Turnkey rentals? What cities are good this year?

Question

Hello, I last asked this question about nine months ago, but of course, things have changed.  I have California clients looking for turnkey SFRs and small multi-families for a buy-and-hold strategy.  What cities are good this year? Has anybody invested in OKC? Are any areas "dead"? Has anybody heard anything about Albuquerque? And why is Memphis not on the radar? Full disclosure: I own two properties in Memphis and they are both cash-flowing.  I also own in Milwaukee, which is cash-flowing as well.  I would love your feedback.

Mark Hart · Answer

Hey @Judy Graff !

Memphis has been doing quite well as a great deal of the properties in A neighborhoods (especially new construction properties)  here in town are coming in over appraisal value!

Nicole Hoss · Answer

@Judy Graff I'm still seeing a lot of success in Indy, but I've also heard that Memphis has not "cooled". I think you'd be good with either!

Jason Hopkins · Answer

@Judy Graff  Memphis, Memphis, Memphis!!!

Todd Crippen · Answer

@Judy Graff, I agree with @Mark Hart that Memphis is a great market. I would also look at Kansas City, Jacksonville, and Indianapolis.

I own a turnkey company in Kansas City and we have had great success in our market. Please reach out if you would like more information.

The most important factor is finding a good company to partner with in a strong market. Review their policies and check to see if they have good in-house property management. A good company in a strong market should be able to offer inventory with safe and consistent returns.

Judy Graff · Answer

Thanks! If you Google me, you can get my direct email.

CJ Berina · Answer

@Judy Graff Hey Judy,

I noticed you're out here in the Valley. I'm based in Northridge and host one of the SFV RE Meetups out here. I'm also looking to purchase in Milwaukee. I'd love to connect and talk real estate some day. I'll message you!

Mike D'Arrigo · Answer

@Judy Graff there are a lot of good cash flow markets still. Look for markets with affordable homes, growing populations and jobs, and diverse industry. Also look for favorable landlord/tenant statutes, property tax rates and insurance rates. Personally, I like Indianapolis and Kansas City for all of these reasons.

Judy Graff · Answer

Thank you!

Hank Keller · Answer

Hi @Judy Graff - I have 9 properties in Indianapolis (just bought 2 more this year) and 1 in Charlotte with the same TK provider and have worked with them for the past 6 years. Indy is business friendly and has a AAA credit rating, lots of jobs and has had a steady 3% population growth over the past 30 years. The most recent SFH i purchased this year was $75k. On average my 9 in Indy are getting an 8% return. Also purchased an AirBnB this year and while still going through rehab, it’s projected to get 12-15% return.

Charlotte is similar to Indy from a metric perspective except there growth rate is much higher right now and i’m Seeing that in estimated appreciation of 15%.

Hope that helps...

Hank

Judy Graff · Answer

Thank you! I will surely reach out soon.

Turnkey rentals? What cities are good this year?

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