New Investor from Salt Lake City

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New Investor from Salt Lake City

Jeff P.
Rental Property Investor · Sandy, UT · Member since 2015 · 27 posts · 6 votes

Hi BP, this is my first post. I am a new investor. I live in Sandy Ut. Long time reader and observer and finally prepared to make a move into REI. Most interested in out of state investing for buy and hold. I have looked into a number of turnkey companies and markets and think I have a good handle on what it all means.

I would love to connect with fellow investors in SLC (particularly if you have done out of state or turnkey) to  hear your story. Please reach out if you are interested in the same.  Thank you very much. 

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Colton Smart
Member since 2019 · 1 post · 1 vote
7y

Hi Jeff,

It seems like we're in the same boat.  I'm also a new investor looking for a turnkey to get my feet wet before really diving into the investing game.  I've been interested in investing in Ohio and Missouri, but that's mostly because I've started communicating with Rent To Retirement, and that's their main focus right now.  I haven't quite invested yet, but Zach, the company owner seems pretty cool and honest so far.

I'd love to stay in touch and hear how it goes for you.

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  • Coco Zuniga
    Investor · Herriman, UT · Member since 2017 · 79 posts · 60 votes
    7y
    Originally posted by @Jeff P.:

    Hi BP, this is my first post. I am a new investor. I live in Sandy Ut. Long time reader and observer and finally prepared to make a move into REI. Most interested in out of state investing for buy and hold. I have looked into a number of turnkey companies and markets and think I have a good handle on what it all means.

    I would love to connect with fellow investors in SLC (particularly if you have done out of state or turnkey) to  hear your story. Please reach out if you are interested in the same.  Thank you very much. 

     Hey Jeff! I just messaged you! 

    Coco 

    0Reply
  • Amy KendallBusiness Member
    Real Estate Broker · Lehi, UT · Member since 2016 · 397 posts · 318 votes
    7y

    Welcome to the forums @Jeff P.!  I have bought two duplexes out of state in Arizona and am currently building some fourplexes in Florida.  For out of state investing, I have relied heavily on property managers to get a good feel for the area.  I recommend contacting a few that have absolutely no connection with who you are purchasing the property from to make sure your projections of rent and the area are accurate.

    0Reply
  • Colton Smart
    Member since 2019 · 1 post · 1 vote
    7y

    Hi Jeff,

    It seems like we're in the same boat.  I'm also a new investor looking for a turnkey to get my feet wet before really diving into the investing game.  I've been interested in investing in Ohio and Missouri, but that's mostly because I've started communicating with Rent To Retirement, and that's their main focus right now.  I haven't quite invested yet, but Zach, the company owner seems pretty cool and honest so far.

    I'd love to stay in touch and hear how it goes for you.

    1Reply
  • Zach LemasterBusiness Member
    Rental Property Investor · Denver, CO · Member since 2015 · 1k+ posts · 3k+ votes
    7y

    @Colton Smart @Jeff P.

    Thanks for the shout out Colton!

    Jeff, happy to answer any questions you have about out of state turnkey investing in cash flow markets!

    Zach

    [email protected]800-311-6781Podcast Guest on Show How to Get 10%+ Off Your Next Real Estate Deal Right Now
    Rent To Retirement5334 Reviews
    WebsiteView Page
    0Reply
  • James Wise
    Real Estate Broker · Cleveland Dayton Cincinnati Toledo Columbus & Akron, OH · Member since 2013 · 30k+ posts · 20k+ votes
    7y
    Originally posted by @Jeff P.:

    Hi BP, this is my first post. I am a new investor. I live in Sandy Ut. Long time reader and observer and finally prepared to make a move into REI. Most interested in out of state investing for buy and hold. I have looked into a number of turnkey companies and markets and think I have a good handle on what it all means.

    I would love to connect with fellow investors in SLC (particularly if you have done out of state or turnkey) to  hear your story. Please reach out if you are interested in the same.  Thank you very much. 

     Welcome to the site Jeff.

    0Reply
  • Jeff P.
    OP
    Rental Property Investor · Sandy, UT · Member since 2015 · 27 posts · 6 votes
    7y

    Thank you all for the prompt replies!  I really appreciate that.  I will work through these and any other responses through the weekend.  BP is a great resource!

    0Reply
  • Jeff P.
    OP
    Rental Property Investor · Sandy, UT · Member since 2015 · 27 posts · 6 votes
    7y

    Thanks James.  I love your videos.  Cleveland seems like a great place!

