Choosing turnkey for out of state?

6 Replies

I’m looking to buy some single family or multi family homes out of state, I’d like to be in c-b class neighborhoods. I’d prefer b

I’ve heard terrible things about turn key providers and I’ve heard great things. So how would I go about finding out if a turn key company is reputable? I hear Brandon talk about Norada turn key properties on the podcast. I would assume he wouldn’t promote them if they weren’t good.

I understand all the equity is sucked out. That is not my concern right now. I want to build up cash flow.

Eventually I’ll be doing my own long distance brrrr deals.

Hey man, congrats for getting into real estate! Iv been hooked ever since I got my first turnkey property earlier this year.

I worked with REI nation and they are awesome. Unfortunately, inventory is a bit low for them at the moment, which led me to start looking into other turn key properties. I am currently trying to close on a property with Rent to Retirement at the moment and so far they have been great. But the market is a bit hectic at the moment and everything is being picked up pretty quickly. It is hard to find a decent cash flowing property, especially in a B class neighborhood.

In terms of trying to find if a turn key is reputable, Bigger Pockets is the best place to find that. Once you identify several turn key companies, just type them into the search bar and you will find quite a few reviews from other people. Also give them a call, ask them how their process is, see how their response is and how well they communicate with you.

I think once you have 1-2 turn key properties under your belt, and you become more familiar with the process, you will eventually want to stray away from them and start building your own team so you can achieve better cash flow. I think turn key is a great place to get started, but as the rates get higher, your cash flow is going to come down a bit. This is where you want to make the decision if you want to keep staying turn key, or if you want to start building your own team and then doing it yourself for better returns.

Let me know if you have any questions!

@Joseph Vu Thank you for the mention!

@Patrick Flanagan It's all about finding the people in the industry to work with.  This is true of any industry, or business so TK is no different.  TK is an excellent way to get started building a successful rental portfolio in a market that you are not local to, or unfamiliar with, and to learn from a well experienced team all the right practices.  Contrary to popular belief (or BP belief), there are still TK opportunities that have ample cash flow & still have equity.  Our FL new builds have on average $20k to $30k of immediate equity in them as appraisals are constantly coming back well above the purchase price.  Lots of options out there.  It just comes down to working with a team & a market that is most suitable to accomplishing your goals.  I'm happy to answer any questions you have.

I went to Optometry school in Forest Grove, OR just down the road from Beaverton!  ; ).  My wife & I love Oregon!  Very expensive market to try to invest in however...

https://www.biggerpockets.com/users/ZacharyCole/references

https://www.biggerpockets.com/forums/92/topics/518583-feedback-on-renttoretirement-and-zach-lemaster

https://www.biggerpockets.com/forums/92/topics/765347-rent-to-retirement-review

https://www.biggerpockets.com/forums/850/topics/895660-my-first-investment-property-an-out-of-state-deal

https://www.biggerpockets.com/co/RentToRetirement

@Zach Lemaster

Hi, I’m curious if the equity you mention is after the interest only payments are made for the new build loan? Also, what would you say the vacancy rates are for your new builds and are they affected by the current rent moratorium?

@Lynn Berg

You are correct.  Mentioned equity is after factoring in all loan associated costs.  In the SW FL area there is a current housing shortage, and extreme demand for rentals.  It's not uncommon to have multiple tenant applicants before the home is even completed.  Most tenants are staying for multiple years.  That along with the very short leasing timeframe keeps vacancies very low in the 3% to 4% range easily, or possibly lower.  We have not seen any effect in rental performance due to the eviction moratorium.  Tenants still have to fill out a rental application, and qualify the same way to have an approved lease in place.

Free eBook from BiggerPockets!

Ultimate Beginner's Guide Book Cover

Join BiggerPockets and get The Ultimate Beginner's Guide to Real Estate Investing for FREE - read by more than 100,000 people - AND get exclusive real estate investing tips, tricks and techniques delivered straight to your inbox twice weekly!

  • Actionable advice for getting started,
  • Discover the 10 Most Lucrative Real Estate Niches,
  • Learn how to get started with or without money,
  • Explore Real-Life Strategies for Building Wealth,
  • And a LOT more.

We hate spam just as much as you