Turn Key - Best cities to start in, would like your opinion

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Turn Key - Best cities to start in, would like your opinion

Dylan H.
Rental Property Investor · DC MD VA · Member since 2021 · 47 posts · 27 votes

Hello BP

Looking at a few markets to get started in, including Baltimore, Cleveland, and Memphis. Pros cons to each? Any personal experience or advice?

Any advice or recommendations? Ideally, as an OOS investor I'd like to get to know a few turnkey providers and really see if they fit my investment criteria, communication style,etc. Is there a company out there that works with the investor from start to finish?  

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Mio Chee
Investor · Honolulu, HI · Member since 2022 · 51 posts · 41 votes
4y
Quote from @Dylan H.:
Quote from @Mio Chee:

I am too an OOS investor and invest in IN, TN (Cordova), and OK thru my turn key company. They are performing well and I love being a hands off investor because I can focus on other things in my life. I know each turn key is different, but the company I use has a very unique method and I really love it. Without them, I do not think I would have been able to purchase any of our rentals since Honolulu, the area we live in, are out of reach for us. 

Thanks for your reply! Which company did you end up working with? I’m in similar situation as we too live in a HCOL area 

I have been using Done for You Real Estate in Utah (I have never visited their office. Everything is done online or via phone) for 7.5 years. I truly love them and if you read their online reviews, you will see I am only one of many members who are very happy with their service. If you did decide to reach out to them, I would suggest that you would request the same account manager as mine as not all are equal. I have had about 4 in the past and my current AM is amazing and made all the difference. If you want more info, feel free to DM me.   

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  • Mio Chee
    Investor · Honolulu, HI · Member since 2022 · 51 posts · 41 votes
    4y

    I am too an OOS investor and invest in IN, TN (Cordova), and OK thru my turn key company. They are performing well and I love being a hands off investor because I can focus on other things in my life. I know each turn key is different, but the company I use has a very unique method and I really love it. Without them, I do not think I would have been able to purchase any of our rentals since Honolulu, the area we live in, are out of reach for us. 

    5Reply
  • Dylan H.
    OP
    Rental Property Investor · DC MD VA · Member since 2021 · 47 posts · 27 votes
    4y
    Quote from @Mio Chee:

    I am too an OOS investor and invest in IN, TN (Cordova), and OK thru my turn key company. They are performing well and I love being a hands off investor because I can focus on other things in my life. I know each turn key is different, but the company I use has a very unique method and I really love it. Without them, I do not think I would have been able to purchase any of our rentals since Honolulu, the area we live in, are out of reach for us. 

    Thanks for your reply! Which company did you end up working with? I’m in similar situation as we too live in a HCOL area 
    0Reply
  • Mio Chee
    Investor · Honolulu, HI · Member since 2022 · 51 posts · 41 votes
    4y
    Quote from @Dylan H.:
    Quote from @Mio Chee:

    I am too an OOS investor and invest in IN, TN (Cordova), and OK thru my turn key company. They are performing well and I love being a hands off investor because I can focus on other things in my life. I know each turn key is different, but the company I use has a very unique method and I really love it. Without them, I do not think I would have been able to purchase any of our rentals since Honolulu, the area we live in, are out of reach for us. 

    Thanks for your reply! Which company did you end up working with? I’m in similar situation as we too live in a HCOL area 

    I have been using Done for You Real Estate in Utah (I have never visited their office. Everything is done online or via phone) for 7.5 years. I truly love them and if you read their online reviews, you will see I am only one of many members who are very happy with their service. If you did decide to reach out to them, I would suggest that you would request the same account manager as mine as not all are equal. I have had about 4 in the past and my current AM is amazing and made all the difference. If you want more info, feel free to DM me.   

    5Reply
  • Ozzy SirimsiBusiness Member
    Real Estate Agent · Baltimore, MD · Member since 2016 · 1k+ posts · 782 votes
    4y

    as far as baltimore goes, it depends on your price range. Turnkey under 120K, it will be in a rough area, over 120K you could be in a decent decent, 150K and more you will be in an okay area.

    1Reply
  • Dylan H.
    OP
    Rental Property Investor · DC MD VA · Member since 2021 · 47 posts · 27 votes
    4y
    Quote from @Ozzy Sirimsi:

    as far as baltimore goes, it depends on your price range. Turnkey under 120K, it will be in a rough area, over 120K you could be in a decent decent, 150K and more you will be in an okay area.

