What's the best way to get into an income property?

[Andy Odano]

Hello,

I'm new to BiggerPockets but have found it very educating thus far as I get started in the REI world. I'm a Los Angeles native looking to invest in out of state income properties, and hopefully, build a portfolio of properties through the BRRRR method. I am still learning the art of evaluating the deal using things like COC return estimates, IRR estimates, 70& rule, 1% rule, etc.

I've been interested in REI for several years but haven't had the opportunity and knowledge to get in strategically. I recently attained my real estate license in CA, and have been researching various markets and turnkey providers to find the best deal to get started. My questions for the BP community are as follows:

1. Currently, what are the best, up and coming markets to get into?

- Recently, I've focused my energy on these areas: Houston, Dallas, Jacksonville, Birmingham, Charlotte, Indianapolis, Memphis

2. Is it better to go with a turnkey provider who takes care of all the initial costs and management, or is it better to find a property on your own, find a contractor on your own, and find a property management co on your own?

Thanks in advance for sharing your knowledge, time, and recommendations. 

Sincerely,

Andy O.

[Jason Cory]

You save money by financing subject to repairs. A local property management company can oversee things & the loan company won't release funds to the contractor until the appraiser turns in draw inspections as work progresses. 

Never invest for the 1% rule. Making $100-$200 a month is pointless investing/financing $100k. If one thing goes wrong where is the money coming from to renovate and/or cover expenses/loan payments. 

If you're going to invest to rent buy to actually make money. This TK investing being sold on BP is about to leave a lot of people with serious financial issues.

Real Estate is full time job not a hobby. Invest like it is.

It's frustrating to watch as a former appraiser. Your intentions are good but I've appraised too many foreclosures because people were sold sunshine & rainbows instead of the truth.