New Southern California Investor. Need Advice !

[Shane Elias-Calles]

Hello Everyone,

I am a new investor who lives in southern California, which we all know is not an ideal market to purchase rentals for cash flow. I am looking to buy my first property this year. Would love to receive any advice on purchasing out of state? 

Would you all recommend going with a turnkey provider? 

Thanks,

Shane

[Jonathan Oh]

It depends on what your goals are. Majority of turnkey buyers are investors who are mostly looking for a place to put their cash. These are usually busy professionals who already have a great career and has no interest in spending the necessary time to build teams, analyze deals, manage rehabs, etc. Expect to pay at or above market price with turnkeys. You won't have much equity day 1, but you will have cashflow. If you're limited on cash and want to expand quickly, turnkey is probably not the right vehicle. If that is the case, get educated, practice analyzing deals, and build your networks. Research different markets and zone in on one. Expect to make a ton of calls to agents, lenders, and property managers in that market. Get familiar with the neighborhoods, look at the macros, and connect with other investors in the area and see what they are doing. I am sure you'll here this over and over, but the most important thing you need is a great team. Hope this helps.