Aspiring investor of turnkey rentals

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Aspiring investor of turnkey rentals

Monique Ilagan
New to Real Estate · Rockford, IL · Member since 2022 · 2 posts · 4 votes

Aspiring investor here, have been reading about rental investing for almost a year and am really glad to have come across this community. Is it plausible to start on SFH turnkey rentals with just $20-30k cash on hand (including down and closing costs) as a first time investor? What markets are best recommended to start looking at for OOS investing? Appreciate all replies and TIA!

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Joshua JanusBusiness Member
Realtor · Cleveland, OH · Member since 2021 · 1k+ posts · 1k+ votes
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@Monique Ilagan If you have 20-30k to utilize and are looking for STR, that would limit you to a single family home in most cases as investment loans are 20-25% down. I would look into a market like Columbus, Ohio where the population is growing, companies are moving into the city and the price/sq ft is still relatively priced low to allow investors to get in the market.

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  • Joshua JanusBusiness Member
    Realtor · Cleveland, OH · Member since 2021 · 1k+ posts · 1k+ votes
    4y

    @Monique Ilagan If you have 20-30k to utilize and are looking for STR, that would limit you to a single family home in most cases as investment loans are 20-25% down. I would look into a market like Columbus, Ohio where the population is growing, companies are moving into the city and the price/sq ft is still relatively priced low to allow investors to get in the market.

    [email protected]614-502-5316Podcast Guest on Show From DoorDasher to $1.5 MILLION in Real Estate (All at 22 Years Old!)
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  • Austin McClainBusiness Member
    Real Estate Agent · OH · Member since 2021 · 348 posts · 602 votes
    4y

    In midwest markets that could work as the down payment. I haven't seen anything that you could get for $30,000 in total that would be turnkey. Cities in Ohio and Columbus would be good places to look. 

    [email protected]614-710-4827
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  • Patrick DruryBusiness Member
    Real Estate Agent · Columbus, OH & Cleveland OH · Member since 2021 · 1k+ posts · 2k+ votes
    4y

    @Monique Ilagan
    You can definitely pick up a single-family rental that will cash flow with 20-30k cash on hand. In most cases, it's not going to be completely turnkey you're going to have to pay more if you want a turnkey home or just put the work into it. 

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  • Patrick DruryBusiness Member
    Real Estate Agent · Columbus, OH & Cleveland OH · Member since 2021 · 1k+ posts · 2k+ votes
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    @Monique Ilagan
    Forgot to mention I was referencing the Columbus market above where I live and invest currently. 

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  • Seth Young
    Specialist · Southlake, TX · Member since 2021 · 213 posts · 157 votes
    4y

    I know of turkey companies that have a purchase price of between 200k-300k. These homes will be fully renovated and set up for the long term buy and hold. It would be closer to 50k-75k to deploy on a property.

    Above all else, I would ensure the team you work with has a reliable and consistent reputation. Best of luck with all your investing! @Monique Ilagan

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  • Monique Ilagan
    OP
    New to Real Estate · Rockford, IL · Member since 2022 · 2 posts · 4 votes
    4y

    Thanks for all your replies. Definitely gave me some insights on where am I at and how much capital I need to build. 

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  • Steve Donovan
    Rental Property Investor · Green Bay, WI · Member since 2016 · 150 posts · 94 votes
    4y

    Hello @Monique Ilagan  You can possibly find some turnkey properties in the 130-140k level in the Midwest. This would require slightly over $30,000 down.  Be careful however; lower entry point typically means higher risk in terms of quality of neighborhoods and the the condition of the properties.  Best of luck to you as you get started in your investing career!

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  • Scott JohnsonBusiness Member
    Specialist · Greenville, NC · Member since 2019 · 673 posts · 408 votes
    4y
    Quote from @Steve Donovan:

    Hello @Monique Ilagan  You can possibly find some turnkey properties in the 130-140k level in the Midwest. This would require slightly over $30,000 down.  Be careful however; lower entry point typically means higher risk in terms of quality of neighborhoods and the the condition of the properties.  Best of luck to you as you get started in your investing career!

     @Steve Donovan, I love that you responded. I see you're Wisco Turnkey LLC. Do you flip properties into a turnkey and then sell them to investors? I've been looking at doing that in our market and would love to connect.

    @Monique Ilagan, do a lot of research into turn keys and learn how they work. It may be as simple as paying for it and rolling with it, but there are always subtle nuances you need to consider. You also need to know your end goal and consider how you're going to get there. 

    What most people don't realize is that cash flow increases your taxable income. Do you want to replace your taxable income with more taxable income? How much do you need? All thoughts to consider. 

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