All Forum Posts by: Jonathan Oh

@Rodrigo Serzedello

SD is a tough market to cash flow in. The benefit of investing locally is well you can check up on it anytime you want. But if you're concerned about returns, you're going to get higher returns investing OOS. You're dollars will get you multiple properties vs just the 1 you get in SD. Hope that makes sense. I invest in turnkeys as well so feel free to ask me questions!

@Rajan Udeshi

1. Who should I be working with as a remote investor? ( I plan on traveling there once I have a plan in place) 

Depends which route you take. If you go turnkey, you work mostly with turnkey folks. If you go on your own, start with a good agent and property manager.

3. Is my budget reasonable? My goal is to put down 20% and go conventional route for financing.

Yes, expect to put 20-25%.

Whatever you do, don't get suckered into the cheap properties that look awesome on paper. Stick to B class properties that are priced near the median. Dive into your sub markets before making your first OOS investment. 

@Lee Jedlicka

Welcome to BP! Have you picked a market yet?

@Mitchell Wyatt Investing OOS can offer better returns, but there are pros and cons to this. This will depend on what your goals are. I live in an expensive market where it's impossible to see an acceptable return. That's why I invest OOS. I started investing with turnkeys and can offer my experiences if you want. Good luck!

@Karan Chandran Prices have risen everywhere. Most markets that turnkey providers operate in are linear markets. Prices don't fluctuate as wildly as SoCal. The most important aspect to OOS is PM. Yes, they can cost a lot, but you have to ask yourself, is it more worth it to save the extra costs by managing yourself? It's not just about management either. What about understanding local laws, eviction process, etc? I invest OOS, so feel free to ask me questions. Hope this helps!

It doesn't matter if it's in top shape. It just takes 1 bad tenant to destroy all your fresh renovations. And when you invest in D class, bad tenants are usually what you're going to get. If you're working with a turnkey provider that only sells D class properties, I highly suggest looking at other outfits. I would also review why you want to invest in the first place. If you're like most turnkey investors that are looking for a long-term, STABLE investment, D class rentals are not going to get you there. TBH, it almost sounds like you're considering D class because you're desperate for a deal. Be patient. Never stop educating yourself and only pull the trigger on the right deal. D class is not the right deal for most investors especially OOS.

@Babu Ramadoss

The best way is always going to be to visit the areas. But if that’s not an option, you may want to call a few property managers and get their opinion. While there are lots of data out there for what you’re looking for, finding and aggregating them on a neighborhood level is difficult. If you need some help on this feel free to message me. Good luck!

@John Burke

I agree with @James Wise and think turnkey is the best route for you. There are a lot of bad turnkey deals out there so do you due diligence thoroughly. The unfortunate thing is, you are sort of limited to markets that turnkey companies operate in. I'm not sure I know of any operators in NC. If you qualify as an accredited investor, then you may also want to look into syndications. Hope this helps!

@John Burke

@Tal C. I think @Chris Clothier is spot on. He's a big turnkey operator in Memphis and I'd listen to what he says. I took a look and have similar conclusions.

@Shriram Sharma 

Heard good things about Hammond and people moving there from IL. I do know it has some rough areas, so just beware of that. I invest in KCMO as well, so I can provide you some insights there if you'd like.