    Thanks Ozzy for that insight. I myself used to live in Baltimore county (owings mills/reisterstown) 
    I’m REALLY looking for a duplex/tri/quad but so are most others I assume. I live near DC so Baltimore just seems right. 
    0Reply
  • Ozzy SirimsiBusiness Member
    Real Estate Agent · Baltimore, MD · Member since 2016 · 1k+ posts · 782 votes
    4y

    dublexes, I would want anything less than 150K to be honest. 

    0Reply
  • Lane Kawaoka
    Rental Property Investor · Honolulu, HAWAII (HI) · Member since 2011 · 4k+ posts · 2k+ votes
    4y

    TK is a great way to get started but just know you are paying retail price plus. Also note that for accredited investors its just not scalable. At a few hundred dollars of cashflow per property you are going to need 30 of these things to get a comfortable life.

    Note - I started with 11 turnkey remote rentals in 2009-2015 while working my engineering W2 job. Then went into syndications once my net worth went over 500k.

    2Reply
  • Shane Kelly
    Real Estate Agent · Cleveland, OH · Member since 2021 · 383 posts · 361 votes
    4y

    Cleveland and most of Ohio has a lot of Turnkey opportunity, that shows in the amount of OOS investors who have cash parked here. I have found quite a few small multi families on the MLS that can cashflow and need minor repairs to get to market rents or can keep old tenants. Best of luck in your search!

    4Reply
  • Jonathan Oh
    Investor · Las Vegas, NV · Member since 2019 · 499 posts · 259 votes
    4y

    Cleveland is the most affordable of those three markets, but inventory is still very tight . Turnkey is nice for a first investment, but you'll premium for it. It might be scary if its your first purchase, but I wouldn't rule out using an agent to purchase a home needing cosmetics.

    1Reply
  • Patrick DruryBusiness Member
    Real Estate Agent · Columbus, OH & Cleveland OH · Member since 2021 · 1k+ posts · 2k+ votes
    4y

    @Dylan H.
    I would definitely recommend Columbus OH. It's a solid hybrid market of cash flow and appreciation. Columbus has lots of job opportunities and population growth. I currently live and invest here in Columbus OH and would recommend it.

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  • Remington LymanBusiness Member
    Real Estate Agent · Columbus, OH · Member since 2017 · 6k+ posts · 7k+ votes
    4y
    Quote from @Dylan H.:

    Hello BP

    Looking at a few markets to get started in, including Baltimore, Cleveland, and Memphis. Pros cons to each? Any personal experience or advice?

    Any advice or recommendations? Ideally, as an OOS investor I'd like to get to know a few turnkey providers and really see if they fit my investment criteria, communication style,etc. Is there a company out there that works with the investor from start to finish?  


    I recommend you read this article on OOS investing. It explains the importance of creating your core four. You will need to get a local, rockstar Realtor, contractor, lender, and property manager.

    https://www.biggerpockets.com/...

    I invest locally in Columbus, Ohio
    [email protected]614-541-8475Podcast Guest on Show My Job Laid Me Off, So I Replaced My Salary with Rentals
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  • Seth Young
    Specialist · Southlake, TX · Member since 2021 · 213 posts · 157 votes
    4y

    Memphis has an above average rental population. Key industries include transportation and manufacturing. Bloomberg claims Memphis is the #1 metro area in the US for job creation. Home prices have increased close to 80% in the past 5 years. I would say a CON may be finding a property, supply is very low right now.  @Dylan H.

    1Reply
  • Alex Evans
    Memphis, TN · Member since 2022 · 230 posts · 99 votes
    4y

    Hello @Dylan H.

    Seth is exactly correct! The Memphis market is comprised of mainly renters, and mortgage values are much lower than rents making it a great city to invest in. Memphis has been the number 1 city for industrial growth recently and is seeing many new job opportunities being created all around the metropolitan area. Just like it is for buying homes currently, it is the same way for rentals in Memphis. We are seeing tenants have a tough time finding a place to rent which is causing demand to go up and that is also raising rent prices at a pretty good rate. Memphis is a great city to look into when you are trying to get into REI, and I would be more than happy to help answer any questions about the market for you!

