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Updated over 1 year ago on . Most recent reply

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Adam Eckhoff
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Purchasing Your First Out-of-State "Turnkey" Rental Property

Adam Eckhoff
Posted

Good Morning,

My name is Adam Eckhoff, commercial appraiser in New Jersey. Quick question for you all... Let's say I search for a $200,000, 2-unit duplex, on Realtor.com located in let's say Columbus, Ohio. Hypothetically speaking, let's assume the duplex generates $500 per month in income (after expenses, management, etc..).


Why would I not just pull the trigger and purchase the property, assuming I can find a management team to take care of it. 

How would i get money back out to purchase another property (how could i leverage it). Do i just save the $500 a month and use that to purchase another one down the road (assuming i living in a perfect world with no repairs/reserves/ cap exp..)

Thanks,

Adam.

Most Popular Reply

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Michael Dumler
  • Real Estate Agent
  • Atlanta, GA
1,685
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1,585
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Michael Dumler
  • Real Estate Agent
  • Atlanta, GA
Replied

@Adam Eckhoff, I know this is a hypothetical scenario, however, this deal doesn't exist unless it's located in a D-class war zone. If you acquire the property at market value, you can't pull any of your money out because the deal only has X% equity. Only buying well below market value or implementing the BRRRR strategy allows you to recoup your capital.

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