Turnkey real estate company recommendation for Texas market

19 Replies

Any good suggestions for a turnkey real estate company which cover Texas market ? Me and my husband currently live out of US now, and we are interested to buy a few properties in US to hold long term and rent out for income stream. Particularly we are interested in Texas area since my husband are originally from texas and has a lot of family lives in Texas. Plus we believe Texas has great long term potential. Both of us has a full time professional job and is currently based out of country ( in Asia ) . We are looking for a good reputable company can handle all those logistics like maintenance, managing the renters which give us LEAST trouble and a piece of mind. Appreciate if anyone has inputs ! :)

Hi Cathy. We are in Dallas-Fort Worth and Indianapolis and work with a lot of foreign investors. I agree with you on the long term value of investing in Texas. DFW has a high demand for rentals. Even the bad neighborhoods are appreciating like crazy. I prefer staying in neighborhoods that have at least an average rated school district. It’s the best cost-benefit. But it’s getting very difficult to find those rentals off market. And on the MLS the prices just don’t make sense from an investor perspective.
PM me and I’d be happy to discuss your goals and see if we are a fit.

Originally posted by @Cathy Li :
Any good suggestions for a turnkey real estate company which cover Texas market ? Me and my husband currently live out of US now, and we are interested to buy a few properties in US to hold long term and rent out for income stream. Particularly we are interested in Texas area since my husband are originally from texas and has a lot of family lives in Texas. Plus we believe Texas has great long term potential. Both of us has a full time professional job and is currently based out of country ( in Asia ) . We are looking for a good reputable company can handle all those logistics like maintenance, managing the renters which give us LEAST trouble and a piece of mind. Appreciate if anyone has inputs ! :)

 I do not know much about the Taxes market, but I always suggest making sure they are a TRUE Turnkey company. Ideally, the will own, renovate and manage the property all in house. It should be all done in house with them.

Try looking at:

What to Ask When Working With a Turnkey Provider

and

The Best Types of Markets for Profitable Turnkey Properties

If you wanted Texas turnkey id probably go with Memphis invest who’s in Houston and dfw.

That being said I would look long and hard about buying rentals in either area. The property taxes are extremely high so you need to know that going in, they also tend to reaccess them every year, which means they’ll likely keep going up.

https://texasturnkeyproperties.com/id-do-a-deal-in...

Think growth. Economic, job, population. Think what fuels that? To obsess about property taxes in a place like Texas is to miss the point IMHO. To have a successful rental property/portfolio you need? Renters! 

What do renters need to be good tenants? Jobs! 

Job growth in TX is not a new phenomenon,  it's been happening for the last 25 years. Texas, and specifically Houston have diversified and modernized their economy like no other place in the country.

In my opinion, there is no place in the country that compares with Texas for a business climate that is friendly to real estate investors. And there is no place in Texas that combines all the elements better than Houston. Critical Mass [4th largest metroplex]  and a business climate that allows for quick and efficient evictions and nothing that looks like rent control. With a good competent Property Management company at your side,  it is difficult to find a better place than Houston, TX to start, or build, your portfolio. 

Cathy - I am actually in a very similar situation to you. My Husband and I are Americans but living overseas in Asia. We have been looking at Texas (both Houston metro and Dallas/Ft Worth metro) the past 3-4 months.

My focus has been SFH, 3bd/2ba in B/B- neighborhoods.

I have been connected to 3 different turnkey Operators in Texas but have not have been able to find any properties that even break even, let alone cash flow. The current rental rates have not kept up with purchase price (which have appreciated quite a bit the past 5 years).

When the turnkey Operators provide pro formas with 1-2% for vacancy and 1-2% for maintenance...it will show positive cash flow. But I’m much more conservative and just don’t find those numbers reasonable at all.

I even started working with a Real Estate agent in hopes she might be able to find me something that at least broke even and she hasn’t been able to yet.

If you or anyone reading this has had luck and can share how they have been able to purchase in these two markets, I’d love some insights.

@Jackie T. Jackie, thanks for sharing your experience. We are in very similar situation and my target is also SFH, 3bd/2 bath in B neighborhood. But I'm also thinking to target at condo that seems involve less maintenance work in long run. For the math, I haven't figure that in details yet, but yes, should be more conservative on the expense figures especially we are based in overseas. And by the way, did you try looking for deals on roofstock? I look online and they seem to be reputable. I have book a call with this company tomorrow morning to check that out.

@Cathy Li as an investor in SFR rental properties in San Antonio the problem that I feel you're having is you are trying to be very conservative. Now, I'm not saying this is an issue, I'm just saying this makes it harder to get deals.

When I buy a house I make sure to update as much of that house as possible in order to limit my future expenses to minor stuff. I recommend you buy fully updated houses as this will help you in keeping your CAPEX low.

