Multi-family Turnkey company recommendations

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Multi-family Turnkey company recommendations

Pradeep Varghese
NY · Member since 2024 · 4 posts · 8 votes

Looking for recommendations on multi-family turnkey companies that provide a good property management company preferably in-house property management company.  Looking in markets like Memphis, Cleveland, Columbus OH, Detroit, Kansas City or any other markets that have good cash flow and growth.

Thanks.

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Drew SygitBusiness Member
Property Manager · Royal Oak, MI · Member since 2012 · 12k+ posts · 9k+ votes
11mo
Quote from @Stuart Udis:

@Jordan Ray Since you are located in Memphis and also a real estate agent are you self-managing? Leasing your own units? Are you performing any other tasks? As a hypothetical, how much do these properties cash flow if you are hired to manage at 7-8% of collected rent, collect lease up, lease renewal fees and collect fees for managing services such as repairs?  $2500/ monthly cash flow against 6 properties also provides very little context. Is this $600K worth of properties or $6M? 

 @Stuart Udis you forgot to ask him WHEN he bought these properties

As @Nicholas L. states, it can take 1-3 years to ACTUALLY cashflow.

We've got a local agent in our market that pitches their portfolio as evidence of success but leaves out:

1) All bought more than 3 years ago
2) All bought below market price because they cherry-picked motivated sellers (which average buyers rarely get to access)
3) Roller their 3% agent commission into the deal (which average buyers can't do)

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  • Nicholas L.Pro Member
    Flipper/Rehabber · Pittsburgh · Member since 2018 · 6k+ posts · 5k+ votes
    11mo

    @Pradeep Varghese

    there is no cash flow anywhere right now.

    fine to invest for equity but i always like to call that out when new investors try to chase "cash flow."

    0Reply
    • Jordan RayBusiness Member
      Real Estate Agent · Memphis, TN · Member since 2023 · 623 posts · 321 votes
      11mo
      Quote from @Nicholas L.:

      @Pradeep Varghese

      there is no cash flow anywhere right now.

      fine to invest for equity but i always like to call that out when new investors try to chase "cash flow."

      @Nicholas L. you need to invest in Memphis, TN, There is definitely cash flow here brother. I personally have 6 properties and they cashflow $2,500 total so far after expenses. Stop being a negative nancy and and look into Memphis.

      [email protected]662-642-1458
      Jordan Ray - eXp Realty5110 Reviews
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  • Stuart UdisPro Member
    Attorney · Philadelphia · Member since 2018 · 2k+ posts · 3k+ votes
    11mo

    To piggyback off of what Nicholas shared, cash flow is difficult with interest rate and operating costs constraints at this time. The markets you listed also happen to be markets that are going to be operationally inefficient making it even more difficult to layer on 3rd party management/being entirely reliant on 3rd parity vendors.  If you are underwriting these as cash flowing, you found yourself a unicorn, but more likely scenario is your assumptions/projections are off. Investing for growth is perfectly fine and truthfully should be the objective. Focus on properties with strong fundamentals that project for appreciation. Cash flow is important to the extent you can cover your carrying costs and sleep well at night while ensuring there are ample reserves to address issues as they arise. 

    I know a lot of turnkey providers are getting creative with their deal structuring such as free maintenance or management in year 1 or are signing up tenants with marked up rent figures and hiding concessions that were offered. Make sure you do you diligence before purchasing and strip away any concessions when analyzing the property.

    [email protected]
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  • Nicholas L.Pro Member
    Flipper/Rehabber · Pittsburgh · Member since 2018 · 6k+ posts · 5k+ votes
    11mo

    @Jordan Ray

    hello!  to be clear, i definitely think there is cash flow on a long-term basis.  i am doing well in Pittsburgh. i just think that by a new investor's definition, there isn't for several years.  they are typically blown away by:

    -closing costs

    -rent ready and lease-up costs

    -basic repairs, and always, always big-ticket items

    paying those off and stabilizing a property can take several years - making $87 in month 3 over the PITI is not true cash flow.

    so i think it's important to help them understand that.

    hope this helps explain my perspective.

