Rocky start to turnkey investing --> perspective needed
Hey BP Community- Wanted to share a bit of my story here to get some perspective. I started reading the site back in January and after many conversations and a few site visits, I decided to purchase two out-of-state SFRs using the same turkey provider (both closed at the end of April). I’ll write a longer post about my purchase experience later but overall it was incredibly smooth and easy…. I even had both properties appraise for more than purchase price! Both homes are in solid class B neighborhoods in TN with rents between $1,000-1,200/month.
My frustration began once the tenants moved in. Both places were rented at the time of closing with deposits and first month (May) paid at lease signing. Property 1 has been a disaster from a first-time investor’s standpoint. The tenants basically stopped paying and communicating after moving in and we had to file papers to evict at the end of June. I had a court date last week where possession was granted back to me. If the tenant doesn't pay in full (i.e. 2 months) in 10 days, we file a writ to remove the tenants and I have to start over.
Property #2 has been better, but not smooth. They paid in full for June (thank goodness), but only paid a partial amount for July (about 60%) with the promise of paying in full by July 12th. It’s now the 16th and they still have not paid in full and are not responding to the management company. I’m not sure where this one will go, but I’m certainly not brimming with confidence.
Don’t get me wrong, I understand that stuff happens and being a landlord is more than just “collecting checks”; you’ve got to have a stomach for some unpleasantness and for things to not go as planned. However I've got to say, I wasn't mentally prepared for such a rocky start. In the three months I’ve owned, I'm running about 50% vacancy (on average) for 2 properties! I had hopes of buying 2-3 more SFRs before the end of the year, but now I don’t want to do anything until I see these situations resolve and I quantify the bleeding.
Does anyone else have a similar experience? Or perhaps words of advice to give me some perspective? Feeling a bit dejected at the moment….
