Columbus Turnkey Houses: Problems

Rental Property Investor · Torrance, CA · Member since 2017 · 33 posts · 35 votes

I bought two properties from Columbus Turnkey Houses at the end of last year. Since then, I have already had an eviction in one house, and now was informed that the paint was cracking from the exterior on the other home, and will have to have the whole house painted or get a violation from the city. I had an inspection and I thought I covered my Ps and Qs, but this is getting ridiculous. Has anyone else had any problems with Columbus Turnkey Houses? Any advice? Thanks.

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Ned CareyPro Member

Moderator

Investor · Baltimore, MD · Member since 2008 · 17k+ posts · 13k+ votes

Remember Turnkey is only one letter away from Turkey :- )

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Edward Brewington
OP
Rental Property Investor · Torrance, CA · Member since 2017 · 33 posts · 35 votes
8y
To update my situation, I talked to RJ, who runs Columbus Turnkey Houses, and they paid for the paint job for the whole home that had a violation. I must say....I was extremely pissed at first, but RJ listened to my complaints and followed through on a home they remodeled. I am thoroughly grateful and completely respect this company once again. I've learned a great lesson.....I need to have more than one objective inspection, talk to more agents and customers of the particular company I am going to do business with, and I need to clearly see what the city requirements are for rental properties before I go forward with my next investment. Lesson learned!
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Patrick Shawn Faherty
Fredericksburg, VA · Member since 2016 · 190 posts · 64 votes
7y
Originally posted by @Edward Brewington:

To update my situation, I talked to RJ, who runs Columbus Turnkey Houses, and they paid for the paint job for the whole home that had a violation. I must say....I was extremely pissed at first, but RJ listened to my complaints and followed through on a home they remodeled. I am thoroughly grateful and completely respect this company once again. I've learned a great lesson.....I need to have more than one objective inspection, talk to more agents and customers of the particular company I am going to do business with, and I need to clearly see what the city requirements are for rental properties before I go forward with my next investment. Lesson learned!
Hi Edward. Any more updates on columbusturnkeyhouses.com? Anyone else with insight on them? Thanks.
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Edward Brewington
OP
Rental Property Investor · Torrance, CA · Member since 2017 · 33 posts · 35 votes
7y
Nothing new as of now. The properties are cash flowing, but one had some serious pipes and drainage problems that I had to deal with. I think turnkey is great if you want something hands-off, but buying old properties (1960 and before) means you will be inheriting unseen problems that are hidden after they remodel the property. For one, I would NOT pay the price they advertise because it's too expensive. I would talk them down. Second, you really need to do your due diligence and get independent comps from another realtor, have your own inspector go out there and make sure the home is up to city code (you call them yourself). Likewise, I think the market is overpriced for turnkey home now and I expect a downturn soon because the "real" economy, the average worker working 2-3 jobs with tons of expenses and debt, is NOT the stock market. The real estate market will be hit hard again. I see a great opportunity coming soon once this market crashes. I'd prepare for that if I was you. I have my reserves ready to pounce once that happens.....I bought a Las Vegas home in 2010 and got more than 50% off from the 2006 price. It's going to happen again.....you can count on it!
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Patrick Shawn Faherty
Fredericksburg, VA · Member since 2016 · 190 posts · 64 votes
7y
@Edward Brewington thanks for the update and advice.
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Han T.
Investor · Columbus · Member since 2017 · 105 posts · 46 votes
7y
Dear @Edward Brewington, could you share your thoughts on their property management services and fees? Thanks in advance.
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Edward Brewington
OP
Rental Property Investor · Torrance, CA · Member since 2017 · 33 posts · 35 votes
7y
Sorry Teo.....I've been a little busy. You're talking about the property management that Columbus Turnkey works with, ERA, right? I have them and they have done well in managing my property, but as of late there have been fees to pay utilities like a $15 per transaction, so I had to pay the bill myself. No problem, but the other PMs I have don't do that, so I was a little disappointed about that. However, they have been on top of everything and quickly resolved any issues I've had. The only problem I see is that they may have too much on their plate and contacting them immediately, although they have a website to communicate through, can be difficult at times. I only have 2 properties with them compared to bigger clients who might have a lot more units. I do think they do good work, but you do need to be on top of your asset and make sure they are managing your property well.......it's the difference of having an asset or it being a liability. Do your due diligence, research on PMs fees and check with other clients on what they think too. Good luck!
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Ned CareyPro Member
Moderator
Investor · Baltimore, MD · Member since 2008 · 17k+ posts · 13k+ votes
7y
Remember Turnkey is only one letter away from Turkey :- )
4 Reply
Edward Brewington
OP
Rental Property Investor · Torrance, CA · Member since 2017 · 33 posts · 35 votes
7y
Ha, ha. LMAO
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Account Closed
Investor · Columbus, OH · Member since 2017 · 861 posts · 1k+ votes
7y
Originally posted by @Ned Carey:

Remember Turnkey is only one letter away from Turkey :- )
Especially for these guys. I'm in the same market. If anyone wants to buy turnkey in Columbus, just buy a nice home off the MLS and then pick your own PM. You will do better in every regard.

