All Forum Posts by: Jonathan Rivera

Quote from @Jonathan Rivera:

As an out of state investor, my goal is to purchase properties long term for cash flow to start off. I know there’s pros & cons against this turnkey strategy.

For me i personally felt since I'm investing remotely, cutting out the rehab part, dealing with contractors would be less of a headache going into my first rental.

I also understand that I won’t have any appreciation to start off or built in equity.

I just need some advice here regarding turnkey properties and the best way to go about it.

To me I feel like this can be a smart move starting out until get comfortable in the market I’m in & I’m able to build connections overtime and eventually I can really do the whole BRRRR strategy.

Please let me know your thoughts whether it’s good or bad. Peace ✌🏻 

If you're interested in new construction out of state, you most certainly can have built in equity with turnkey. That's how I did it. I'm from Jersey too Jonathan, hit me up if you want to get some ideas.

Hey Jonathan, I'm personally not a fan of the turnkey model. It's just not for me and my goals.

You hit the nail on the head... there's no equity when you buy like this and you're paying up for convenience. But if you understand that going in and it works for you, it can be a solid way to get started.

I do BRRRR's in Detroit from California and have a great team there that I work with. I prefer this model because you're forcing equity and creating wealth from the start.

I like turnkey for house hacking. To live rent reduced, net 0 or potentially cash flowing positive is attractive so I can focus on other things. You will pay a premium, but stabilization is good. For some, stabilizing a property and learning the rental path can be difficult in tandem, so for house hackers I say go turn key. Turn key also works for investors that are absentee if their goal is to park money/defer on taxes. It just depends on your strategy. 

@Mimi Lieder

For out of state I would look at private lending. For this you need eyes on property but do not have to deal with contractors or managing it from afar

When you say private lending, are you speaking on lending money to people in general?

Purchase well situated property in high barrier of entry markets. It may not lead to the best cash flow but it's the safest acquisition parameters. I am afraid if you are chasing cash flow and associate cash flow with lower risk, you will wind up purchasing in a lower barrier of entry/lower cost market where cash flow may seem better on the surface but the real estate is riskier unless the market experiences significant appreciation.  

Tough one to answer without doing a deep dive. For me, I'd try to find a market that you can find a move-in ready home with potential to appreciate and cashflow. And if you have the budget for it, I recommend furnishing the rental because it will increase the income you can make on it. And I only say move-in ready because it reduces the risk of issues with contractors, repair costs, etc.

Quote from @Jonathan Rivera:

Hey, My name is Jonathan Rivera & I’m from NJ. Im currently a semi truck driver, I’m 32 years old & I want to connect with investors who invest remotely or even here if it makes sense . I know that NJ is pretty expensive & isn’t landlord friendly for the most part . My goal here is to able to come up with game plan, learn & implement information that is given..

Any thoughts on what I will need to invest remotely. What resources i will need in my corner to be able to invest remotely? My plan is to find discounted properties & do the BRRR strategy & potentially have section 8 tenants.

I recommend you read this article on OOS investing. It explains the importance of creating your core four. You will need to get a local, rockstar Realtor, contractor, lender, and property manager.

https://www.biggerpockets.com/blog/core-four-real-estate-tea...

I invest locally in Columbus, Ohio