    1Reply
  • Stuart UdisPro Member
    Attorney · Philadelphia · Member since 2018 · 2k+ posts · 3k+ votes
    11mo

    @Jordan Ray Since you are located in Memphis and also a real estate agent are you self-managing? Leasing your own units? Are you performing any other tasks? As a hypothetical, how much do these properties cash flow if you are hired to manage at 7-8% of collected rent, collect lease up, lease renewal fees and collect fees for managing services such as repairs?  $2500/ monthly cash flow against 6 properties also provides very little context. Is this $600K worth of properties or $6M? 

    [email protected]
    1Reply
    • Drew SygitBusiness Member
      Property Manager · Royal Oak, MI · Member since 2012 · 12k+ posts · 9k+ votes
      11mo
      Quote from @Stuart Udis:

      @Jordan Ray Since you are located in Memphis and also a real estate agent are you self-managing? Leasing your own units? Are you performing any other tasks? As a hypothetical, how much do these properties cash flow if you are hired to manage at 7-8% of collected rent, collect lease up, lease renewal fees and collect fees for managing services such as repairs?  $2500/ monthly cash flow against 6 properties also provides very little context. Is this $600K worth of properties or $6M? 

       @Stuart Udis you forgot to ask him WHEN he bought these properties

      As @Nicholas L. states, it can take 1-3 years to ACTUALLY cashflow.

      We've got a local agent in our market that pitches their portfolio as evidence of success but leaves out:

      1) All bought more than 3 years ago
      2) All bought below market price because they cherry-picked motivated sellers (which average buyers rarely get to access)
      3) Roller their 3% agent commission into the deal (which average buyers can't do)

      [email protected]248-209-6824
      Logical Property Management4.9451 Reviews
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      3Reply
    • Jordan RayBusiness Member
      Real Estate Agent · Memphis, TN · Member since 2023 · 623 posts · 321 votes
      11mo
      Quote from @Stuart Udis:

      @Jordan Ray Since you are located in Memphis and also a real estate agent are you self-managing? Leasing your own units? Are you performing any other tasks? As a hypothetical, how much do these properties cash flow if you are hired to manage at 7-8% of collected rent, collect lease up, lease renewal fees and collect fees for managing services such as repairs?  $2500/ monthly cash flow against 6 properties also provides very little context. Is this $600K worth of properties or $6M? 


      It is 1.2M worth of properties and yes I do self manage. I focus on getting Section 8 tenants and usually focus heavily on a quality rehab to minimize the recurring maintenance & capex. Regardless wether I self manage or not.. my clients are having the same success. I am happy to show the same track record with the clients who are hiring my local property manager contact in Memphis.

      [email protected]662-642-1458
      Jordan Ray - eXp Realty5110 Reviews
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      0Reply
    • Jordan RayBusiness Member
      Real Estate Agent · Memphis, TN · Member since 2023 · 623 posts · 321 votes
      11mo
      Quote from @Drew Sygit:
      Quote from @Stuart Udis:

      @Jordan Ray Since you are located in Memphis and also a real estate agent are you self-managing? Leasing your own units? Are you performing any other tasks? As a hypothetical, how much do these properties cash flow if you are hired to manage at 7-8% of collected rent, collect lease up, lease renewal fees and collect fees for managing services such as repairs?  $2500/ monthly cash flow against 6 properties also provides very little context. Is this $600K worth of properties or $6M? 

       @Stuart Udis you forgot to ask him WHEN he bought these properties

      As @Nicholas L. states, it can take 1-3 years to ACTUALLY cashflow.

      We've got a local agent in our market that pitches their portfolio as evidence of success but leaves out:

      1) All bought more than 3 years ago
      2) All bought below market price because they cherry-picked motivated sellers (which average buyers rarely get to access)
      3) Roller their 3% agent commission into the deal (which average buyers can't do)


      Hey Drew, I have bought the past 3 properties this year in 2025. I am going to personally buy 5 properties next year all using the same BRRRR method that works great in Memphis. Also the same structure for acquisition and deal setup that I have taught over 100 clients personally that are out-of-state already in the past 2 years. Its very hard for you to understand from Michigan but if you want to explore buying yourself in Memphis, I can show you the same setup. Let's talk.

      [email protected]662-642-1458
      Jordan Ray - eXp Realty5110 Reviews
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      0Reply
  • Drew SygitBusiness Member
    Property Manager · Royal Oak, MI · Member since 2012 · 12k+ posts · 9k+ votes
    11mo

    @Jordan Ray what's your take on this article about Memphis being the most dangerous city in America?

    https://realestate.usnews.com/places/rankings/most-dangerous-places

    [email protected]248-209-6824
    Logical Property Management4.9451 Reviews
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  • Drew SygitBusiness Member
    Property Manager · Royal Oak, MI · Member since 2012 · 12k+ posts · 9k+ votes
    11mo

    @Pradeep Varghese Please pay attention to my other posts!