    1Reply
  • Steven Foster Wilson
    Rental Property Investor · Columbus, OH · Member since 2017 · 3k+ posts · 3k+ votes
    4y
    Quote from @Dylan H.:

    Hello BP

    Looking at a few markets to get started in, including Baltimore, Cleveland, and Memphis. Pros cons to each? Any personal experience or advice?

    Any advice or recommendations? Ideally, as an OOS investor I'd like to get to know a few turnkey providers and really see if they fit my investment criteria, communication style,etc. Is there a company out there that works with the investor from start to finish?  

    I have found the Ohio markets to be great.
    -Columbus, great for appreciation, pp is a bit higher around $250k for multifamily

    -Cincinnati, has a mix of cash flow and appreciation, average multifamily around $180k

    -Cleveland, has alot of cashflow potential, average multifam around $140k

    Ohio is also a landlord-friendly state.I have gone through many contractors, lenders, and property managers until now. Having a great team is really key anywhere you go. 


    1Reply
  • Uri Gofman
    Member since 2018 · 150 posts · 200 votes
    4y

    I am happy to share some insight into the Cleveland Ohio market as I have been an investor here since 1995.  If you are a long term investor looking to build a rental portfolio, there is plenty of good inventory that will give you consistent and predictable returns.  You will have to answer for yourself a series of questions related to your expected returns and risk profile as there is significant variety in your investment options.  Housing in Cleveland tends to be older, much of it built pre WW2.  This may result in higher overall maintenance costs compared to existing inventory in newer cities.  In general however Cleveland tends to have some of the better cash flow options in the country.  I am happy to help match you with turnkey options that meet your invesment criteria in the Cleveland market if you decide to go this route.  Wishing you all the best!

    2Reply
  • Joe Miller
    Real Estate Broker · Columbus, OH · Member since 2021 · 203 posts · 247 votes
    4y

    Severely biased because it is my city but I love Columbus OH and North East Ohio. They price of entry is low and the cashflow is present immediately.

    2Reply
  • Ali Boone
    Real Estate Coach · Venice Beach, CA · Member since 2012 · 6k+ posts · 3k+ votes
    4y
    I can't link to it in here, but I run a turnkeys Facebook group (easy to search) and there are lots of market discussions on there and info on different providers, etc.

    A short answer to your question though-- yes, most of the turnkey providers will work with you start to finish. Baltimore definitely has some good turnkeys but a lot of people don't like Baltimore as much (I love it myself), Cleveland could have stuff but last I knew they're really short on inventory and I'm not sure what turnkey providers are left there now, and Memphis has gotten pretty strapped for cash flow and a lot of those providers have been flocking down to Birmingham for properties, which has now left Birmingham pretty strapped for inventory too. Other markets- Kansas City is still bumping, St. Louis (kind of saturated now, but a lot available on the Illinois side).
    2Reply
  • James WachobBusiness Member
    Real Estate Broker · Memphis, TN · Member since 2015 · 1k+ posts · 890 votes
    4y

    I'm based in Memphis and continue to grow my personal portfolio because of the HIGH demand for QUALITY rental properties. I have several homes in the Cordova area and the rents have skyrocketed because of this demand. A large hedge fund purchased $48m of SFR just last year in Shelby County. This has raised rents in some areas as much as 35%. If you know the areas to invest, it can be very lucrative.

    However, most of the OOS investors I meet have purchased homes in less desirable areas. They are having a tough time with cashflow due to high turnover and maintenance. I'm happy to connect if you'd like to talk about the areas I'm focusing on for my next turnkey investments. 

    2Reply
  • Chris ClothierBusiness Member
    Rental Property Investor · memphis, TN · Member since 2009 · 2k+ posts · 3k+ votes
    4y

    @Dylan H.

