All Forum Posts by: Chad Stark

@Neetu Nagi I invest in Kansas City. Happy to share my experience if you want to PM. I just recently found BiggerPockets but it seems to be a great tool for new investors making connections!

I was able to put 20% down for my out of state investments. On a $100,000 purchase I would expect to cash flow $350-$400 per month after taxes, insurance, property management and mortgage.

Good day, Biggerpockets!  I have read and heard from many of you regarding your out of state Turnkey investments. It seems we hear more about the bad experiences than the good so I wanted to share my story. 

For the last several years, my home state of California has been an impossible market to invest in, unless you got in a long time ago or are banking on some appreciation.  About 3 years ago I started researching how I could get the best return on investment. I am in the midst of my career but I have so many other aspirations for this life so I NEED passive income. I stumbled across the term "Turnkey".  Like most, I was reluctant to jump into something like this, so I continued to do my research.  Long story short, I visited two midwest markets; Memphis and Kansas City. I met with a few different Turnkey providers and decided Kansas City was the best market for me. While they are both similar markets in regards to population, job growth and stabilized economies, I found a better return on investment in Kansas City. After seeing different properties I contracted two properties in South Kansas City. The company that I went with was very knowledgable and helpful through out the closing. I worked with their preferred lender and title company and it was all a smooth process.

Fast forward to today, I have been quite pleased with my experience. I have had long term renters and no turn over cost yet. Rent has hit my bank account like clock work. A little bit of maintenance is to be expected which is why I set aside a monthly reserve for that but I have not encountered any significant costs buying Turnkey. I prefer to be hands off with my investments and have one monthly phone call with my property manager. 

I plan on investing in more property in the near future, which is why I am back on the internet and stumbling across Biggerpockets. I have stocks but have always felt Real Estate is a better investment. My cash return on investment has exceeding any of my stocks and I have also come to find out my houses have gained $15,000 in equity over the last few years.  Not expected but surely gratifying. 

I wish all of you the best of luck. If anyone would like more insight or has any questions I am happy to share. I will try to continue updating my story, perhaps in more detail.

Regards,

Chad

I have had much success in Kansas City Missouri. 

@Adam Sankowski hit the nail on the head.  I have experienced much the same for Section 8 in Kansas City. I have 2 Section 8 houses and the tenants have both been there going on 3 years. The Property Management company that I use still collects at least one months rent for a security deposit (not paid by Section8), which I feel keeps skin in the game for the applicant.  Adam also brings up a great point... it is important we as investors stay in tune and in touch with the tenant/landlord laws in whichever state we invest. 

Welcome @Sean Abrahamsen.  I'm also new to Biggerpockets but have been investing out of state for the last few years. Beats CA returns tenfold!