    1Reply
  • James Wise
    Real Estate Broker · Cleveland Dayton Cincinnati Toledo Columbus & Akron, OH · Member since 2013 · 30k+ posts · 20k+ votes
    7y
    Originally posted by @Jeff P.:

    Thanks James.  I love your videos.  Cleveland seems like a great place!

     Thanks Jeff glad you enjoy the content. For more info on Cleveland you'll want to check out The Ultimate Guide to Grading Cleveland Neighborhoods. There are some great places yes, but there are also a lot of very rough places where it's very easy for investors to loose a lot of money as most west coast folks coming to Cleveland for cash flow aren't used to the level of blight we've got in some of our neighborhoods.

    0Reply
  • Jeff P.
    OP
    Rental Property Investor · Sandy, UT · Member since 2015 · 27 posts · 6 votes
    7y

    @James Wise I see you have ultimate neighborhood guides for other cities. Are you working on Pittsburgh or Huntsville?

    0Reply
  • James Wise
    Real Estate Broker · Cleveland Dayton Cincinnati Toledo Columbus & Akron, OH · Member since 2013 · 30k+ posts · 20k+ votes
    7y
    Originally posted by @Jeff P.:

    @James Wise I see you have ultimate neighborhood guides for other cities. Are you working on Pittsburgh or Huntsville?

    Huntsville has been on the table. Odds are good you'll see that in early 2020. As for Pittsburgh not on the table right now. Haven't found a reliable property management team in that market yet. I need locals to be involved for obvious reasons.

    0Reply
  • Account Closed
    Rental Property Investor · Sacramento, CA · Member since 2015 · 1k+ posts · 893 votes
    7y

    Welcome @Jeff P.

    Tons of good stuff available out of state. Choosing the right market is probably the most important factor! There are still a handful of undiscovered markets that offer returns that might beat your expectations.

    Having a strong management team is key too, get some good referrals once you pick a market.

    Good luck-

    0Reply
  • Stefan D.
    Park City, UT · Member since 2018 · 127 posts · 126 votes
    7y

    Welcome to the site Jeff.  I'm in your neck of the woods (Park City), and am working on my 3rd property in Pittsburgh.  Feel free to reach out if you have any questions

    0Reply
  • Jeff P.
    OP
    Rental Property Investor · Sandy, UT · Member since 2015 · 27 posts · 6 votes
    7y

    @Zach Lemaster Hi Zach, I sent you a PM.  I would love to connect soon. 

    0Reply
  • Jeff P.
    OP
    Rental Property Investor · Sandy, UT · Member since 2015 · 27 posts · 6 votes
    7y

    @James Wise one company I spoke with used 3 Rivers PM in Pitt. FYI  

    Look forward to info from Huntsville

    1Reply
  • Jeff P.
    OP
    Rental Property Investor · Sandy, UT · Member since 2015 · 27 posts · 6 votes
    7y

    @Stefan D. Thanks for reaching out.  Did you purchase these properties with your own team or through turnkey?  Who is managing them for you?

    0Reply
  • Dave DeMarinis
    Lender · Santa Rosa, CA · Member since 2017 · 283 posts · 255 votes
    7y

    @Jeff P. Welcome to BP Jeff. I grew up in Ohio and now live in California. I invest in Ohio, Huntsville and California. I actually love Utah and nearly bought commercial property there in 2017. I have a slightly different take - I think the team is MOST important. I think OOS investors can easily get analysis paralysis trying to select the best area/city. I don’t really think there is what I would call location arbitrage because there is so much attention on OOS. Meaning, any area with great dynamics is very hot and the demand basically normalizes the opportunity.

    I would go through a one week analysis and data gathering on markets - pick your top two or three (you won’t go wrong) and then start making contacts. You’ll be fortunate to start to build a team in one market and wherever you take hold, I would dive in and develop your team and start investing there.

    1Reply
  • Jeff P.
    OP
    Rental Property Investor · Sandy, UT · Member since 2015 · 27 posts · 6 votes
    7y

    @Amy Kendall thanks for that tip, Amy.  I will definitely reach out to local PM groups before I buy.  Where in Florida have you purchased?

    0Reply
  • Zach LemasterBusiness Member
    Rental Property Investor · Denver, CO · Member since 2015 · 1k+ posts · 3k+ votes
    7y

    @Jeff P. Thanks!  I look forward to speaking with you!

    [email protected]800-311-6781Podcast Guest on Show How to Get 10%+ Off Your Next Real Estate Deal Right Now
    Rent To Retirement5334 Reviews
    WebsiteView Page
    0Reply
  • Stefan D.
    Park City, UT · Member since 2018 · 127 posts · 126 votes
    7y

    @Jeff P. With my own team.  Rentwell.  I did also do research on Turnkey companies, but I found that it many peoples' experiences weren't seamless and the houses weren't necessarily low maintenance (Which to me, was the draw in the first place).

