Are Turnkey Rental Properties Actually Profitable for Out-of-State Investors?

[Christopher Rubio]

Hey everyone,

I’m a newer investor exploring out-of-state markets in the $100K–$150K range and trying to figure out the best way to start. I’ve been hearing a lot about turnkey properties — homes that are already renovated, tenant-occupied, and ready to cash flow from day one.

On paper, they sound like a stress-free way to get started (especially if you’re not local), but I’ve also read mixed opinions about whether they really perform as advertised once you factor in management fees, maintenance, and long-term expenses.

For those who’ve bought turnkey rentals:

• Did the numbers hold up after your first year or two?
• How was your experience working with the turnkey provider and property manager?
• Do turnkey properties make sense for building a portfolio, or are they better as a stepping stone to something else (like BRRRR or small multifamily)?

I’d love to hear real experiences — the good and the bad — especially from other out-of-state investors.

Christopher

[Moe Sidd]

@Christopher Rubio,

Yeah, the numbers have mostly held up. A few surprises here and there (repairs, tenant stuff), but overall it’s been solid once you plan for realistic expenses. Cash flow stayed close to what I expected.

Working with the turnkey provider and PM has been good, but it really comes down to who you pick. I spent time vetting both and stayed involved early on, which made a big difference. Some providers just hand you a property and disappear, so choosing the right team is huge.

I think turnkey makes sense if your goal is to build a portfolio without being hands-on. Once you’ve got a few under your belt, you can always scale into more active projects if that’s your goal. It's definitely good to learn the ropes with turnkey first before diving into other investment types.