Turnkey/Buy and hold

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Turnkey/Buy and hold

Joe Crooks
Orange, CA · Member since 2017 · 14 posts · 6 votes

HI BP just wanted to introduce myself Im new to investing looking to buy my first rentals I have been researching a few markets Memphis, Akron, Columbus, Dayton, Toledo ext. just ready to get my feet wet looking for cash flow to eventually supplement my retirement. I would appreciate any advice from those of you already doing it! Thanks have a great one!

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Mark AinleyBusiness Member
Property Manager · Roselle, IL (Chicago Suburb) · Member since 2013 · 2k+ posts · 1k+ votes
9y

@Joe Crooks Congrats on your plan.  Be sure to understand your market and the local economy.  A lot of turnkey buyers are paying top dollar in some rough areas where if the bottom falls out those areas will be first to collapse or not appraise. 

MUST READ TIPS: 

1.Turnkey is more about the property manager you hire than the property you buy.  We are watching a lot of turnkey buyers in Chicago that 1-3 years after their initial close the property and the buyers investment has collapsed due to poor management. It is now costing them a year or twos worth of income to get back on track.

2. Get a home inspection. Almost anywhere you are buying in the midwest you are buying 50-120 year old homes and they come with their issues and you want to make sure you are not buying those problems. Replacing a section of floor, door, or light fixture is pennies compared to the $7,000-$10,000 tuck point job the seller never completed. 

3. Find previous buyers from that provider and get feedback. Sellers tend to not like to hand out previous buyers info for privacy issues but BP is a great place to do that. 

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  • Joshua Hollandsworth
    Cleveland, OH · Member since 2017 · 161 posts · 38 votes
    9y
    Hello! I would highly suggest visiting Ohio before you invest here. Crime is in every city. I'm sure it looks good on paper, but once you visit the area you may have a totally different opinion. Akron has a ton of WarZone neighborhoods... it goes block by block! I've seen some Out of state investors get burned by buying homes in bad areas that contain generally lovely homes. Good Luck!
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  • Tom Ott
    Equity Raiser and Turnkey Provider · Cleveland, OH · Member since 2016 · 4k+ posts · 1k+ votes
    9y
    Originally posted by @Joshua Hollandsworth:
    Hello! I would highly suggest visiting Ohio before you invest here. Crime is in every city. I'm sure it looks good on paper, but once you visit the area you may have a totally different opinion. Akron has a ton of WarZone neighborhoods... it goes block by block! I've seen some Out of state investors get burned by buying homes in bad areas that contain generally lovely homes. Good Luck!

    I agree. When many people come to Cleveland, they wonder why I often do not suggest looking at the $40k home for sale. It is because it is almost always in a warzone.

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  • Joshua Hollandsworth
    Cleveland, OH · Member since 2017 · 161 posts · 38 votes
    9y
    Not necessarily! You can buy a 40k property in a good neighborhood. But they are usually small SFH in the Old Brooklyn/ West Side Area! Cleveland is very hard to analyze.
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  • Tom Ott
    Equity Raiser and Turnkey Provider · Cleveland, OH · Member since 2016 · 4k+ posts · 1k+ votes
    9y

    Yes, but often they property needs a lot of work and you cannot charge much for rent. It throws off the entire ROI.

    0Reply
  • Tim Debronsky
    Full-Time Investor & Agent · Amherst, OH · Member since 2014 · 149 posts · 50 votes
    9y

    @Joe Crooks Let me know if you have any questions about the Cleveland market.  I've been investing here for 14 years.

    0Reply
  • Ali Boone
    Real Estate Coach · Venice Beach, CA · Member since 2012 · 6k+ posts · 3k+ votes
    9y

    Sounds good! Message me anytime on here or email me (email in profile...I check emails there more often than on here)

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