My Birmingham Beauty- First Turnkey- PICS

30 Replies

Good afternoon BP Fam-

After immersing myself with rich content the past 2 months at Bigger Pockets, and the endless streams of podcasts; I have my first turnkey rental real estate success story to share.  I contracted this fixer upper back on May 17, and we closed today 7/1. Here are the numbers:

1. Purchase Price $114,000, with closing costs, all in around $119K

2. 1 yr Lease secured (tenants moved in) $1325/month, 10% more than my target rent.  Location and quality of the rehab played a big role in getting a tenant so quickly; tenant signed the 1 year lease even before the property was finished.

3. My independent home inspection was very clean.  I should not have any major capex issues the next few years, but will be banking all of the cashflow just in case.

Here she is:

Congratulations!  That is an exciting step. 

We are working on a turnkey purchase in Birmingham that is not going nearly that well.

@Rollan Dizon

 A big congrats on getting your first investment property, and doing so turnkey.  It looks like a beauty.  I have been a turnkey investor now for several years.  

How much did the rehab cost you?

@Ann Howell sorry to hear that you process is not going well. Was it the property itself or the service of the turnkey provider?

@Larry Fried Thank you Larry! Appreciate it. I still have 3 more deals (2 closed but in the middle of rehab, 1 duplex in contract) to go finish up. I am hoping they go as smoothly as this first one.  I am also up to my eyeballs converting my previous residence in California to a rental. I am buried with real estate...in a good way.

@Dan Falcon My purchase price as "all in" including rehab costs.  The property appraised for 130K, and estimates from various internet sources peg it at 155k+.  I am not so worried about price as I am about how much we can rent it out.  Hope that helps! Thanks.

Congrats, that's a nice house!

@Pancham Gupta Thank you Pancham, I certainly hope so!

@J Benoit Thank you J! I am looking forward to what you and Jarrod can do with my Hendrix property.  You firm is highly recommended for Birmingham property management!

Congratulations! It was probably a very clean HUD on July 1st.

We purchased our first property a year ago today - it's been an awesome ride and year. Wishing you many more successes! 

Congrats!  You planning on getting the next one in birmingham also?

Thanks @Rollan Dizon !  We look forward to taking care of you ;-)

@Rollan Dizon

  as you know the TK provider and PM is key.. glad you found the gold standard!

Congrats @Rollan Dizon , great looking house! You mention turnkey, then fixer upper, can you elaborate on that? Did you buy it pre-rehab?

@Billy Maloney Thanks brother! So relieved the first one turned out well.

@Jonathan Makovsky It was a very clean HUD. Can't wait to see my first rent check!

@Alexander A. Yes, already closed on another Birmingham property, but it is in the middle of the renovation. I bit off a lot with my first experience, 2 in Birmingham, and 2 in Indianapolis.  

@Jay Hinrichs You said it! A reputable turn key operator is the key, and its the property manager that will make these properties perform.

@Kevin Trumbull The provider I went through has a couple of purchase options.  This one i just closed, was delivered all ready.  The intent was that it will be fully rehabbed and tenanted before COE. Fortunately, I still got very equity on this house based on appraisal.  I have another property purchased through the same provider, but it is a "wholesale" option. I bought it pre-renovation (COE); but they are managing and overseeing the whole renovation and finding my tenant.  The advantage of this is I get more equity upfront.  Does that make sense?

@Rollan Dizon just wondering why Birmingham?  What drove you to purchase here and not other locations? 

Originally posted by @Rollan Dizon :

Good afternoon BP Fam-

After immersing myself with rich content the past 2 months at Bigger Pockets, and the endless streams of podcasts; I have my first turnkey rental real estate success story to share.  I contracted this fixer upper back on May 17, and we closed today 7/1. Here are the numbers:

1. Purchase Price $114,000, with closing costs, all in around $119K

2. 1 yr Lease secured (tenants moved in) $1325/month, 10% more than my target rent.  Location and quality of the rehab played a big role in getting a tenant so quickly; tenant signed the 1 year lease even before the property was finished.

3. My independent home inspection was very clean.  I should not have any major capex issues the next few years, but will be banking all of the cashflow just in case.

Here she is:

Looks good mate,

Well done.

@Engelo Rumora

 Thank you Engelo!  We will be talking after these current projects.

@Angel Rosado

I was location agnostic. After a review of different properties, locations and RTV ratios, it just happen to be that Birmingham fit the bill.  The 2021 World games will be held there and there is a revitalization going on in the city. There is an emergence of nice restaurants and foodie favorites that is becoming a foodie destination in the south. There are other markets I'm looking into. I have 2 in Indianapolis, and looking closely in Ohio. Kansas is also a target but prices are heading up quite a bit. Hope that helps!

Originally posted by @Rollan Dizon :

@Engelo Rumora

 Thank you Engelo!  We will be talking after these current projects.

Thanks mate

No rush :)

@J Benoit - interesting properties.  I might have to look at your company for my next turn key purchase. 

@Rollan Dizon very nice!

I am originally from Alabama.  My family still lives there, about 1hr. North of Birmingham.

Your turnkey success has peaked my interest.  I will likely be contacting the folks that did so good by you.  

Congratulations.

Thank you Bekhizwe!

@Mike Thomas Best of luck! Let me know if there is anything I can do to help.

@Rollan Dizon -- Nice property.  Looks like a good find.   Not sure of the neighborhood, but based on your comments and the photos it would appear to be in a good area.

We really like Birmingham.  Been selling more properties there lately so I have to believe that there is increasing interest in the market.

Continued success!

Free eBook from BiggerPockets!

Ultimate Beginner's Guide Book Cover

Join BiggerPockets and get The Ultimate Beginner's Guide to Real Estate Investing for FREE - read by more than 100,000 people - AND get exclusive real estate investing tips, tricks and techniques delivered straight to your inbox twice weekly!

  • Actionable advice for getting started,
  • Discover the 10 Most Lucrative Real Estate Niches,
  • Learn how to get started with or without money,
  • Explore Real-Life Strategies for Building Wealth,
  • And a LOT more.

Lock We hate spam just as much as you

Join the Largest Real Estate Investing Community

Basic membership is free, forever.