Out of state market in 2021

[Fernando E.]

Hi BP community,

I hope everyone’s having a great start of the year

Wanted to get your insights on what market will be cash flowing for either turnkey or SFR. My plan is to finance and put in 20% down, have the property managed by a property manager and I manage remotely from California. I paused on my real estate in 2020 and planning to make my moves in Q2, I'm in my recon and planning stage right now.

I also have a real estate group in FB focusing on the Cleveland market, amazing group but I also wanted to get other opinions for those who achieved some success in other areas. Thanks in advance.

[Ali Boone]

Unfortunately the real question of 2021 for turnkeys isn't which markets will cash flow, but which ones actually have inventory. Turnkey inventory is majorly strapped right now because of all the foreclosure moratoriums preventing access to foreclosures for the turnkey providers to fix up.

There are a lot of markets that can cash flow- Chicago, Cleveland, Kansas City, Indianapolis (although it's getting tighter there), Harrisburg, Birmingham, OKC, Memphis, Jacksonville, Baltimore... But some of those markets are mostly out of inventory (Chicago) or on wait lists (Baltimore) or selling out the minute the properties hit their email lists (Harrisburg, Cleveland, Indy, etc.)

Do you have any other criteria for a market other than whether or not it cash flows? What's your budget and/or preferences for a property? Can make some recommendations for markets that have TK providers with available inventory that fits. Or if you're waiting until Q2 to buy, I'd wait to know exactly who will have inventory then, because it's changing all the time right now.