All Forum Posts by: Andrew Kewley

All,

Thank you so much for your advice and warnings regarding the risks of out-of-state turnkey investing, and for taking the time to help out a newbie. Sounds like I need to do some more research on more local investing strategies before going too far.

@Andrew Johnson Got it! I appreciate those insights. Couldn't agree more about the strategy match and I'm still narrowing down my own. I have to say, as a numbers guy, the economies of scale you're taking advantage of makes a lot of sense to me.

@Tom Ott Thanks for the tip regarding agents finding MLS "turnkeys." Good to know!

@Andrew Johnson Thanks for clarifying. That all makes a lot of sense. That strategy certainly makes the trip more worth your time and money. Although your point is about volume, rather than just multi-families, would you recommend out-of-state multi-family investing for a new investor?

@David Faulkner I really appreciate the thoughtful response! You make an excellent point with each question. SD certainly certainly has different supply and demand fundamentals than many lower priced markets, which make them hard to compare. I would definitely prefer to invest locally, but the numbers just don't seem very appealing to me, if I'm looking for cash-flow.

As someone with both in-state and out-of-state experience, how do you make that decision on buying locally vs. long-distance? 

@Rami W. Got it, thanks for the quick reply! Good to know, I'd actually never heard of turnkey groups that pool properties together.

@Andrew Johnson That's a great point. I'd definitely want to go out and see the property before making a purchase and would want to make the occasional visit, which would certainly eat in to profitability and cash-flow, and could easily kill a ~30k deal. Do you recommend a larger investment in a multi-family, so that the travel costs make up a smaller portion of the total costs?

@Rami W. Thank you, Rami! Do you have any personal experience with turnkeys?

@Account Closed Thanks for the recommendation! The BP podcast is awesome, I'll definitely have to check out #155. That's interesting, I've also heard some not so good things about the ~30k properties. I still find it amazing hearing about properties at that price level, since the cheapest house in my area is around ~400k. I looked into the Phoenix area a little, it seems like there are some ok deals. Good luck in AZ!

BP,

I live in the San Diego area and I'm looking to invest in cash-flowing rental properties. However, in San Diego, it seems nearly impossible to find a property that will cash-flow without a huge percentage down, and even then, the ROI won't be very good (if I'm missing something here, please let me know). Since San Diego doesn't look like a good investment market for me, I've been researching out-of-state investing (which I understand comes with it's own challenges), and specifically have been considering turnkey investing.

Please let me know what you think about this strategy for someone in an area where cash-flowing properties are very hard to come by, and please let me know any advice you have.

Thanks so much!