    0Reply
  • Account Closed
    Rental Property Investor · Sacramento, CA · Member since 2015 · 1k+ posts · 893 votes
    7y

    @Dave DeMarinis 

    I'm not sure I fully agree, although I agree to some extent. 

    Not all good markets are insanely hot. In fact, a lot of insanely hot markets are inherently, due to saturation of investors willing to make less money than us, less profitable markets to invest in. Now I'm not some property mogul who understands the economic intricacies of every asset type and investment strategy- but I do spend the majority of my day focusing on the everyman's rental property (ie 1-8 unit properties). I've observed time and time again that secondary and tertiary markets, when selected without compromising on rental demand, laws, and tax/utility expenses, are as operable as major hubs but with more opportunity to swing a 10-cap or above. 

    When you pick a really solid market, if investing in simple assets like the ones I mentioned above, you're also far less reliant on perfection from your property manager. Still swing for the fences on finding a rockstar, but management has rarely been a limiting factor for us when the market is right. On the flip side, we've observed a suboptimal market to put much more pressure on management's ability to swim against the current: a problem we've faced in several cities in Ohio and Michigan.

    1Reply
  • Dave DeMarinis
    Lender · Santa Rosa, CA · Member since 2017 · 283 posts · 255 votes
    7y

    @Account Closed Great points Elliott and I also somewhat agree. As important as PM is, I actually think the people and process to estimate rehab costs and execute the rehab as the most critical. Followed closely by PM but contractor is the key. To your other point, asset class and investment strategy will “cause your mileage to vary” for sure. For example, if someone is doing Turnkey - that really narrows the scope of risk and makes it easier to verify the “contractor” (Turnkey company) - so contractor would still be important but not as important/risky as in a value add strategy ...

    Thanks again for the thoughtful response!

    0Reply
  • Account Closed
    Rental Property Investor · Sacramento, CA · Member since 2015 · 1k+ posts · 893 votes
    7y

    @Dave DeMarinis

    From one out of state investor to another, I think we can agree on a few things.

    1. Turnkey is a bit too premium at the expense of returns. 10% ROI with debt in the midwest or south purchased in peak season isn't really a great buy, regardless of how nice the property is.

    2. Rehabs out of state are a headddacchhheeeee. Phew. Especially for new investors, most of whom seek to be relatively passive.

    For my investors, I stick to properties that do not require repair beyond the scope & ability of a full service property management company. Something that is already occupied, cash flowing, and in serviceable condition (although not necessarily perfect of fully remodeled).

    What do you think? Not for your or I, but for the majority of the BP audience- the new to newish investor that doesn't have a ton of time to commit to this endeavor? 

    0Reply
  • Barry H.
    Investor · Scottsdale, AZ · Member since 2017 · 237 posts · 78 votes
    7y

    @Jeff Porter welcome to RE investing. I have been lax at checking my BP account for the summer but checked in recently. This is an interesting thread and because I am also an OOS (Out of State) investor, will toss in my 25 cents. I have been doing this for about 15 years, but the OOS presented itself when the ROI opps dried up in the Sand States (CA NV AZ FL - and probably now TX also). I agree with pretty much everyone who has contributed to this post. @Stefan Druzdzel started a purchase from me in KC MO but we did not close. Learning process for both of us I guess and I did find a couple things during inspection I did not know about - and then put more $$$ into the prop and put it back on the market. Having been in KC for 3 years now, I have become a TurnKey Seller. I do not make much on any sale, but I provide a solid product with above market rent which cash flows above 20% with ALL expenses accounted for, including the debt service. I do this because it is my goal to become a lender (owner-carry back loans), not a portfolio owner, per se. I fix them up nicely too because there always remains a possibility I will get it back !! When I was using PMs and their contractors, I was presented with the "plan to success" being to put lipstick on the best available properties and get 70-75% of the amount of rent I actually do get (ongoing maintenance constantly, more challenging tenant pool etc). In short, I am happy with a 10% annual return when I can deliver my Buyer a 20%+ annual return with a 25% down payment. I lost a lot of $$$ and time taking the advice of other "trusted locals" who turned me on to the best Wholesaler, RE Agent, Contractor, Prop MGR etc. They all put their hands in my pockets until I had to physically go there and straighten everything out. The moral of the story is that you will find an approach that works for you, but definitely expect there to be some bumps along the way. BEAR :-)

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