Need some suggestions for a newbie from the Bay Area.

[Harini Rajendran]

Hello BP members,

I am a newbie here wanting to close atleast 1 deal by the end of this year.

I am interested in buy and hold, cash flow rental properties and planning to start off with a Single Family Residence. Since I live California and the prices are so crazy here, I have decided to invest out of state in some buyer’s market. Is starting with a turnkey property a good idea? I am thinking of markets like Cleveland or Detroit for my first deal. My budget is around 75 - 90 k for a Single family. What do you guys think? Any suggestions would be great. 

Thanks, 

Harini

[Andrew Johnson]

Harini Rajendran Do you have any other reason to visit those markets? The reason I ask is that if your property purchase price target is $90K you probably have around $20K in capital (20% down + some for closing costs). A round trip plane ticket, hotel, rental car, etc. just to view properties that you like on paper could end up costing you $1K - $2K. Potentially spent 10% of your investable cash to vet a property is a huge percentage. Not to mention you might want to visit a time or two during the year. Granted you can look at turnkey management companies and buy based on internet pictures...I just wouldn't do it. If you can find an market that's attractive to you that you are going to anyway it can really help to mitigate your initial costs.