    Currently, the only way to cashflow is to buy Class C properties.

    Sounds simple, but most newer investors FAIL to do proper research to learn/understand that the PAPER returns that most "professionals" are trying to sell them are MISREPRESENTED!

    So, your expectations will never be met, but hey, those professoinals still get a commission.

    You can buy for cashflow in Detroit, but you have to use the correct metrics, work with the right professionals and still question everything!

    Here's some copy and paste info you should study and understand BEFORE buying:

    ___________________________________________________________________

    How much do you know about Property Classes?

    Recommend you spend some time learning about them, so you don’t mistakenly buy a property that will NEVER meet your expectations!

    Why is Property Class so important for investors to understand and apply in their investing strategies?

    Because the Property Class dictates the Class of the tenant pool that the property will attract.

    The Tenant Class greatly impacts rental income stability and property maintenance/damage by tenants.

    Both Property Class and Tenant Class will affect what type of contractors, handymen and property management companies you should target and be willing to deal with a property.

    The Property Class will also impact the maintenance & renovations you do to, “Maintain to the Neighborhood”.

    Why is that important?

    Well, if you buy & renovate a property in Class D area to Class A standards, what Tenant Class will actually rent it?

    Or, if you put several Class D tenants in a Class A four-plex, what do you think will happen to the property?

    So, if you fail to apply the correct assumptions to a property, your expectations won’t be met, and it may even be a financial disaster.

    We use the following to rank Property Classes, in order of importance:

    • Property Tenant Pool: closely linked to location, but not always.
    • Property Location: closely linked to tenant pool, but not always.
    • Property Condition & Amenities: it’s important to, “Maintain to the Neighborhood.”

    Key metrics for each Property Class:

    Class A Properties:
    Tenant Pool: Majority of FICO scores 680+, no convictions/evictions in last 7 years.
    Tenant Default: 0-5% probability of eviction or early lease termination.
    Section 8: Class A rents are too high and won’t be approved.
    Vacancies: 5-10%, depending on market conditions.
    Cashflow vs Appreciation: Typically, 3-5 years for positive cashflow, but you get highest relative rent & value appreciation.

    Class B Properties:
    Tenant Pool: Majority of FICO scores 620-680, some blemishes, no convictions/evictions in last 5 years.
    Tenant Default    : 5-10% probability of eviction or early lease termination.
    Vacancies    : 10-15%, depending on market conditions.
    Cashflow vs Appreciation: Typically, 1-3 years for positive cashflow, balanced amounts of relative rent & value appreciation.
    Section 8: Class B rents are usually too high for the Section 8 program.

    Class C Properties:
    Tenant Pool: Majority of FICO scores 560-620, many blemishes, but should have no convictions/evictions in last 3 years. Verifying recent 2-years of rental history very important! Same for 2-years of job/income stability.
    Tenant Default: 10-20% probability of eviction or early lease termination.
    Section 8: Class C rents usually meet program requirements, proper screening still recommended.
    Vacancies: 10-20%, depending on market conditions and tenant screening.
    Cashflow vs Appreciation: Should cashflow immediately, at the lower end of relative rent & value appreciation.

    Class D Properties:
    Tenant Pool: Majority of FICO scores under 560, little to no good tradelines, lots of collections & chargeoffs, but should have no convictions/evictions in last 12 months. Verifying last 2-years of rental history and income/employment extremely important to find the “best of the worst”.
    Tenant Default: 20-30% probability of eviction or early lease termination.
    Section 8: Class D rents meet program requirements, often challenges to pass Section 8 inspection.
    Vacancies: 20%+, depending on market conditions and tenant screening.
    Cashflow vs Appreciation: Typically, all cashflow with little, maybe even negative, relative rent & value appreciation.

    Where did we get our FICO credit score information from?