In SA we target houses between $1100 and $1600/mo rents because that keeps us in B/C neighborhoods and they rent within 2 weeks. This helps to keep turnovers low and rented longer.

Companies like roofstock and homeunion are in my opinion a bad choice because the deals they put out have a gross profit of 7% on average. That's terrible.

Yes, property taxes are higher in in some areas but keep in mind Texas has seen really high population growth and SA is a very affordable city with jobs and a great infrastructure so I see rents also keeping up with the taxes.

If you have any questions please reach out. Just keep in mind that the more risk you take the more money (potentially) you can make and the less risk you take, you will make less money also. You need to find the area that you will be comfortable with risk and reward. 

Originally posted by @Jackie T. :

Cathy - I am actually in a very similar situation to you. My Husband and I are Americans but living overseas in Asia. We have been looking at Texas (both Houston metro and Dallas/Ft Worth metro) the past 3-4 months.

My focus has been SFH, 3bd/2ba in B/B- neighborhoods.

I have been connected to 3 different turnkey Operators in Texas but have not have been able to find any properties that even break even, let alone cash flow. The current rental rates have not kept up with purchase price (which have appreciated quite a bit the past 5 years).

When the turnkey Operators provide pro formas with 1-2% for vacancy and 1-2% for maintenance...it will show positive cash flow. But I’m much more conservative and just don’t find those numbers reasonable at all.

I even started working with a Real Estate agent in hopes she might be able to find me something that at least broke even and she hasn’t been able to yet.

If you or anyone reading this has had luck and can share how they have been able to purchase in these two markets, I’d love some insights.

Hey @Jackie Tran, you are right, our DFW market has appreciated so much, that most neighborhoods you just can't get a positive cashflow from rentals. If you are looking traditional turnkey or MLS, it will be very very difficult for you to buy a property.

Ideally, you will find an off-market property. Since you are overseas, it would have to be either through a wholesaler, or a service provider that act as your boots on the ground and would also be managing these properties. There is a huge benefit in having a trustworthy local partner, especially because many of the bigger wholesalers in DFW are also feeling the squeeze, and so their numbers are just inflated. Any experienced investor will see when their "deal" is not right. Some people get upset about these. I have learned to just move on to the next deal and not get hung up on them having misleading numbers.

Anyway, most likely, and still, with a lot of patience, you will only find a cashflowing property in DFW by buying an off-market deal with some equity.

@Cathy Li

I’m not a fan of condos. You essentially end up paying for the extra expenses through the HOA anyways so you are not really minimizing expenses. I have a townhouse and the HOA keeps increasing annually which takes away from my overall profits.

I find that having a really good property management company is the most important factor for people like you and I. So do make sure when you interview the turnkey operator, that you speak to the PM side too. Of course, you can always go with a different PM after purchase.

I haven’t checked out roofstock yet. Will look into them. To be honest, I haven’t found a big issue with any of the Turnkey Operators I’ve spoken with in Texas. I just run my own numbers rather than accept what is shared and I haven’t found anything where the numbers work for me. Ultimately, the rent vs purchase price ratio just doesn’t work in these markets unless you get something below market price. Most of what is offered by the turnkey operators are at market price. So nothing against the operators but the math just doesn’t work for me. I’m trying to network and meet others who might have something off market that will work for me. I’m patient and will look at other markets if needed.

@Jackie T. If you don't mind sharing, have you got any luck finding your rental property yet? 

I'm also looking to get a rental property as side investment. People around me are all talking about Texas but after I've done my own research and calculation I felt a bit disappointed at the cash flow there. Price-to-rent ratio isn't impressive and high property tax justmakes the return even worse. I'll probably start looking into other markets like Kansas City. I'd like to know your insights since you seem to have been in the field longer. Thanks.

@Xiangnan Shi   a lot of people are attracted to some of the Texas markets because of the strong population and job growth but as you've discovered, TX has very high property taxes and insurance rates which kill cash flow. If cash flow is your primary goal then you are better off looking at the Midwest and Southeast. I'm a big proponent of Indianapolis and Kansas City. Both have growing populations and jobs combined with strong cash flow. I'd be happy to talk to you about either if you're interested in exploring either one.

@Cathy Li Being from a city or having family that lives in a city is not a strategic reason for choosing a market. It say's nothing about whether it is a good investment market and a market that fits your investment objective. Have you defined and quantified your objectives and if so, have you determined that any of the TX markets will allow you to achieve them? If so, and you decide TX is right for you then you should be talking to Memphis Invest.  I encourage you to clearly define what your goals and criteria are first before making a decision on a market just because family lives there.

I've got connections in OKC if you end up expanding beyond Texas! I think the main differences would be lower prices in OKC and more insulation to recession .. all depending on where you're looking in Texas of course. In OKC you can get solid cash flowing C class for 60k.