Complete Noob From Oakland, CA

[Paul Lewis]

Hello folks - long time lurker, finally decided to actually create an account and introduce myself.

Long story short, I've decided that I'm going to buy some investment properties. I've spent way too much time in the 'analysis paralysis' stage, and it's time for me to just execute and be OK with not trying to get everything perfect on my first deal.

I'm primarily interested in cash flow, and I intend to be reasonably hands off (I have a full time job, so I don't have a lot of spare time). Also, since I live in the Bay Area and the rent to purchase price ratio is so insane here, I've decided that I'm going to invest out of state.

So, here's my plan. I'll move pretty quickly on one turnkey out of state deal from a reputable provider here, just to get my feet wet. I know that I could get better returns by doing more of this myself, but I'm going to use this first deal as my attempt at learning the ropes. I'm reaching out to some of the usual turnkey folks on here over the next few days, with a view to making my first deal as quickly as possible.

I suspect that there are a bunch of newbie lurkers like me on this forum who are on the edge of taking that first step and executing on their first property. I'll post my experiences as I go through this first deal - you'll either get a blueprint for how to buy your first out of state turnkey property, or you'll get an amusing cautionary tale of exactly what not to do. Let's see how it shakes out!

Meantime, thanks to everyone who takes the time to post here - I'm really thankful for how much I have learned by lurking on here for the past few months. It's a great community, and I hope that I can give back even a small amount of the value that you guys have shared with me.

[Andrew Fingado]

@Paul Lewis Welcome. I'm just north of you in Richmond, and I am in the same boat as you.  Had analysis paralysis for a long time and tried to make it work in my own area.  The cash flow wasn't here (at least the type of cash flow I desired), and wholesaling has dried up a lot and I couldn't find anything to flip.  

So i'm doing a JV (joint venture) right now with an out of state provider who I trust and respect, and I feel like i'm in good hands. I thought about turnkey as well. I think if you go with a reputable turnkey company it's probably a good way of getting your feet wet and getting some decent returns. Sure, you may not get the type of cash flow that locals are getting, but it's still above and beyond what you could get out here in our market. Plus the place is fixed up to a great extent and it's pretty hands off, so there's a premium you are paying for more peace of mind.

Just remember to check on the neighborhoods, I cannot stress that enough.  You probably know this but I just want to reiterate:  Call local brokers/property managers, local investors, and ask them about the neighborhood.  Use sites like city-data and look up neighborhood info, crime rates, etc.  I have seen some turnkey providers say an area is a "B-" neighborhood and a simple google street view shows boarded up houses and the place looks like a war zone.  I have also looked at areas on google street view that look good, and then once I looked at crime maps and talked to people, I realized the area was horrible.  So, do your due diligence and you should be fine.  You can change property managers but you can't change the neighborhood.

Look forward to hearing how it goes!