Is turnkey investment good idea ?

Is turnkey investment good idea ?

Rental Property Investor · Fort Lauderdale, FL · Member since 2019 · 27 posts · 14 votes

Hello,

I need some recommendation if a turnkey options is the best idea.

At the moment I live overseas working for a major airline.

I want to invest in rental properties and this turnkey option came across my research.

I have been talking to this big group that offer this option,

Please I need if possible a feedback wether this is a good deal and if you would take it.

It's a SFH 3/2 located north of the Tampa area ( holiday)

Their asking price is 125K which is about 6% over the market value.

What they offer I really like because gives me peace of mind being far away from the property.

They offer is the following:

2 year rental guarantee

1 year appliances guarantee

2 year PM cost covered

The rent at the moment is 900/month

Taxes are 65/month

Of course I need to add extra expenses such as insurance, water n sewer, lawn maint, etc

My plan is to finance it with an investment mortgage with 20% down.

Do you think is a good deal ?

Should I research for more options?

Is it a good idea to finance it with a traditional mortgage or are there any other ways to do it ?

I really appreciate any comments on this

Thank you

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Real Estate Broker · Cleveland Dayton Cincinnati Toledo Columbus & Akron, OH · Member since 2013 · 30k+ posts · 20k+ votes
6y
Originally posted by @David Esteban:

Hello,

I need some recommendation if a turnkey options is the best idea.

At the moment I live overseas working for a major airline.

I want to invest in rental properties and this turnkey option came across my research.

I have been talking to this big group that offer this option,

Please I need if possible a feedback wether this is a good deal and if you would take it.

It's a SFH 3/2 located north of the Tampa area ( holiday)

Their asking price is 125K which is about 6% over the market value.

What they offer I really like because gives me peace of mind being far away from the property.

They offer is the following:

2 year rental guarantee

1 year appliances guarantee

2 year PM cost covered

The rent at the moment is 900/month

Taxes are 65/month

Of course I need to add extra expenses such as insurance, water n sewer, lawn maint, etc

My plan is to finance it with an investment mortgage with 20% down.

Do you think is a good deal ?

Should I research for more options?

Is it a good idea to finance it with a traditional mortgage or are there any other ways to do it ?

I really appreciate any comments on this

Thank you

 If you are buying a property from turnkey provider who needs to offer a 2 year rental guarantee and a 2 year PM guarantee I can almost guarantee you that you're drastically overpaying for the property or dealing with a very inexperienced turnkey provider. Offering these types of guarantees are not viable from a property management perspective. Huge red flag.

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  • Rental Property Investor · Fort Lauderdale, FL · Member since 2019 · 27 posts · 14 votes
    6y

    @Chad Daniel

    Hi chad

    Thanks for the comment and info.

    I will send you a Pm

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