All Forum Posts by: Fernando E.

@Fernando Enrile consider California we have some of the highest appreciation and total IRR rates in the world and with STR markets in California (if managed optimally the cashflow over  maintenance is better than any markets I have heard of.) be where people want to be not where they don't want to be. This has been a good year no doubt and not every year will be as high but my California properties have had over 100% return on equity in the last year and both rents and appreciation are still getting hotter. Rents are up 58% in my market and they were double digit cash-flowing properties before that.

 Hi Fernando, Cleveland is a great city for cashflow. I would also check out Columbus, OH. I would really focus on equipping the right team, this will be crucial for your success with out of state investing. Good luck! 

It does not matter where you start as long as you develop your Core 4. The core 4 is David Greene’s strategy for long-distance and made up of a realtor, contractor, property manager, and lender. Once you have this team in place, you should be able to confidently invest in any market.

As for picking a specific market - I would go after one with an increasing job and population growth. I invest and work in Columbus, Ohio.

Typically investors find it more useful when you give them specific details, useful info, context, etc. rather than simply pasting more or less the same short message over and over and over about how you bought a TK through Martel and they should inbox you to find out more. Just a thought, in the off chance you're truly interested in being helpful.

Good idea! That's the key take lazy equity and buy higher ROI.

Unfortunately the real question of 2021 for turnkeys isn't which markets will cash flow, but which ones actually have inventory. Turnkey inventory is majorly strapped right now because of all the foreclosure moratoriums preventing access to foreclosures for the turnkey providers to fix up.

There are a lot of markets that can cash flow- Chicago, Cleveland, Kansas City, Indianapolis (although it's getting tighter there), Harrisburg, Birmingham, OKC, Memphis, Jacksonville, Baltimore... But some of those markets are mostly out of inventory (Chicago) or on wait lists (Baltimore) or selling out the minute the properties hit their email lists (Harrisburg, Cleveland, Indy, etc.)

Do you have any other criteria for a market other than whether or not it cash flows? What's your budget and/or preferences for a property? Can make some recommendations for markets that have TK providers with available inventory that fits. Or if you're waiting until Q2 to buy, I'd wait to know exactly who will have inventory then, because it's changing all the time right now.

Hi Fernando, 

Most turnkey companies offer good COC returns with 20% down. I have connected with several investors from CA who have been looking to invest out of state because of the competitive and high price market. I recently closed on a turnkey in Cleveland, OH with Martel Turnkey. Let me know if you want to connect and chat about the purchase process.

Hi @Fernando E.!

As yourself and others have mentioned, Ohio has good potential for cash flow. Another to consider would be Kansas City, MO. I recently invested there myself (see post below) and I am able to cash flow.

https://www.biggerpockets.com/forums/850/topics/895660-my-first-investment-property-an-out-of-state-deal

Best Wishes!