Turnkey vs OOS Rehab

[Zack P.]

Hey Everyone!

I'm definitely a noob on BP, but have been a landlord for about 5 years.  I'm looking to expand my rental portfolio and wanted to get your thoughts.  

I've talked with several turnkey companies, but my concern so far is that there exists no equity to start, so essentially the finished product is AT or sometimes even ABOVE market price.  I may still go this route, but has anyone done out-of-state buy, rehab, and rent it out?  (instant equity!!!)

If so, how was your experience, is there a company who will help with the whole process?  Or is only way to do this flying out to location, interviewing tons of people, and building a team/network?  

I'm looking in Memphis, KC, Indianapolis, Atlanta, Birmingham, Dallas, Chicago.  But really anywhere is fine as long as the math works. 

thanks in advance

~Zack

[Jason Cory]

I do a version of this in Birmingham for investors. I buy properties that will leave meat on the bone for investors but turn them over to a PM for the renovation so they can work to get it rented as it's being renovated. This usually equates to it being rented as soon as it's ready since I allow the property to be listed for rent on my local Facebook page with 1,600 +/- people looking for a place to rent. I stay involved but in the background to make sure things are happening as they should be. This also helps make sure renovations are completed to the correct standard since the PM can withhold money from the GC until the work is completed properly. 

Out of state investing can be tricky but no one can guarantee rent since investment guarantees are illegal. I use my appraisal background to make sure value is maximized from start to finish for my clients. 

You should always visit the city & meet the PM face to face wherever you decide to invest to see if their operation is professional. That's where you get in trouble long term if you hire a non-responsive or unprofessional PM.