Good day, Biggerpockets! I have read and heard from many of you regarding your out of state Turnkey investments. It seems we hear more about the bad experiences than the good so I wanted to share my story.
For the last several years, my home state of California has been an impossible market to invest in, unless you got in a long time ago or are banking on some appreciation. About 3 years ago I started researching how I could get the best return on investment. I am in the midst of my career but I have so many other aspirations for this life so I NEED passive income. I stumbled across the term "Turnkey". Like most, I was reluctant to jump into something like this, so I continued to do my research. Long story short, I visited two midwest markets; Memphis and Kansas City. I met with a few different Turnkey providers and decided Kansas City was the best market for me. While they are both similar markets in regards to population, job growth and stabilized economies, I found a better return on investment in Kansas City. After seeing different properties I contracted two properties in South Kansas City. The company that I went with was very knowledgable and helpful through out the closing. I worked with their preferred lender and title company and it was all a smooth process.
Fast forward to today, I have been quite pleased with my experience. I have had long term renters and no turn over cost yet. Rent has hit my bank account like clock work. A little bit of maintenance is to be expected which is why I set aside a monthly reserve for that but I have not encountered any significant costs buying Turnkey. I prefer to be hands off with my investments and have one monthly phone call with my property manager.
I plan on investing in more property in the near future, which is why I am back on the internet and stumbling across Biggerpockets. I have stocks but have always felt Real Estate is a better investment. My cash return on investment has exceeding any of my stocks and I have also come to find out my houses have gained $15,000 in equity over the last few years. Not expected but surely gratifying.
I wish all of you the best of luck. If anyone would like more insight or has any questions I am happy to share. I will try to continue updating my story, perhaps in more detail.
Congrats! Keep crushing it.
@Chad Stark Glad to hear it worked out for you. As in any business, there are good providers and bad ones. I'm glad you found a good one.
I am also looking into KC but it is totally new to me. Would you mind letting me know which turnkey provider are you working with? I would appreciate if you could help.
Good luck with your business.
@Chad Stark so glad things are going well! I'd love to hear more about your purchase price and returns. Please share!