    You've had some great feedback already and some good points to consider.  I am biased both in that I invest in Southeast cities and own a turnkey company, so I think some other commenters can give advice on this point.  But, I have chosen to stick with southern cities and away from coastal areas for two reasons.  I don't want the increased cost associated with a city that experiences wet and cold winters annually and I want to stay away from salt air if possible.  I know both of these issues are taxing on quality of life systems like HVAC, heating, piping as well as roofs.  I still experience the same wear and tear, just not at the same rate or at the same maintenance costs.  For those reasons, St. Louis is the furthest north we go as a company and have so far stayed away from going further north such as cities in Ohio and Baltimore.   Like I said, I am biased so take that into account :)

    best of luck as you get started

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  • Andre Crabb
    Investor · Tampa, FL · Member since 2017 · 205 posts · 92 votes
    4y
    Quote from @Dylan H.:

    Hello BP

    Looking at a few markets to get started in, including Baltimore, Cleveland, and Memphis. Pros cons to each? Any personal experience or advice?

    Any advice or recommendations? Ideally, as an OOS investor I'd like to get to know a few turnkey providers and really see if they fit my investment criteria, communication style,etc. Is there a company out there that works with the investor from start to finish?  


    Hey Dylan, I'm not sure about specific companies, but as far as those cities go, I just ran them through my comparison algorithm, and honestly they all seem pretty neck-and-neck.
    Memphis seems to be growing more than the others, probably the safest buy.. Cleveland seems to be a riskier buy but could give more reward. Baltimore is somewhere in the middle.
    Getting in the right area/neighborhoods in whichever one you choose will likely be key.

    0Reply
  • Melissa Nash
    Rental Property Investor · Orange County, CA · Member since 2016 · 740 posts · 529 votes
    4y
    Quote from @Dylan H.:

    Hello BP

    Looking at a few markets to get started in, including Baltimore, Cleveland, and Memphis. Pros cons to each? Any personal experience or advice?

    Any advice or recommendations? Ideally, as an OOS investor I'd like to get to know a few turnkey providers and really see if they fit my investment criteria, communication style,etc. Is there a company out there that works with the investor from start to finish?  

    Baltimore--- up your budget. You will need to spend a little more to get into better neighborhoods, Cleveland tends to have older houses and higher property insurance in OH for sure. Memphis has steady growth, not a lot of rental increases. But solid cashflow. Message me if you would like more specific info, I know a good guy that can help you get into some BRRRR's in Memphis with very high success, where he finds the property & does the renovations for you. Less risk doing it yourself. Message me
    0Reply
  • Ozzy SirimsiBusiness Member
    Real Estate Agent · Baltimore, MD · Member since 2016 · 1k+ posts · 782 votes
    4y

    I have been investing in Baltimore for over 18 years and I am pretty happy. I dont buy 50K houses though. If you spend more than 150K, you should be fine.

    If you are looking to spend 100K or less for turnkey than you are looking for trouble for sure.

    1Reply
  • William Haynes
    Real Estate Agent · Memphis · Member since 2021 · 16 posts · 10 votes
    4y

    Memphis is a great place to do this. I've helped a lot of clients buy turnkey as well as BRRR's here, most all of them being OOS. We have pretty low cost housing relative to a lot of markets, which is a huge Pro. Con is that we're seeing more and more competition from local investors or agents who simply buy the properties themselves, slap lipstick on them and then re-sell them to OOS investors at a significant mark up. The prices are still low, but the cat is sort of out of the bag. My biggest tip is vet your team well, make sure they've done this before and know what they're doing. Memphis is an incredibly investor centric city, so there will be plenty of people lining up for your business and you'll want to be careful whom you work with.

    1Reply
  • Rachael Mathes
    Member since 2022 · 10 posts · 21 votes
    4y

    Ohio is great and still has many turn key options available. We work with several investors, especially OOS, that invest in the Cleveland area. There's still many pockets of opportunity for investors to fix and flip or buy and hold long-term.

    Being local to Northeast Ohio, I’m happy to help with lending and local connections. My company will work with you throughout the entire process and communicate efficiently to determine your goals and how we can help achieve them. Ideally we will create a long-term relationship and plan with you.

    Additionally, having a good team on the ground is everything. My agent partners always let me know of houses about to come to market, so some off market opportunities could be possible. Send me direct message or we can set up a call if you’d like.

    0Reply
  • Aj Parikh
    Rental Property Investor · Centreville, VA · Member since 2019 · 1k+ posts · 799 votes
    4y

    I am an out of state investor purchasing SFHs and multi families in Cleveland, OH. Obviously, you have these forums to look for different turnkey providers and there are a lot of good ones in the Cleveland area. Let me know if you want to connect and chat about it. 

    0Reply
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