First time CA real estate investor looking for some solid advice on out of state turnkey markets and companies. After reading through the forums for general advice regarding due diligence etc. I was hoping to find some fellow investors who were willing to share their experiences.
Main interest regards advice in terms of good/bad markets and recommended turnkey companies that they are willing to vouch for in order to get my search started and would be much appreciated.
Rental Property Investor · Centreville, VA · Member since 2019 · 1k+ posts · 799 votes
4y
Hi Martin, Welcome to Bigger Pockets!
I was also in the same boat 2 years back looking for out of state markets to invest in and I found Martel Turnkey and they were really great to work with. I purchased a SFH in Cleveland, OH. Let me know if you want to connect and chat more about the purchase.
If you look through the forums, REI nation and Rent to Retirement also have a huge presence in a lot of states and have a great operation.
Rental Property Investor · Centreville, VA · Member since 2019 · 1k+ posts · 799 votes
4y
Hi Martin, Welcome to Bigger Pockets!
I was also in the same boat 2 years back looking for out of state markets to invest in and I found Martel Turnkey and they were really great to work with. I purchased a SFH in Cleveland, OH. Let me know if you want to connect and chat more about the purchase.
If you look through the forums, REI nation and Rent to Retirement also have a huge presence in a lot of states and have a great operation.
Real Estate Agent · Memphis, TN · Member since 2021 · 88 posts · 50 votes
4y
Hi Martin!
I would love to connect with you and share some info on some really good markets to invest in. I can also get you in contact with some investors that invest in those markets specifically.
Lender · CO CA TX WA ID OR · Member since 2020 · 419 posts · 542 votes
4y
Kind of a dorky name, but Hipster Investments has solid properties with a decent bottom line. I have no affiliation with them: https://www.hipsterinvestments...
Hi Martin, I have found rent to retirement to have alot of valuable information regarding out of state investing. They are very reputable here on bigger pockets and operate in some great markets.
There are lots of forums talking about them along with other turnkey companies on here.
Rental Property Investor · Green Bay, WI · Member since 2016 · 150 posts · 94 votes
4y
Greetings @Martin B. ! I have posted this previously, but it bears repeating... Do your research on the markets and the turnkey company prior to making any investments; especially these days as there are people looking to make quick money off unsuspecting buyers.
The Bigger Pockets forums provide a wealth of information and sources of ongoing support. Many new investors look to turnkey to get started, as it provides an entry point that requires less hands-on and allows an investor to participate in markets that offer higher returns. If you go this route it is important to realize that there is no common definition of turnkey. In terms of rehabbing the property, the workflow can range from throwing a coat of paint on a wall or two, to an entire gut of the mechanicals, windows, siding, and flooring. Some providers take the approach that a furnace or water heater with several years of expected life shouldn't be replaced in the rehab, but that the final product should be priced accordingly. That furnace will need to be replaced in the next few years, but just not yet... Some turnkey companies sell the property to investors at the point where the rehab work is identified and quoted, but not yet completed. The investor then waits for completion and tenant selection prior to earning any income. Other providers sell the units only after the rehab is completed and the tenant in place.
Any turnkey investor should ask very probing questions of the turnkey provider regarding the condition of all mechanicals, roof and windows prior to entering into a deal. As you will soon find, there is no common definition of a turnkey property, and it can be very risky (and expensive) to make any assumptions.
The ongoing management of the property is another area of vastly different approaches to turnkey investments. Some providers simply sell the property and the investor is left to find a management company, maintenance personnel, snow and lawn care providers, etc. Other providers offer up recommendations for these services, and still other turnkey companies offer these services as part of their overall package. The range of offerings is great, and no assumptions should be made; you need to ask very specific questions regarding who is to do what.
All the best to you as you begin your investment journey!
Specialist · Southlake, TX · Member since 2021 · 213 posts · 157 votes
4y
I would suggest southern/midwest states if you are looking for turnkey. I would look for states that are more landlord friendly and much lower sales price compared to California. Are you looking for more cashflow or appreciation? @Martin B.
Kind of a dorky name, but Hipster Investments has solid properties with a decent bottom line. I have no affiliation with them: https://www.hipsterinvestments...
I agree, it's a very dorky name! People like it way more than I do, and I created it :) Thanks for the plug!! Always happy to help in any way.
Also for anyone looking for feedback on turnkey companies and other people's experiences, I run a turnkeys Facebook group. Not sure I can link to it in here but if you just search turnkey rental properties on FB, it should come right up.
Hi Martin, I have found rent to retirement to have alot of valuable information regarding out of state investing. They are very reputable here on bigger pockets and operate in some great markets.
There are lots of forums talking about them along with other turnkey companies on here.
Agree with Joshua - we’ve been working with R2R for a couple years and Zach Lemaster and his team always put out helpful information through podcast and YouTube videos. Properties have done well for us as well. Definitely worth looking into them