My Turnkey Portfolio

[Lance Robinson]

Hey All - I wander around and rarely post on here, but thought I would share my real Real Estate returns for my turnkey portfolio. I get asked a bunch of questions about Turnkey and would be more than willing to answer any Qs about specific TK companies via message, but trying to avoid recommending anyone via the forums.

I owned 4 TK properties for the entire year of 2016. They were all 70-75% LTV and had the following returns:

16%

19%

23%

11%

I owned 2 TK properties that I had for 11 months out of the year, and the returns looked like this:

-15%

24%

Yes, that is a negative. I've learned a lot over the past couple of years in terms of providers, what to look for/not to look for, how to do proper due diligence, etc. Most importantly, I've learned that turnkey is an illusion. The idea of paying market for a house that is tenanted and assuming it's as easy as getting a check every month isn't the case. The idea that it is ready to go and no work is needed is also not always the case. If anybody is searching tk, please ask away!

[Tom Ott]

Originally posted by @Lance Robinson:

Hey All - I wander around and rarely post on here, but thought I would share my real Real Estate returns for my turnkey portfolio. I get asked a bunch of questions about Turnkey and would be more than willing to answer any Qs about specific TK companies via message, but trying to avoid recommending anyone via the forums.

I owned 4 TK properties for the entire year of 2016. They were all 70-75% LTV and had the following returns:

16%

19%

23%

11%

I owned 2 TK properties that I had for 11 months out of the year, and the returns looked like this:

-15%

24%

Yes, that is a negative. I've learned a lot over the past couple of years in terms of providers, what to look for/not to look for, how to do proper due diligence, etc. Most importantly, I've learned that turnkey is an illusion. The idea of paying market for a house that is tenanted and assuming it's as easy as getting a check every month isn't the case. The idea that it is ready to go and no work is needed is also not always the case. If anybody is searching tk, please ask away!

Seems like things are going strong! Keep it up! Turnkey can be very profitable for many. Turnkeys are not an issue for others. Many times it depends on the market and the provider. Ideally, you want a provider who has already done the rehab and currently owns the home. There NEEDS to be a tenant in place or it is not a true turnkey. If the home was done correctly there should not be any maintenance issues. It should be like investing the stock market....money in...money out.