Turnkey rental company suggestions

Olympia, WA · Member since 2019 · 8 posts · 0 votes

I know there is a very divided section on BP that either love or hate turnkey rental companies, however I would like to know what turnkey rental companies have a solid record of always performing to par and causing few to no headaches for people. Who have you worked with and had a good experience with?

Also, can anyone confirm/deny if Roofstock, Norada, or Homeunion/Investimate are good turnkey companies? Thanks in advance.

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Caleb Heimsoth

Rental Property Investor · Durham, NC · Member since 2016 · 7k+ posts · 7k+ votes

@Trevor Jacobs none of those companies are turnkey providers, they’re turnkey promoters. Good turnkey companies: memphis invest, turnkey investment properties, spartan invest and many others.

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Andre Pinheiro
Rental Property Investor · CA (orange county) · Member since 2019 · 67 posts · 20 votes
7y
@Christopher Toth satisfied with the returns?
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Mike D'ArrigoPro Member
Turn key provider · San Jose, CA · Member since 2010 · 4k+ posts · 3k+ votes
7y
@Trevor Jacobs First thing you should do is define what you consider a turn key company. Everyone has a different definition. My definition is properties that have been recently and fully renovated, have tenants in place and are under professional property management. Anything less than that is just an existing rental that someone else wants to sell. As @Jay Hinrichs and others on here have already said, there is no such thing as perfect, or no headaches. That is just the nature of rental properties. A good property manager will mitigate and buffer most of the potential problems however. Here's what you should expect from a turn key company. After this,
1. A quality asset in a stable rental neighborhood that matches your expectations. You should not buy what you think is a C or B class property and find out it is actually a D class
2. A well rehabbed property. This doesn't mean just cosmetically, although cosmetics is important to attract quality tenants. There should not be any significant deferred maintenance and mechanical should not be at the end of their useful life. This is one of the biggest arguments against buying cheap, low end properties. The economics don't allow for a good rehab. A rehabber/flipper can only spend so much rehabbing a $40K-$50K house and still make any money.
3. Excellent property management. After buying the right class of property, property management is the next most important thing. Other than the day to day fix it issues you will have, tenants are the biggest source of headaches and expenses. Carefully vet the PM and understand their tenant screening process but know that no matter how good of a job a PM does in screening, bad apples can slip under the radar.
Beyond this, there is not much else you can do. The goal is to mitigate risk, not eliminate it.
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Mindy JensenPro Member
BiggerPockets Money Podcast Host · Longmont, CO · Member since 2014 · 7k+ posts · 10k+ votes
7y
Moderator Note: You are welcome to recommend companies that you have experience with in the forums, however it is against our rules for you to recommend your own company, or the company you work for. All removed posts have been self promotional, which is against our rules.
[email protected]Podcast Guest on Show #261
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Amit P.
Las Vegas, NV · Member since 2018 · 49 posts · 40 votes
7y
@Axel Meierhoefer I would love to find this tool that shows all the TK providers.
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Joe SplitrockPro Member
Moderator
Rental Property Investor · Sioux Falls, SD · Member since 2015 · 9k+ posts · 18k+ votes
7y
First rule of turnkey is that there is nothing such as turnkey investing. Meaning you will need to invest your own time and money to validate. You need to buy a ticket and fly out. Put your own feet on the ground. Look at the property (smell the property). Run your own comarables for value, determine market rents, hire your own inspector and appraiser.
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Christopher Toth
Rental Property Investor · Denville, NJ · Member since 2017 · 107 posts · 54 votes
7y
@Andre Pinheiro Being that they are TK properties...you will always be leaving money on the table for the convenience of "living room Investing".
But the two properties i have with them are leveraged and make $240 &$250 in cashflow after expenses. ROI on downpayment and closing costs is 14%
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Andre Pinheiro
Rental Property Investor · CA (orange county) · Member since 2019 · 67 posts · 20 votes
7y
Originally posted by @Christopher Toth:

@Andre Pinheiro Being that they are TK properties...you will always be leaving money on the table for the convenience of "living room Investing".
But the two properties i have with them are leveraged and make $240 &$250 in cashflow after expenses. ROI on downpayment and closing costs is 14%
Thats Great ! Thanks for the info, if you don't mind could you tell me ( DM ) which TK do you use?
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Jeff Mars
New to Real Estate · Vacaville, CA · Member since 2015 · 16 posts · 4 votes
7y
Originally posted by @Christopher Toth:
@Andre Pinheiro Being that they are TK properties...you will always be leaving money on the table for the convenience of "living room Investing".
But the two properties i have with them are leveraged and make $240 &$250 in cashflow after expenses. ROI on downpayment and closing costs is 14%
Hi Christopher, how are your vacancy and turnover (lease renewal) rates so far? Just checked out MidSouth tonight and looks interesting. Thanks!
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Christopher Toth
Rental Property Investor · Denville, NJ · Member since 2017 · 107 posts · 54 votes
7y
@Jeff Mars I still have the original tenants. We renewed one lease last November.
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Tushar Shah
Chicago, IL · Member since 2017 · 96 posts · 12 votes
6y
@Christopher Toth Hey Chris, checking to see how your experience is going with Mid South. Any updates? How did you g ed t comfortable with the neighborhood/quality of tenant etc.
Also the 250 you mentioned, is that net of just operating expenses or you factor in vacancy, capex and maintenance?
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Christopher Toth
Rental Property Investor · Denville, NJ · Member since 2017 · 107 posts · 54 votes
6y
@Tushar Shah Things with Mid South are going good. I did just have a turnover and they where very quick in getting the property rent ready, and occupied. I only have really good things to say about Mid South. Excellent customer service.
Also my cash flow numbers only included debt service, taxes, insurance, and property management. No vacancy, and maintenance. I would definitely add in an 8% vacancy rate though.
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Alex CraigBusiness Member
Real Estate Professional · Memphis, TN · Member since 2009 · 1k+ posts · 1k+ votes
6y
@Trevor Jacobs I have not ready through the response, but none of the companies you have mentioned are Turnkey companies. All of them are Marketing companies pitching deals they do not own....huge difference. Those companies have absolutely no financial interest in the properties they sell.
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