Where to invest for turnkeys?

Question

I am starting to learn about turnkey and am worndering what are the best markets?

Josiah Barkman · Answer

@Jimmy Chao Ohio has some great cashflow markets.  I'm in NE Ohio in Akron/Canton and Cleveland markets.  Depending on the areas you want to invest in you can easily pick up turnkey properties from 40k-90k++

Account Closed · Answer

I second Columbus, OH. A fantastic market that continues to grow in jobs and population. Major companies are flooding our market (Google, Facebook) and large companies like Chase and Huntington have major presences as well. This doesn't even include the headquarters that we have here (Nationwide, Cardinal Health, The Ohio State University, L Brands, Big Lots, CoverMyMeds, and more!). There are definitely turnkey opportunities here with potential to cash flow or buy for appreciation. Best of luck!

Remington Lyman · Answer

@Jimmy Chao I would look at the Columbus, Ohio market. We have plenty of properties on the market that could be great turnkey deals.

James Wise · Answer

Welcome to the site Jimmy. Tons of turnkey markets out there. Many of these markets are very well represented by sellers & turnkey operators here on BiggerPockets. In no particular order I have listed some of the most popular markets for out of state investors

• Cleveland, Ohio
• Dayton, Ohio
• Toledo, Ohio
• Youngstown, Ohio
• Cincinnati, Ohio
• Memphis, Tennessee
• Birmingham, Alabama
• Kansas City, Missouri
• Saint Louis, Missouri
• Indianapolis, Indiana
• Detroit, Michigan
• Erie, Pennsylvania
• Louisville, Kentucky
• Milwaukee, Wisconsin
• Jackson, Mississippi

Each of these markets is popular with turnkey investors because of the low barrier to entry, high rental demand & high rent to price ratio. I recommend setting up keyword alerts for each area as they are discussed in the forums daily with advertisements posted in the BiggerPockets marketplace hourly.

One thing to note when looking at the individual markets, you can make or loose money in any market. Don't think that one particular out of state market will shoot you to success or abject failure. It's not really that complicated to buy out of state. It only becomes complicated when investors try to over complicate or over think everything. Whenever you are buying a property out of state you should do a few things to ensure it's as smooth as possible.

• Don't buy in the roughest neighborhood in the urban core. Pick a solid B-Class suburban area. Perhaps a nice 1950's built bungalow.
• Always hire a 3rd party property inspector to give you an unbiased feel for the home. The reports are 40-90 pages long and go through the entire house in great detail.
• Get an appraisal. If your using financing the bank requires this. This is good. The bank isn't going to let you blow their money. They have more skin in the game then you do.
• Make sure you get clear title. If using a lender this is a non issue. They will make you do this. It's those maniacs that buy homes cash via quit claim deed off of craigslist that really get screwed.
• Make sure your property manager is a licensed real estate brokerage.
• Understand you can not eliminate all risk, only mitigate it. If you are risk adverse real estate, (especially out of state) is not for you.

Tyler Jahnke · Answer

Hey @Jimmy Chao - If you're looking into turnkey rental investments, you're probably in search of cash flow. Cash flow can be found throughout the Midwest, The South, heck....I have friends that just picked up cash flowing property in the SF Bay Area.

Here's my real point though: maybe even more important than the market, is the OPERATOR. Instead of spending hours, days, weeks, and months trying to find the "perfect market" (which doesn't exist), use that time to vet, meet, and call operators. Ultimately, your dollars and investment are in their hands. They better have experience, knowledge, and integrity.

I personally started investing by working with a turnkey company (which turned out be the best learning experience I could have asked for....through MAJOR challenges), so now I things on my own and I partner, but I have a friend who has had a great experience with @Chris Clothier and his company Memphis Invest.

Best of luck!

-Tyler

Account Closed · Answer

Depends on what kind of investor you are. Here is a spreadsheet of a Phoenix Turnkey for an idea.

Average Turnkey Cash Flow Per Door In Phoenix
Metro Area No Bank Financing Needed

https://www.biggerpockets.com/forums/600/topics/584916-average-cash-flow-per-door-in-phoenix-metro-area

3 Ways to Wealth in Real Estate - CashFlow Flip Hold – Here’s How

https://www.biggerpockets.com/forums/311/topics/780022-3-ways-to-wealth-in-real-estate-cashflow-flip-hold-here-s-how

Kendall Staggs · Answer

I agree with Tom about the Dayton area market, especially right along the south outer belt of Dayton. I own and operate a property management business in the Cincinnati/ Dayton area. We see great returns for myself as an investor and our clients.

Get in touch with myself if you would like more information about the area.

Caleb Heimsoth · Answer

@Jimmy Chao I would just not buy turnkey as it’s expensive and the “value” you get isn’t really worth what you pay for it.

Marc Brenner · Answer

Hey @Jimmy Chao, good question. You're correct, prices are up in Atlanta but I can assure you there are still lots of great deals to be found. In terms of growth - Atlanta is the 4th fastest growing city by population, 3rd highest job growth, 3rd in rent growth (still below average) and 3rd for cities with the most fortune 500 companies (16). So yes, Atlanta is a great place to invest! Reach out to me if you have any questions about the market and best of luck to you sir.

Caleb Brown · Answer

Kansas City has been growing but turn keys are a great option here. Just shoot me a PM if you need to chat about it!

Where to invest for turnkeys?

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