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Jay HinrichsBusiness Member
Real Estate Consultant · Summerlin, NV · Member since 2014 · 45k+ posts · 66k+ votes
7y
Originally posted by @Edward Brewington:

Nothing new as of now. The properties are cash flowing, but one had some serious pipes and drainage problems that I had to deal with. I think turnkey is great if you want something hands-off, but buying old properties (1960 and before) means you will be inheriting unseen problems that are hidden after they remodel the property. For one, I would NOT pay the price they advertise because it's too expensive. I would talk them down. Second, you really need to do your due diligence and get independent comps from another realtor, have your own inspector go out there and make sure the home is up to city code (you call them yourself). Likewise, I think the market is overpriced for turnkey home now and I expect a downturn soon because the "real" economy, the average worker working 2-3 jobs with tons of expenses and debt, is NOT the stock market. The real estate market will be hit hard again. I see a great opportunity coming soon once this market crashes. I'd prepare for that if I was you. I have my reserves ready to pounce once that happens.....I bought a Las Vegas home in 2010 and got more than 50% off from the 2006 price. It's going to happen again.....you can count on it!
just curious do you think markets like Vegas will drop 50% all of a sudden again ?? and if so why would they . ? I am always curious what data or thoughts they have that were create another 07 to 2011 melt down ?? investors on this site have been predicting this for about 4 years now. So what are your thoughts.
I can see it in markets were prices are propped up by out of state investors buying rentals.. if they stopped buying rentals then the rental stock would revert to what a local would pay for a given cash flow.. so prices would probably fall but not sure about by how much.. I also wonder where all these markets would be if the demand for real estate was from locals only. ?? thoughts on this ?
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Matt R.
Sherman Oaks, CA · Member since 2013 · 3k+ posts · 2k+ votes
7y
Originally posted by @Jay Hinrichs:

Originally posted by @Edward Brewington:
Nothing new as of now. The properties are cash flowing, but one had some serious pipes and drainage problems that I had to deal with. I think turnkey is great if you want something hands-off, but buying old properties (1960 and before) means you will be inheriting unseen problems that are hidden after they remodel the property. For one, I would NOT pay the price they advertise because it's too expensive. I would talk them down. Second, you really need to do your due diligence and get independent comps from another realtor, have your own inspector go out there and make sure the home is up to city code (you call them yourself). Likewise, I think the market is overpriced for turnkey home now and I expect a downturn soon because the "real" economy, the average worker working 2-3 jobs with tons of expenses and debt, is NOT the stock market. The real estate market will be hit hard again.  I see a great opportunity coming soon once this market crashes. I'd prepare for that if I was you. I have my reserves ready to pounce once that happens.....I bought a Las Vegas home in 2010 and got more than 50% off from the 2006 price. It's going to happen again.....you can count on it!
just curious do you think markets like Vegas will drop 50% all of a sudden again ?? and if so why would they . ? I am always curious what data or thoughts they have that were create another 07 to 2011 melt down ?? investors on this site have been predicting this for about 4 years now.    So what are your thoughts.
I can see it in markets were prices are propped up by out of state investors buying rentals.. if they stopped buying rentals then the rental stock would revert to what a local would pay for a given cash flow.. so prices would probably fall but not sure about by how much.. I also wonder where all these markets would be if the demand for real estate was from locals only. ?? thoughts on this ?
I just don't have any first hand experience to see what might happen. I can speculate that maybe in some pockets there would be much less inventory ready to rent if left to local organic growth or lack there of. Many abandon homes would be left alone or until the locals thought it was worth bringing back vs going the wholesaler route on up. It might just goto tax sales instead, and stay in tax sales for awhile. So it is possible locals would be getting more on the rents with less inventory and likely in some pockets they would have preferred that to having all this OOS dumb money coming in and creating higher overall vacancy rates or the dumb money competition for renters.  OTH if the OOS re-established some pockets and maybe that helped the locals next door.
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Jonathan Oh
Investor · Las Vegas, NV · Member since 2019 · 499 posts · 259 votes
7y
Originally posted by @Edward Brewington:

Nothing new as of now. The properties are cash flowing, but one had some serious pipes and drainage problems that I had to deal with. I think turnkey is great if you want something hands-off, but buying old properties (1960 and before) means you will be inheriting unseen problems that are hidden after they remodel the property. For one, I would NOT pay the price they advertise because it's too expensive. I would talk them down. Second, you really need to do your due diligence and get independent comps from another realtor, have your own inspector go out there and make sure the home is up to city code (you call them yourself). Likewise, I think the market is overpriced for turnkey home now and I expect a downturn soon because the "real" economy, the average worker working 2-3 jobs with tons of expenses and debt, is NOT the stock market. The real estate market will be hit hard again. I see a great opportunity coming soon once this market crashes. I'd prepare for that if I was you. I have my reserves ready to pounce once that happens.....I bought a Las Vegas home in 2010 and got more than 50% off from the 2006 price. It's going to happen again.....you can count on it!
Regarding average worker with 2-3 jobs - just curious where are you getting this data from? And we certainly do have an issue with consumer debt. Cheap money led to credit card, auto, and student loans rising to unprecedented levels right now. In my circle of friends alone, I have several spending recklessly.
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James Wise
Real Estate Broker · Cleveland Dayton Cincinnati Toledo Columbus & Akron, OH · Member since 2013 · 31k+ posts · 20k+ votes
7y
Originally posted by @Edward Brewington:

I bought two properties from Columbus Turnkey Houses at the end of last year. Since then, I have already had an eviction in one house, and now was informed that the paint was cracking from the exterior on the other home, and will have to have the whole house painted or get a violation from the city. I had an inspection and I thought I covered my Ps and Qs, but this is getting ridiculous. Has anyone else had any problems with Columbus Turnkey Houses? Any advice? Thanks.
Doesn't seem like anything out of the ordinary here, or at least nothing that couldn't be foreseen. If you have any house built prior to 1978 & the exterior is just painted wood this is something to be cognizant of. Since houses built prior to 1978 usually contain lead in them the paint is constantly going to need to be touched up, scraped, repainted etc. Vinyl side it and you won't need to worry again.
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Darius Ogloza
Investor · Marin County California · Member since 2018 · 1k+ posts · 2k+ votes
7y
Historically, there were 7 financial panics in the U.S. in the late 18th/19th centuries, 2 in the 20th century (1907 and 1929) and thus far 1 in the 21st century (2006/7). The trend line is good as our financial markets stabilize. There will always be folks perma-bears who believe the sky is about to fall. That said, buying on dips is how money can be made.
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Edward Brewington
OP
Rental Property Investor · Torrance, CA · Member since 2017 · 33 posts · 35 votes
7y
What worries me is how the stock market has reached its highest level while the US and China are in a trade war, our farmers are being bailed out, perhaps losing the customers they once had, talks of lowing the interest rate (if the economy is strong why lower the rate) and bank stocks are going down, 17% from the peak in 2018.....a sign that something is up. Speaking of banks, Deutsche Bank is down 85% from its peak in 2007.....the stock has been spiraling down. It has an exposure of 43 trillion (in Euros) in derivatives (CLOs) and just created a "Bad Bank" to "restructure" their problem. How much exposure do US banks have to DB? That's a good question. Also, if anything happens to DB, and I think its most likely a very severe crisis now and they're trying to hide this, then this could be a major shock to the world economy......DB is 3X larger than Lehman Brothers which pretty much signaled the 2008 crash......the signs of this trend were there well before Lehman, but ignored. On top of this, average Americans are just getting by where 40% would have major problems if an unexpected expense of $400 arose. This economy in my eyes is fake, a massive bubble, a house of cards about to crumble and I'm wondering why I'm the only one who sees this......even Jim Cramer, whose advice I take with a grain of salt, said the other day, "The real world is much worse than what the stock market indicates." You think? Ha, ha. I'd say prepare for the worse and be ready to buy when everything seems depressed and at its worst because this economy makes no sense!
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Caleb Heimsoth
Rental Property Investor · Durham, NC · Member since 2016 · 7k+ posts · 7k+ votes
7y
@Edward Brewington you’re right the sky must fall, sell everything at a 50 percent discount to me. I’ll take the risk on for you
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Darius Ogloza
Investor · Marin County California · Member since 2018 · 1k+ posts · 2k+ votes
7y
I will also take the other side of that trade.
1 Reply
Edward Brewington
OP
Rental Property Investor · Torrance, CA · Member since 2017 · 33 posts · 35 votes
7y
As I said before, I'm prepared. I'm ready to pounce when it crumbles back to reality, and if you are buying now I think you're taking a huge risk. My question to you is......Why do you think this market is strong? Why do you have confidence to buy more now? Do you think the market is inflated, overpriced? If not, why? I'm curious.
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Steven Ko
Sunnyvale, CA · Member since 2018 · 191 posts · 178 votes
7y
@Edward Brewington you watch too much news.
1 Reply
Edward Brewington
OP
Rental Property Investor · Torrance, CA · Member since 2017 · 33 posts · 35 votes
7y
I would say I'm informed, not blindly guessing and believing word of mouth advice, doing my due diligence. I've done very well with all my properties and I plan on that continuing.
Again, if any of you want to answer this....
Why do you think this market is strong? Why do you have confidence to buy more now? Do you think the market is inflated, overpriced? If not, why? Now, I'm really curious.
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