Starting REI with out of state SFR

[Krizelle Pum]

Hello everyone,

We are getting ready to start investing in real estate out of state...primarily buy and hold SFRs and small multi-families. My husband and I are partnering up with 2 friends (another married couple). We are located in Long Beach/Cerritos in California. We all work full time jobs and our main goal is to make passive income.

We were initially going to start an LLC, but our tax guy advised us not to and after reading more about it on BP it, we're leading more into just creating a regular partnership. Any thoughts on this and can you guys refer us to any real estate CPA and lawyers we can talk to to lead us to the right decision?

Also, because of our situation and goals, we are really interested going through a turnkey property company to get started. Has anyone done business with OutYard Invest? If so, how was your experience? And does anyone have a company they would suggest? 

Thanks so much in advance! We're new to this and would really appreciate any comment/advice/referrals. 

[James Gates]

Hey Krizelle!

My wife and I are also just starting out investing out of state, we live in the Inland Empire. We considered partnering with another couple who have similar goals, but decided against it for many of the reasons stated already in the thread. If a deal comes along where we don't have the financing to do the deal ourselves, we would consider partnering. But for cheap cash flowing SFH the partnership is seems to be more hassle than it is worth.

If you ever want to talk out of state real estate please feel free to reach out! My wife and I are in Orange County all the time and are always up for some strategic planning and story swapping. Best of Luck!

-James