Out of state investors please help

[Adam Craig]

For those experience out of state investors....

I am a relatively new investor in Cleveland. I own 4 properties in the suburbs that I have managed by a PM because I run an internet business that takes up most of my time.

The rent/price ratio is good here in Cleveland but I dont see the appreciation potential that I see in other markets.

How do you feel about turn key companies for out of state? Do you use them? It seems like it would be extremely difficult to purchase a property on my own and manage someone to get it rent ready from long distance. Something as simple as being there when utilities are turned on can be difficult from such a distance which seems like turn key might be good.

If you can share your steps involved I would appreciate it.

[Brant Richardson]

I am an out of state investor. If I had good cash flow opportunities like Ohio near by I wouldn't even consider out of state investing. Forget appreciation, go for the cash flow.

I do not use turn key companies because I don't trust them. You have to take their word for it about the location being good, the value of the property, the quality of the rehab, what it rents for, the quality of the tenant they placed before the sale... there's a lot of opportunity for them take advantage of. You need to know the area to not be taken advantage of. But if you know the area, then why pay retail to a turnkey company? They buy houses which they can sell for a profit, not necessarily the houses in great neighborhoods with good schools that will attract quality long term tenants. I have no doubt that there are good turnkey companies out there, but one of my buddies got swindled so I can't help but be skeptical.

If you are interested in Kansas City I have a guy who can help you buy a property under value, rehab and property manage, but I think you would be crazy to go out of state chasing appreciation.