    Check out this chart:

    FICO Score

    Pct of Population

    Default Probability

    800 or more

    13.00%

    1.00%

    750-799

    27.00%

    1.00%

    700-749

    18.00%

    4.40%

    650-699

    15.00%

    8.90%

    600-649

    12.00%

    15.80%

    550-599

    8.00%

    22.50%

    500-549

    5.00%

    28.40%

    Less than 499

    2.00%

    41.00%

    Source: Fair Isaac Company

    Make sure you understand the Class of properties you are looking at and the corresponding results to expect.

    Metro Detroit has 132 cities, the City of Detroit 183 Neighborhoods, which we’re analyzing and classifying. Check out the map on our website where we’ve made this all easy to follow.

    We can also share numerous examples of properties & portfolios we’ve assisted investors with!

    DM us if you’d like to discuss this logical approach in greater detail!

    Horror Stories:

    https://www.biggerpockets.com/forums/48/topics/1137397-baltimore-a-path-to-never-ending-pain

    https://www.biggerpockets.com/forums/432/topics/1231840-sell-at-a-loss-or-rent-at-a-loss

    https://www.biggerpockets.com/forums/311/topics/840134-memphis-turnkey-tenant-turnover-costs

    https://www.biggerpockets.com/forums/963/topics/1195280-experience-of-oos-investing-in-cleveland-after-15-years

    [email protected]248-209-6824
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  • Kerlous TadresBusiness Member
    Realtor · Columbus, OH · Member since 2023 · 1k+ posts · 1k+ votes
    11mo

    Hey @Pradeep Varghese, if you’re leaning toward Ohio, I’d be happy to share some trusted property managers and turnkey-style rehab contacts I work with in Columbus and Cleveland who cater specifically to out-of-state investors.

    [email protected]614-490-1163
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  • Jimmy LieuBusiness Member
    Real Estate Agent · Columbus, OH · Member since 2019 · 3k+ posts · 2k+ votes
    11mo
    Quote from @Pradeep Varghese:

    Looking for recommendations on multi-family turnkey companies that provide a good property management company preferably in-house property management company.  Looking in markets like Memphis, Cleveland, Columbus OH, Detroit, Kansas City or any other markets that have good cash flow and growth.

    Thanks.

    Hey Pradeep, good question. There aren’t a ton of perfect turnkey multifamily companies in every market that also have solid in-house property management, but there are some worth keeping an eye on. In Columbus, a lot of investors like working with local turnkey operators who control both the renovation and management side because it keeps things more consistent and avoids dealing with middlemen. What’s nice about Columbus specifically is that it’s a strong cash flow and growth market, with affordable entry points in the $120K–180K range and steady rental demand driven by population and job growth from companies like Intel, Amazon, Google, and Honda. Memphis, Detroit, and Kansas City also have active turnkey scenes, but the key is really vetting whoever you work with—ask for past performance, talk to other investors they’ve worked with, and make sure their property management is truly in-house and not farmed out. A lot of people on BP have had success in Columbus for exactly this reason, since everything can be handled under one roof. Happy to connect and answer any questions you have!

    [email protected]614-300-7535
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  • Stuart UdisPro Member
    Attorney · Philadelphia · Member since 2018 · 2k+ posts · 3k+ votes
    11mo

    @Jordan Ray I am still struggling to understand how out of state investors can have the same results. You are cash flowing $2,500/m on a newly renovated $1.2M portfolio. Can the out of state investor renovate at your same costs with zero on-site oversight?  Unlikely. Once the renovation is completed they must pay the local agent a lease up fee and ongoing management fees. With those ongoing opex included, they aren't remotely close to $2,500/m in positive cash flow. 

    [email protected]
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    • Jordan RayBusiness Member
      Real Estate Agent · Memphis, TN · Member since 2023 · 623 posts · 321 votes
      11mo
      Quote from @Stuart Udis:

      @Jordan Ray I am still struggling to understand how out of state investors can have the same results. You are cash flowing $2,500/m on a newly renovated $1.2M portfolio. Can the out of state investor renovate at your same costs with zero on-site oversight?  Unlikely. Once the renovation is completed they must pay the local agent a lease up fee and ongoing management fees. With those ongoing opex included, they aren't remotely close to $2,500/m in positive cash flow. 

      @Stuart Udis, if you would like to reach out and schedule a call then I can show you how cashflow is possible in Memphis. Btw, I never said that my clients were making $2,500/month from 6 properties. You assumed that, I said that I was. Point being, my clients are cashflow positive and are doing very well and they keep on buying. If you want to get serious about Memphis instead of trying to call me out, then you can message me privately and I will show you exactly what I am doing here to achieve this. Negativity and disbelief does not grow your net worth... Being open minded and taking action does. Looking forward to seeing you reach out to schedule a call. Talk soon!

