First TIme investor Out ofState Rental Turnkey in Class B or C, with Light Value-Add?

Hi Steven - great question and welcome to the journey!

I was once in a similar situation as you with out-of-state investing, I can say this from experience: your property manager can make or break your deal. It’s absolutely critical to find someone you trust, who communicates well, aligns with your goals, and doesn’t hit you with hidden fees. Unfortunately, I’ve seen some property managers treat rentals like their profit centers rather than helping you succeed as the investor.

For my your first out of state deal, I recommend a turnkey property. When I first started out of state investing, I didn’t have a local team in place for rehabs, so turnkey made the most sense.  It let me focus on learning the process without juggling contractors from a distance. It was a lower return than riskier deals might’ve offered, but the stability was worth it for a first step.

As you build relationships and gain confidence with your market and your team, you’ll naturally feel more comfortable taking on light value-add projects. The key is not to rush that part, but rather build your foundation first.

Whatever you choose, make sure you fully vet your PM. Ask about their fee structure, how they handle maintenance requests (make sure you approve all request), vacancy rates, tenant screening, etc. And don’t be afraid to walk away if something feels off.

Let me know if this was helpful.