7y
Thank you for the warm welcomes everyone!
@Ric Ernst Thank you for the advice! Funny enough, Morris Invest was one of the first videos I watched that got me interested in REI. Then I looked him up and there were so many reviews that made me think twice. I've also done some research on TurnKey Properties and I've got some mixed reviews therefore I've stopped and really considered going with the BRRR strategy instead. Still trying to figure it out.
Los Angeles, CA · Member since 2019 · 148 posts · 127 votes
7y
Yeah Morris Invests has a podcast that serves to attract people to their turnkey business. I've listened to many of them and actually did end up calling them. The properties they were pushing as B class were actually D or F class and being sold far above market price. And, despite their claims that they have an office in Indy, they in fact do not.
If you want to go turnkey, PM me and I will share a contact that is doing turnkey in Anderson. Unlike Morris, he puts his house on the market AFTER they are rehabbed and ready to rent. They are pretty cheap and the returns look pretty good. I personally am not buying these but they look good on paper.
One thing to keep in mind with turnkey...the buy in cost is typically around market value. That isn't a bad thing and you will cash flow as long as you do your homework. However, you won't likely be able to pull equity out of your properties. There isn't much appreciation in these areas. Appreciation generally has to be manufactured by purchasing houses on the cheap and adding value to them through rehab.
Hi there, I'm super new to real estate and am excited to be joining the BP community where I hope to build my network as well as to educate and learn all about rental property investing. (Have been educating myself mostly through Podcasts,BP forums, blogs, videos, etc.)
My boyfriend, Mark who is also using BP, and I are partnering up to reach our goal of financial freedom! We currently live in Los Angeles, CA where as most of you know is tough to find good investments at a decent price. We are interested mainly in TurnKey properties, as we are still working full time and are looking for out of state properties. As of now we are looking at properties in Indianapolis, Cleveland, Detroit, and Tennessee. Our price range is about 65k to 70k.
Would love to get any pointers or any advice you can give to help!
Hope to connect with you all =)
-M
Michelle.
I live in LA as well and I invest for cash flow out of state in Memphis, Cleveland, and Birmingham in the same price point.
There are some great investments out there which can help you achieve your cash flow goals!
Turn key provider · San Jose, CA · Member since 2010 · 4k+ posts · 3k+ votes
7y
@Michelle Truong You didn't say which cities in TN you are considering but of the other three, I think that Indianapolis is by far the strongest. Not only does it cash flow well but it also has a growing population and job growth. Both Cleveland and Detroit have shrinking populations. I wouldn't recommend going under a $70K price point and less than $750-$800 rent on a 3br however. Under $70K and you're going to end up in rougher neighborhoods. Indy can vary neighborhood to neighborhood so you have to know the areas well or have someone you can trust who knows the area. We've been active in Indianapolis since 2010 and know it well. Feel free to reach out if you need some help.
Los Angeles, CA · Member since 2014 · 2k+ posts · 515 votes
7y
Hello, @Michelle Truong. Thank you very much for reaching out to the BiggerPockets community. It’s a good start towards successful deals. Congratulations and best of luck on your future endeavors.
Real Estate Agent · San Pedro, CA · Member since 2019 · 253 posts · 128 votes
7y
Hi Michelle, i'm also new to real estate and looking to invest out of state while working full time. I was originally interested in turnkey, but the more i educate myself the less i want to go the turnkey route. It just all depends on what your goals are!
Start reading (if you're not already), i'm trying to make it through half of these books within the next few months:
Investor/RE Broker · Eugene, OR · Member since 2014 · 3k+ posts · 968 votes
7y
@Michelle Truong My first bit of advice is to avoid the price range you gave. For turnkey properties go a little higher, to what will get you $900 plus in rent (I actually prefer $1,000 plus). In most markets these days that is going to mean $85k or more for turnkey. The reason is that the price range you outlined is likely to put you in C or worse areas and those can be very difficult to manage effectively. You want to leave those for local investors.
Thank you for the advice! I'm turning away from Turnkey and now focusing more on multifamily. I will definitely look at the lists of books and start reading. My boyfriend just ordered a copy of "The Book on Rental Property Investing". Looking forward to getting more educated.
Investor · Los Angeles, CA · Member since 2019 · 26 posts · 10 votes
7y
@Larry Fried Thank you for the advice! Will definitely avoid low costing properties. We definitely would like the rent to be higher for a better cash flow.
After doing more research in turnkey properties, my boyfriend and I have decided to shift to multifamily rental properties.