Out of State, Turn-key empire (and other general musings)

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Hi all-

I'm in the Seattle area where everything appears to be clad in gold, including the cardboard boxes from Amazon, which explains why it's so danged expensive here for real-estate. Including the properties that have nothing but cardboard boxes from Amazon on them.

I have been following the BP Podcasts and looking through the forums, and I've seen multiple threads on turn-key solutions and investing out of state, as well as the pleasures and perils of dealing with property management companies. In addition, I've seen many a topic on the challenges of getting started, dealing with renters, rentals, and your own full-time job, and others dealing with setting goals and achieving them.

So I thought I'd throw this all together and create the most awesome thread of all-time (or at least until somebody else comes up with something cooler...).

I have been using the BP calculators on Roofstock.com properties following both the BRRRR and standard Rental philosophies espoused both on the site and within the podcasts. I am developing a strategy that accepts a 9.5% cash on cash return (minimum) in exchange for the advantages that Roofstock has and the amount of work that they do up front in researching/accepting the property. My goal is to not to be able to quit my job, but rather to start buying properties that are in markets that are appreciating by around 3% every year and starting to build equity in them. As much as I love the BRRRR story, I simply do not have the time at this point to delve into that arena. I need to get rent-ready properties that don't need major repairs/remodels.

My challenges are primarily time based, as in I hardly have any extra. And while initial cash down won't be that much of a problem, I can do a lot more when the houses are around $70k-$110k, than I can when the cardboard box starts at $300k. In addition, my own personal risk is less if I have a property at $70k that goes completely sideways, than one at $300k. 

I would love to know what people think about this, or if anybody has done this and has sage advice. All replies appreciated, with bonus points for really good puns. :-)

[Ken P.]

If you are betting on a particular housing market to appreciate x% a year, why not just invest in the stock market? If you're investing in real estate, unless it is value add forced appreciation, invest for cash flow, and any appreciation beyond the rate of inflation is just icing on the cake.