      [email protected]662-642-1458
      Jordan Ray - eXp Realty5110 Reviews
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  • Stuart UdisPro Member
    Attorney · Philadelphia · Member since 2018 · 2k+ posts · 3k+ votes
    11mo
    [email protected]
    1Reply
  • Nicholas L.Pro Member
    Flipper/Rehabber · Pittsburgh · Member since 2018 · 6k+ posts · 5k+ votes
    11mo

    @Jordan Ray

    i really don't think we're being 'negative' - i at least am genuinely interested and think your success is great.  i'm just cautious on behalf of brand new out of state investors.  you are neither brand new nor out of state.  just because Lebron is successful in the NBA doesn't mean everyone can be.

    1Reply
    • Jordan RayBusiness Member
      Real Estate Agent · Memphis, TN · Member since 2023 · 623 posts · 321 votes
      11mo
      Quote from @Nicholas L.:

      @Jordan Ray

      i really don't think we're being 'negative' - i at least am genuinely interested and think your success is great.  i'm just cautious on behalf of brand new out of state investors.  you are neither brand new nor out of state.  just because Lebron is successful in the NBA doesn't mean everyone can be.

      I do agree with you that not everyone can be successful, however it does not take much to implement to get started and for a beginner investor to get excited about what they are doing enough to take it to a new level. Real estate is 1 of the only businesses where you can copy & paste the same business model everyone else is using and it will still work. 

      [email protected]662-642-1458
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  • Remington LymanBusiness Member
    Real Estate Agent · Columbus, OH · Member since 2017 · 6k+ posts · 7k+ votes
    11mo
    Quote from @Pradeep Varghese:

    Looking for recommendations on multi-family turnkey companies that provide a good property management company preferably in-house property management company.  Looking in markets like Memphis, Cleveland, Columbus OH, Detroit, Kansas City or any other markets that have good cash flow and growth.

    Thanks.


     There are not many turnkey companies in Columbus, Ohio but I know a few in Cleveland

    [email protected]614-541-8475Podcast Guest on Show My Job Laid Me Off, So I Replaced My Salary with Rentals
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  • Sam McCormackBusiness Member
    Real Estate Agent · Cincinnati, OH/NKY · Member since 2021 · 1k+ posts · 833 votes
    11mo
    Quote from @Pradeep Varghese:

    Looking for recommendations on multi-family turnkey companies that provide a good property management company preferably in-house property management company.  Looking in markets like Memphis, Cleveland, Columbus OH, Detroit, Kansas City or any other markets that have good cash flow and growth.

    Thanks.


     Cash flow is hard to get. If a property gets listed and cash flows, DO NOT HESITATE. Assuming it's in a decent area, numbers are accurate, etc. then get on it ASAP. I prefer to buy in an area that I know is more stable, so I know I will lose money every month for a year or 2 until rents go up. You got to pick and choose what's most important to you. If you want good cash flow, expect headaches

    [email protected]859-443-4952
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  • Joseph TadresPro Member
    Real Estate Agent · Columbus, OH · Member since 2025 · 184 posts · 179 votes
    11mo

    Hey Pradeep, I'd love to connect you with some property management companies in Columbus and Cleveland. 

    2Reply
  • Dean HarrisBusiness Member
    Real Estate Agent · Memphis, TN · Member since 2015 · 1k+ posts · 1k+ votes
    11mo

    I have been able to find cash flow in deals I source in Memphis, TN. I have personally used the BRRRR strategy over 50 times here in Memphis and it is my personal favorite for all the known reasons. My clients have used it hundreds of times over the years

    The key is your vendor partners, referral base/sphere of influence and your boots on the ground. Trust and many years of expierence is the first thing I would vet in your deal source and your essential partners on the ground no matter what city you invest in. 

    I spoke about this on a recent podcast episode of mine titled "Build Your Team". You can find that podcast by searching for The Investor's Guide to Memphis Real Estate wherever you listen to podcasts and you can watch the show on Youtube. 

    Im alwasy happy to lend my expierence to the BiggerPockets community! Feel free to PM me and I will be happy to get on a Call/Zoom with you!

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