All Forum Posts by: V.G Jason

Hi Juan, One of the easiest ways of scaling in real estate today is to invest in turnkey properties out of state. If you have a busy 9-5 routine but have the money to get started and don't have enough time, turnkey companies provide some of the best resources to scale your portfolio. I have used that strategy so feel free to reach out if you want to discuss.

What are some truly reputable turnkey providers?

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What do the laws state? Whatever they are simply state then do them.

Don't engage in any back and forth banter. He's playing you.

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Quote from @Jewel B.:

Quote from @V.G Jason:

Quote from @Jewel B.:

Quote from @Drew Sygit:

@Jewel B.

Your biggest question shouldn't be WHERE to invest, but HOW you will invest!

Many OOS investors set themselves up for failure because they don't truly take the time to understand:

1) The Class of the NEIGHBORHOOD they are buying in - which is relative to the overall area.

2) The Class of the PROPERTY they are buying - which is relative to the overall area.

3) The Class of the TENANT POOL the Neighborhood & Property will attract - which is relative to the overall area.

4) The Class of the CONTRACTORS that will work on their Property, given the Neighborhood location - which is relative to the overall area.

5) The Class of the PROPERTY MANAGEMENT COMPANIES (PMC) that will manage their Property, given the Neighborhood location and the Tenants it will attract - which is relative to the overall area.

6) That a Class X NEIGHBORHOOD will have mostly Class X PROPERTIES, which will only attract Class X TENANTS, CONTRACTORS AND PMCs and deliver Class X RESULTS.

7) That OOS property Class rankings are often different than the Class ranking of the local market they live.

8) Class A is relatively easy to manage, can even be DIY remote managed from another state. Can usually allot 5-10% vacancy factor and same for maintenance.

9) Class B usually also okay, but needs more attention from owner and/or PMC. Vacancy and maintenance factors should be higher than for Class A as homes will be older, have more deferred maintenance and tenants will be harder on them.

10) Class C can be relatively successful with a great PMC (do NOT hire the cheapest!), but very difficult to DIY remote manage. Vacancy and maintenance factors should be higher than for Class A or B. Homes will have even more deferred maintenance and tenants will be even harder on them.

11) Class D pretty much requires an OWNER to be on location and at the property 3-4 times/week. Most quality PMCs will not manage these properties as they understand most owners won’t pay them enough for the time required and even then it’s too difficult successfully manage them.
***Only exception is if an owner has plan & funds to reposition Class D to Class C or higher.

https://www.biggerpockets.com/forums/776/topics/960183-what-they-dont-tell-you-about-cheap-rental-properties?highlight_post=5562799&page=3#p5562799

Also, SERIOUSLY consider - do you really have the time to be a DIY landlord or should you hire a PMC?

Good luck with whatever you decide😊

Please send us any feedback via email, as we do not use the DM feature here.

Sounds like a Class C property in a Class B area that I can fix up and rent out may be best for me :)

Fix up OOS. That seems hard, how do you plan to do that?

For one, an excellent team. I'm also more than happy to travel there to check in. And I do have a few friends in MC as well.

You'd have to station there to babysit for a period.

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If personal finance and credit are not where they are supposed to be, fix that before you start investing perhaps?

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Fly out and see the property once you narrow it down. There's nothing like getting an idea of how it situates. What if it's a great house, but it's a block behind the railway or at a stoplight intersection so heavy car traffic getting in/out of the house. Or other cosmetic stuff you notice that just rub you the wrong. I'd definitely get a wide, aggregate set of markets. Narrow it down to the few markets that offer plentiful of options and pay them a visit. Don't go to visit just one house, but if you find a market say Austin and you saw 8-10 investable houses. Book a trip. It's going offer a lot of peace of mind.

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San Diego, California