How to get started with Turnkey providers?

[Brandon S.]

Been exposed to the idea of using a turnkey provider for out-state/out-of-market investing vs. venturing out on my own*.

Just wondering the following:

• Pros (e.g., less headaches)
• Cons (e.g., eats into your returns, likely to learn less)
• Typical services they provide (e.g., tenant search, property management)
• Typical costs (e.g., flat fee, percentage of rents)
• Things to look for when looking for a reputable firm (e.g., performance of their portfolio, customer testimonials, first impressions, integrity, etc.)

Lots more to think about but just thought I'd jot these guys down! Thanks.

*I am a newbie to local investing, let alone out of state.

[Jon Holdman]

Use great caution with turnkey. You absolutely must do your on eavluation, including seeing the property, neighborhood and city with your own eyes. Many, though not all, of these companies target niave long distance investors who evaluate the properties based on where they live rather than where the properties are located. All too often their properties are overpriced, poorly rehabbed and don't bring in nearly the rent claimed. Like most sellers, they omit many of the real expenses to make the numbers look good. Be careful.