Questions regarding investing in Ohio (Turnkey)

[Simen Gundersen]

Hi! I'm a noob in REI and i' love to get some feedback on my plan here.

First off, i'm located outside of U.S. I currently own one property I closed on in June here in Norway which i'll be moving into in August. I'll be renting out one of the rooms so i'll have almost zero living expenses - which i'm super happy about.

I am however looking to pick up two properties in the immediate future in U.S due to lower prices and better cashflow. Since i'm not in the U.S, i'm thinking i'll go turnkey here.

I have been studying markets and turnkey properties and I have landed on Ohio as market. 1) Anyone got experience, tips or thoughts in/on the Ohio market? Would you reccomend it? I'll be purchasing properties as rentals.

2) My plan is this. Pick up one turnkey property priced around 55K (give or take). I'll be purchasing this with my own cash, so it'll be free and clear. It'll give me a net return of 6 - 7K anually. 

I will be establishing an LLC as i'm again outside of the U.S and acquire it that way. Now my third question is, since that property is free and clear, can I pretty much instantaly fly to the U.S, open a bank account, get a loan on my first property for 70% (?) of what its worth and then as long as I have the remaning 30% of the cost of the new property I can pretty fast pick up one more?

Thank you for reading -- again, i'm spanking new to this so sorry if I have misunderstood anything. 

[Darrin Carey]

You can put the property in the LLC at closing, and do it a loan simultaneously. However,

Loans that small would be better done by a local community bank. That will be difficult without an Americsn style credt score. There are a couple lenders I know who do them, but their fees are fairly high for a loan that size.

Honestly, I would make offers with seller financing and 20, 25% or more down. That may eliminate most traditional turnkey providers, but leaves open a lot of local investors who are retiring or otherwise shifting their strategies.

I've bought and sold several locally that way.