Ok, I say yes to turnkeys, but where?

Question

Hi BPers,

HELP...

Situation: I'm new to investing, been doing hours and hours of DD on turnkey investing. Decided turnkey is the way I want to invest. I like Jacksonville and San Antonio markets. I want to buy and hold for cash flow. I only have 25k to invest. Can anyone recommend a market that offers a good ROI for the amount I have to get started with?

Alex Craig · Answer

You will get a lot of opinions.  Midwest homes are typically a lot older, but typically higher cash flow.  I would think Jacksonville would be an opportunity to invest in newer homes, but maybe sacrifice some cash flow. I traveled there 4 times a year from 2002 to 2008 and really liked the city.  Team in my opinion is more important then market; also buy somewhere that you like to travel to so that you have a reason to take a weekend trip and write it off.

Manny Cirino · Answer

@Rodney Watson I say take your shot at a fix n flip and leverage the cash you have until you have a bit more to invest. I think with one good flip you would be ok to invest in the Jacksonville Market.

Rodney Watson · Answer

Thanks guys, lots,of great advise. Should I apply for the pre approval in my home state or the property's state? Or does that not matter?

Ali Boone · Answer

Assuming you can get a mortgage (otherwise you may be kind of stuck for turnkeys), I'd say Kansas City would be an awesome bet right now. KC is a great combo of good returns + great market fundamentals + low entry prices + quality turnkey options.

Larry Fried · Answer

@Rodney Watson Hi, With that starting amount of cash available, I would suggest you seriously consider Philadelphia, as it is close to you, and has some good options, and low property taxes.

Derrick Craig · Answer

@Rodney Watson

Look to Leverage that money and purchase 2 or 3 Turnkey properties in the Mid-west with Conventional Financing.

Chris Romany · Answer

Here in Orlando, there are a number of turnkey opportunities available due to the city's incredible growth rate. I would recommend you see a good mortgage broker first, and find out how much you qualify for on an investment home in Central Florida. As an example, I just finished renovating a home in Lakeland Florida which qualifies for USDA financing, the biggest benefit of which is 0% down. Here is the video link.

Once you know what you qualify for, your search becomes much easier. You also have the option of looking for seller financed properties, but these are much less in number and harder to locate.

Best of luck to you.

Engelo Rumora · Answer

Check out the Midwest,

My top picks are Ohio, Michigan and Indiana.

Best BANG for you buck can be found in those states IMO

Thanks and much success

Aaron Cooper · Answer

There are lots of options.  First do you have a rental home now that you have had for 2 years or more? Basically you need to show you have been a landlord on tax returns for the banks to use the income from your rental homes towards your Debt to income ratio when qualifying a new purchase.  If not there are still options, but that will give you the most money and options.

From there I would recommend getting prequalified with a bank and see what they are willing to loan you for a new purchase of an investment home based on your current financial situation.  It maybe 10,000 or 200,000 either way you know your budget to work with.  Once you have that you can figure out a price point you can invest in and drill down from there.

Ok, I say yes to turnkeys, but where?

Most Popular Reply