Advice for buying a rental property
Hi BP. I live in Los Angeles where my wife and I have been having trouble buying a home for our residence. We took a cash out refi on a rental property that she owns in Murfreesboro TN, which we were going to use for a downpayment. We've been in escrow twice now, this second time is looking likely to fall out on Monday. It's starting to look like we are priced out in our market, as anything that we can afford always seem to come with major flaws.
We are considering changing direction and buying a rental property out of our Los Angeles market. I would like to hear some feedback and advice on how we should proceed. As I said my wife owns a condo in Murfreesboro TN that is valued at $109K. It is about $200 a month cash flow positive. She owned the condo outright, but we took a cash out refi for 80% of which we have about $75K remaining. So like I said we are considering using this money to buy another rental property. Cities we are considering include, but are not limited to Pittsburg, Philadelphia, Memphis, Atlanta, Milwaukee, and Riverside County, CA. Any advice on how to proceed? Keeping in mind that I won't be familiar with any of these areas should I use an agent or let the seller's agent double end it? What about turn-key rentals? That seems to be a hot button issue. If yes on turn key, would like to know specific reputable companies to buy from. Any other advice appreciated.