Questions and interest in turn-key properties

[James V.]

I'm new to the site and have been pouring through the content for the past two weeks.

My wife and I are interested in out-of-state rental investment opportunities (we live in the Southern California) and need to match the right market and team with our goals.

Our position:

• We are focused on long term buy/hold investments
• Good neighborhoods are KEY (I don't fully appreciate      the rating scales yet A, B?)
• Financials must calculate
• Prefer 20 year mortgage terms

What we (think) we need/want:

• Turn-key properties
• Favorable local market conditions and trends
• Local team of proven professionals (there seem to be      plenty of folks that are more marketer than player)
• Steady stream of rental income in 20 years

First steps: Where should we be looking – Who should we be taking to?

If we choose to buy multiple SFR's, do you diversify markets, or find a team you trust and stick with them?

Cheers - James

[Brie Schmidt]

Originally posted by @James V.:

I'm new to the site and have been pouring through the content for the past two weeks.

My wife and I are interested in out-of-state rental investment opportunities (we live in the Southern California) and need to match the right market and team with our goals.

Our position:

• We are focused on long term buy/hold investments
• Good neighborhoods are KEY (I don't fully appreciate      the rating scales yet A, B?)
• Financials must calculate
• Prefer 20 year mortgage terms

What we (think) we need/want:

• Turn-key properties
• Favorable local market conditions and trends
• Local team of proven professionals (there seem to be      plenty of folks that are more marketer than player)
• Steady stream of rental income in 20 years

First steps: Where should we be looking – Who should we be taking to?

If we choose to buy multiple SFR's, do you diversify markets, or find a team you trust and stick with them?

Cheers - James

 Welcome to BP!  There are hundreds of providers in 20+ markets across the US.  I would start with the market and narrow it down from there.  What is important to you?  Population growth? Job growth? Low taxes? Diversified employment?

Once I had my 2-3 top markets then I would drill down to the provider.  I talk to a lot of TK buyers and many of them say they choose their provider based on their gut feeling and how much they felt they trusted them.

I also strongly suggest going out to see these markets and the properties that are available.  I have never talked to someone who regretted going out to a market, only those who regretted not going.  

Also - you may want to reconsider the 20 year loan thing. That will show a higher payment when you go to apply for future loans, so it will limit your approval down the road. You could always get a 30 year loan and pay it like a 20 year (and run your numbers like it was a 20 year) but for every $500 on your credit report that is $100k of house you can't buy. And trust me, as you grow your DTI ratio with the bank becomes more and more challenging