Turnkey/Buy and hold

[Joe Crooks]

HI BP just wanted to introduce myself Im new to investing looking to buy my first rentals I have been researching a few markets Memphis, Akron, Columbus, Dayton, Toledo ext. just ready to get my feet wet looking for cash flow to eventually supplement my retirement. I would appreciate any advice from those of you already doing it! Thanks have a great one!

[Mark Ainley]

@Joe Crooks Congrats on your plan.  Be sure to understand your market and the local economy.  A lot of turnkey buyers are paying top dollar in some rough areas where if the bottom falls out those areas will be first to collapse or not appraise. 

MUST READ TIPS: 

1.Turnkey is more about the property manager you hire than the property you buy.  We are watching a lot of turnkey buyers in Chicago that 1-3 years after their initial close the property and the buyers investment has collapsed due to poor management. It is now costing them a year or twos worth of income to get back on track.

2. Get a home inspection. Almost anywhere you are buying in the midwest you are buying 50-120 year old homes and they come with their issues and you want to make sure you are not buying those problems. Replacing a section of floor, door, or light fixture is pennies compared to the $7,000-$10,000 tuck point job the seller never completed. 

3. Find previous buyers from that provider and get feedback. Sellers tend to not like to hand out previous buyers info for privacy issues but BP is a great place to do that. 

[Solicitation Removed by Moderator]