Los Angeles Out of State investors

[Wei Li]

Hi everyone,

Looking to pick the brains of LA investors with experience buying rentals out of state.  Let me buy you lunch/coffee so I can learn from those who have gone through the gauntlet before.

About me:

• Recent homeowner with full-time job in the Valley
• Looking to buy first time rental property sometime late this year/early next year
• Mainly looking for passive cashflow, to supplement income

My questions include:

• What markets did you invest in and why?
• Did you buy turnkey? Why or why not?
• How do you find your deals?
• Best way of financing?
• How did you find a good property manager?
• What are the difficulties in managing long distance?
• Recommendations on PMs, lenders, etc.

Please send me a PM if you're in the LA area and willing to help a new investor out! Thanks in advance!

[Ali Boone]

My answers!

• What markets did you invest in and why? At the time, Atlanta because it was the best market to buy in (appreciation potential, super high cash flow, etc.). However the market is not the same anymore and I don't even recommend it. More cash flow elsewhere in a less saturated market. I am working with buyers buying in Indy, Chicago, Kansas City, and Philly right now.
• Did you buy turnkey? Why or why not? Yes, turnkey, because I had (and have) absolutely no interest in trying to become an expert in areas that I'm both not naturally good at or have interest in...when I could just let some who is good at them and interested in them do it for me.
• How do you find your deals? Through the turnkey providers.
• Best way of financing? Conventional mortgages are by far the cheapest loans out right now and I recommend anyone who qualifies for them to use them. Otherwise, a lot of the turnkeys offer private financing options, which I have used as well.
• How did you find a good property manager? The initial ones came through the turnkey providers and anytime I've wanted to change, I've either gone through BP on here (although no actual luck or good stories coming from that) or Yelp (much better success using that).
• What are the difficulties in managing long distance? If you are using a property manager, it's only an issue of managing the manager. If you manage the property directly, that's a whole other can of worms.
• Recommendations on PMs, lenders, etc.  You have to be talking about a specific market before anyone can really recommend those. They are all specific to the market. But with the lender, be sure you are working with one who is incredibly investor-friendly or you'll never close a property.