Turnkey investing. Has anyone purchased properties from Memphis Investment Properties/Reedy & Company Realtors? can you share pros/cons. Thank you, Sam
Investor · Miami, FL · Member since 2013 · 377 posts · 258 votes
5y
The turnkey Market is pretty saturated now in Memphis but I have purchased multiple properties with @Mark Hart at MIP/ Reedy & Co. The deals available are not home runs but the company is solid. I live in Miami and flew up to Memphis last year to meet the team and check out the facilities. I was very impressed. I have only good things to say about them
I have done my due diligence on Turnkey investing. The company that came up on top was Memphis Investment Properties (MIP)/Reedy & Co. We all have different goals in investing, I was not looking for the home runs, I want a more secure tangible investment with a steady return. I have invested in the stock for many years and I have shifted half of my portfolio to the rental property side, diversity. Yesterday I did purchase my first rental property with MIP. On the phone with Mark Hart he was there to answer all my questions and walk me through the process. MIP is a professional group of caring partners that want their investors to do well. Looking forward to a long term partnership with MIP.
Investor · Miami, FL · Member since 2019 · 41 posts · 33 votes
5y
Nice job! I met with MIP in July too. I met with 3 providers in person and all of them I would have worked with. I only choose one over the other based on the individual rental numbers they were providing per property. I am still watching MIP for when they have apartment syndications. I have closed on some and entering the property management side of things now.
Rental Property Investor · Syracuse, UT · Member since 2015 · 19 posts · 13 votes
5y
Three of of my first 4 tenants with Memphis Investment Properties/Reedy have left early/broken leases; one after 9 months and the other 2 after 14 months, breaking the new leases they had just re-signed.
The cost for tenant turnover just keeps going up. My houses were all fully rehabbed when I bought them. All are solid B neighborhoods. - The "required" scope for the first house, May 2020, 3bed/2bath : $2438. - The scope for the second house, just in Dec. 2020, 3 bed/2bath: $3010 - The scope for the third house (tenants only lived there 14 months and it's only 981 s/r), 3 bed/1bath: Grand prize of $7368 Apparently a pipe burst, probably a month ago during the big storms. Just heard about it today even though I've asked repeatedly for an update since the tenant vacated in late January. I'll be submitting an insurance claim of course, but the scope costs besides the water damage still come to $2735. Plus $2500 insurance deductible.
They have told me each time a tenant left that the entire interior needs to be repainted. That's a large chunk of the scope costs. Communication with Reedy is difficult. I have to ask and ask for information. My contact there is very polite and friendly, but things move very sloooowly. And time is money.
I am very much questioning whether turnkeys can cash flow. They may appreciate, but cash flow is negative when tenants stay an average of 12 months and a turn scope is several thousand dollars PLUS loss of rents PLUS leasing commissions to find a new tenant.
Investor · Memphis, TN · Member since 2013 · 741 posts · 845 votes
5y
@Emily Hall, this should NOT be happening on all your properties. Unforeseen things can happen but what you're describing seems like a pattern. Something is not right, maybe the screening of the potential tenants is lacking but this is not typical! Let me know if I can help you in any way!
@Emily Hall, this should NOT be happening on all your properties. Unforeseen things can happen but what you're describing seems like a pattern. Something is not right, maybe the screening of the potential tenants is lacking but this is not typical! Let me know if I can help you in any way!
Thanks, Stephen. I will reach out privately, if you don't mind, to hear your local perspective.
Real Estate Agent · Memphis, TN. · Member since 2018 · 175 posts · 101 votes
5y
Hi Emily
We are happy to discuss the local market with you. I don't own a management company or leasing company...I am happy to give you a non-bias opinion. Just message me privately and I can provide some commentary. We work with over 200 investors (sell about 400 houses a year) and we don't own a management company...so we can listen and tell you what our customers are saying about good or bad management companies.