How to find a turnkey investment property??

Question

I have capital available and would really like to just cut down on the learning curve and just buy into a turnkey multi-family or multiple single family homes. First question is do they even exist in multi-family and where is the best place to start looking?

Omar Khan · Answer

@James Fonteno You are thinking about a stabilized multifamily which is classified as a yield play. The yield being the income the property throws off. These can be great assets if you have a sizable portfolio and are looking for a combination of high yield and capital preservation.

Unlike value-add plays, there is little, if any, capital appreciation potential. This is because there should be minimal deferred maintenance, revenue upside (rents are in-line with market) or expense optimization left. Hence, the turnkey part.

You won't be cutting down on any learning time by getting a turnkey multifamily. In fact, you might end up learning nothing at all.

In this stage of the cycle, turnkey SFRs are expensive (relative to market fundamentals) as investors have piled onto these assets. If you have money, you can look into buying package deals or investing in funds that invest in single family portfolios to get a better bang for your buck.

Bryan Blankenship · Answer

Turnkey MF exists for sure, we're selling 2 to repeat investors today and we sell them often in the 2-20 unit range.

Todays two:

23 unit B class MF at $1.15MM. Fully rehabbed, leased up the first rehabbed unit yesterday at $875 and the prior rents were $725.

2 unit A+ class high-end duplex $225K. $2600 gross, all expenses paid 100% by tenants. Lower CAP here as it's a higher end area and building.

We have had properties as low as $85K for a C class duplex, $175K for B class 4 units, on up to $2.2MM for a 48 unit building we're turning and remodeling now.

They are definitely out there!

We also offer our investors a mix of "value-add." If they come in before we do all the work and buy up front and we remodel and lease up on their dime instead of ours.....the opportunity cost of having our money tied up obviously means we can offer the investor a better price.

Jay Hinrichs · Answer

there are plenty of MFR that would be termed turnkey.. its investor buy a value add run down MFR and rehabbing it getting rents to market then exiting.. those are available all over the US>

Larry Fried · Answer

There are some turnkey companies that deal in multifamilies, that I know of in Chicago, but I don't recommend them or the areas they invest in. SFR is really the way to go in turnkey for most of the cash flowing areas.

Antoine Martel · Answer

They do exist in multifamily, but they are just harder to come by.

They are much easier to come by with the single family home space.

If you're interested in single family homes turn key I can help you out.

Mike D'Arrigo · Answer

@James Fonteno What market are you focused on? MF is more scarce than SFH and is much harder to find in some markets than others. It all depends on where you're looking.

Omar Khan · Answer

Thanks for the kind words. Looking forward to connecting with you.

Jay Hinrichs · Answer

there are a lot of companies that specialize in rehabbing and re position MFR.. they are not just coined turn key or in the turn key space as that term seems to be used for SFR's

James Fonteno · Answer

@Bryan Blankenship that’s exactly what I’m looking for!!!

Tom Ott · Answer

Yes, Turnkey MFRs are real. They are just harder to find. Do you know what you want to go with first? Some find jumping into MFRs first much more challenging.

Try looking at:

Single Family vs. Multi-Family Investments

How to find a turnkey investment property??

How to find a turnkey investment property??

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