Beginning analysis turnkey

4 Replies

I have come across several turnkey properties, and in my ongoing efforts to learn and educate myself I am hoping to find some guidance in what would typically be the next step in analysis, based on the information I have.  The following are the details available:

  • Bed/Bath #
  • Sq. Ft.
  • Current rent/month
  • Lease end date
  • Routine maintenance cost for 2018
  • Annual taxes for 2018
  • Sales price

What questions, concerns, and analysis  would you recommend determining for someone going through this.  True newbie, assume I know nothing, which I know nothing.  What formulas/spreadsheets would you recommend utilizing to ensure a good deal is somewhere in here. 

My goal is to consume knowledge.  

May be too big a question for a single post.  

    I would make sure I knew the market cold before making a purchase.  Investors buy markets as much as they buy an individual property.  You want to understand whether there are demand drivers in the market that are positive for rentals.  You also want to understand vacancy rates; desirability of specific neighborhoods; and whether there is a path of progress you can get in front of.  

    Remember that, with turnkey, you are paying a premium for the convenience.  Ideally, you would want to know the returns on comparable deals if you found them yourself so that you can attempt to measure that premium and determine if it's worth the price.

    @Hezekiah Butler I can't find the thread anymore but I googled for a spreadsheet to help me run the numbers. That google search brought me here and to a thread where I was able to get a Spreadsheet that I can't find here in the forums anymore. That being said send me a message with your email and I will share it with you. Also, there is a rental calculator built into the platform that you can use for free 5 times and then you would need to purchase the pro subscription. 

    Originally posted by @Hezekiah Butler :

    I have come across several turnkey properties, and in my ongoing efforts to learn and educate myself I am hoping to find some guidance in what would typically be the next step in analysis, based on the information I have.  The following are the details available:

    • Bed/Bath #
    • Sq. Ft.
    • Current rent/month
    • Lease end date
    • Routine maintenance cost for 2018
    • Annual taxes for 2018
    • Sales price

    What questions, concerns, and analysis  would you recommend determining for someone going through this.  True newbie, assume I know nothing, which I know nothing.  What formulas/spreadsheets would you recommend utilizing to ensure a good deal is somewhere in here. 

    My goal is to consume knowledge.  

    May be too big a question for a single post.  

      You can download some really good spreadsheets from Lane Kawaoka's website. It's called Simplepassivecashflow.com. He has a whole section dedicated to turnkeys. His spreadsheets will cover pretty much any variable that can be measured. Spend some time going through his articles.... they provide some very good first hand perspectives on Turnkey investing as he has significant experience with them. 

      Personally, I feel that spending time analyzing the numbers on a TK deal, while important, can be counterproductive if you spend a lot of time on it. In my admittedly short experience in dealing with TK's, I strongly believe that finding a provider you can trust is higher up on the waterfall than location or trying to do a detailed analysis. 

      @Mike Roy, @Tyler Gibson, and @Tony Kim thanks for the comments and sharing.  

      These are some pocket listings that were shared in a group I am associated with.  Totally hear you on the premium payment for turnkeys.  These TK's were not from a provider, but rather an agent with some pocket listings.  


      To add another question, to my question, what do you do to study the markets? I am an agent, so I study the hotsheets daily for a couple markets that I work in for clients, and that I am very interested in investing.