Investor · Philadelphia, PA · Member since 2017 · 13 posts · 2 votes
I am doing flips, rentals, and turnkeys in philly. Was wondering what other features investors currently look for in turnkey investments except for the standard returns?
Rental Property Investor · Philadelphia, PA · Member since 2013 · 139 posts · 232 votes
9y
The more of the following you are able to provide, the higher a price you can request:
Inspection report by licensed inspector, legitimate sold comps within 0.1 mile range, roof warranty from licensed roofer, permits for the work performed, disclosure of how much electric/plumbing/HVAC was replaced, warranty for the heater (if new) or disclosure of what service was performed, age of windows and grade of windows (if new), warranty on appliances (if new), last service on appliances (if used), grade/brand/color/installation date of cosmetic materials (flooring, paint, etc.), etc.
If tenant in place: strong lease terms, proof of payment history, screening criteria including personality screen, security deposit & last month rent held, annual lease term, etc. Well-reviewed property management already setup.
If tenant not in place: comps for rent or guarantee of rent for a certain period of time, well-reviewed property management in place ready to market.
I'm continually amused when I see someone offering a "turn key" investment that has almost NONE of the above. Just something along the lines of "well we put in new flooring and painted the place and a tenant just moved in = turn key". I find that I usually need to put in an additional $10-15K in work in these situations to get to *my* definition of turn key and reliable tenant. Not to mention the luxury rehab flip that's 0.25 miles away that gets presented as a comp, or a "full gut rehab" with no permits pulled.
Rental Property Investor · Philadelphia, PA · Member since 2013 · 139 posts · 232 votes
9y
The more of the following you are able to provide, the higher a price you can request:
Inspection report by licensed inspector, legitimate sold comps within 0.1 mile range, roof warranty from licensed roofer, permits for the work performed, disclosure of how much electric/plumbing/HVAC was replaced, warranty for the heater (if new) or disclosure of what service was performed, age of windows and grade of windows (if new), warranty on appliances (if new), last service on appliances (if used), grade/brand/color/installation date of cosmetic materials (flooring, paint, etc.), etc.
If tenant in place: strong lease terms, proof of payment history, screening criteria including personality screen, security deposit & last month rent held, annual lease term, etc. Well-reviewed property management already setup.
If tenant not in place: comps for rent or guarantee of rent for a certain period of time, well-reviewed property management in place ready to market.
I'm continually amused when I see someone offering a "turn key" investment that has almost NONE of the above. Just something along the lines of "well we put in new flooring and painted the place and a tenant just moved in = turn key". I find that I usually need to put in an additional $10-15K in work in these situations to get to *my* definition of turn key and reliable tenant. Not to mention the luxury rehab flip that's 0.25 miles away that gets presented as a comp, or a "full gut rehab" with no permits pulled.
I am doing flips, rentals, and turnkeys in philly. Was wondering what other features investors currently look for in turnkey investments except for the standard returns?