Hi fellow BP members, I am a new investor from UT and looking to make some connections and build my team to buy and hold properties in the midwest. We'd like to start off by investing $100k in OOS markets, preferably: Kansas City MO, Indianapolis IN, and Columbus OH but open to other markets with low entry and good appreciation. I have researched the different strategies like BRRR but since its our first investment and based on what many have pointed out, it's difficult to BRRR from OOS. Being a new investor and not having a team setup, our other option would be to work with a turnkey provider so that we can get our feet wet and get the ball rolling. I realize that turnkey won't have any equity available to scale quickly like doing BRRR but we just want to get started.
Here are the questions I have to help us nail down our strategy:
1. if we go turnkey, I realize there are PM costs involved and likely no upfront equity available, how long will I have to wait before I can refinance to pull out the downpayment that I put towards it so that I can scale and buy my next property?
2. would it be better for me to work directly with a realtor in those markets instead of going with a turnkey provider and look for decent properties that don't require any rehab and work with PM to get it rented out? I just worry that if I go this route since I am new, it may be hard to find a good PM that can work with me to help get the property rented out quickly vs. a turnkey provider already has that system in place and can potentially get the property rented out sooner.
3. once I buy my first property, how long do I have to wait before I can get a new loan for my next property?
4.Can we purchase multiple properties at the same time or would that affect the DTI heavily making it difficult to obtain multiple loans?
Looking forward to hearing what others think. Thanks in advance!
