Thoughts on using Home Union or Roofstock for Turnkey Investing

Thoughts on using Home Union or Roofstock for Turnkey Investing

Member since 2021 · 12 posts · 4 votes

Hello BiggerPocketers :-), I am very new to the world of real estate investing (Just bought my 1st home as primary residence and that's what opened up my eyes to the world of RE investing). I am excited! I am based in the Bay Area and am looking to buy rental properties (open to other states where, it seems, the cashflow is much better than CA). I read about hot rental markets such as Atlanta, Dallas, NC, TX, FL, Birmingham, Kansas City, Sacramento/Roseville, East Bay etc? and then ended up on this article on 'Turnkey Investing' and how some companies such as roofstock or homeunion are helping Out of State investors find properties, refab, rent them and help with property management etc.

Any thoughts on using these companies? Are they legit and worth it? I don't mind shelling a small % to them, if in the grand scheme of things, I get a good property in a nice location whose value appreciates, have a decent cashflow on the rent and the property managers are good and I get good tenants. I am leaning towards exploring this option. So, any advice/pitfalls to be aware of would be appreciated. If not using homeunion or roofstock, are there any other local companies you'd recommend in these markets OR is DIY from finding property to PMing yourself etc. my only option?

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Rental Property Investor · Orange County, CA · Member since 2016 · 512 posts · 374 votes
5y

@Simran Singh

Find the city to invest in first and then look for a provider. You can easily find an investor focused realtor and property management companies will be referred as well. Don't think that turnkey is the only route available..And your choice of neighborhood is where the focus should be.. There are certain areas in very cash flow city where the turnkey providers are super active for a reason.. Market comps don't support the turnkey prices. If your property does not perform, you will have a major loss in exiting the property. Focus on B neighborhoods initially and when expanding, then you can choose C class neighborhoods as well

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  • Rental Property Investor · Centreville, VA · Member since 2019 · 1k+ posts · 799 votes
    5y

    Hi @Simran Singh I worked with Roofstock last year and purchased a SFH in Memphis, TN. I have shared my experience below

    https://www.biggerpockets.com/...


    Let me know if you want to connect and chat more about the purchase process.

  • Member since 2021 · 12 posts · 4 votes
    5y

    @Aj Parikh Thanks for sharing this. I read through your experience - congrats on the positive experience and cash flow. My only concern was that this seemed like a 'C' property - which is great to generate good CoC and cash flow. However, I am also looking for long term value appreciation, in addition to decent cashflow and I wonder if the 'turnkey investing' model has any A or B class properties to realize that objective. Any thoughts?

  • Rental Property Investor · Centreville, VA · Member since 2019 · 1k+ posts · 799 votes
    5y

    @Simran Singh You are right. This is definitely a C class neighborhood. I got into this property mainly because of the cash flow.

    I would suggest look for turnkey providers in Texas where you can find good appreciation and cash flow. I know Texas Turnkey investments has a good operation there

  • Rental Property Investor · Orange County, CA · Member since 2016 · 512 posts · 374 votes
    5y

    @Simran Singh

    Find the city to invest in first and then look for a provider. You can easily find an investor focused realtor and property management companies will be referred as well. Don't think that turnkey is the only route available..And your choice of neighborhood is where the focus should be.. There are certain areas in very cash flow city where the turnkey providers are super active for a reason.. Market comps don't support the turnkey prices. If your property does not perform, you will have a major loss in exiting the property. Focus on B neighborhoods initially and when expanding, then you can choose C class neighborhoods as well

  • New to Real Estate · San Diego · Member since 2021 · 14 posts · 6 votes
    5y

    Ooh, I’m in the same boat as you! Located in Southern California. I’ve also come across a few turn key companies as well and am looking forward to hearing some responses from the pro members. 

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