Pre rehab, turnkey property company in Memphis BRRRR

[Eric Hyde]

Okay, I had to use some key words in the subject like to trigger some keyword alerts. Lol...okay, here is my question. Has anyone here purchased a pre rehab home from a turnkey company and used their 'rehab crew', for a lack of better words, to get it rent ready (BRRRR)? If so, what has been your experience? I am in the middle of a buy and hold deal from a Memphis turnkey provider (rehab being worked on as we speak). I am excited about my first deal and hope it goes well. In addition to that, they supposedly also have an inventory of PRE rehab homes they sell that 'don't meet their numbers'. These are homes they purchased and own in their inventory. As the investor, I can but the home from them for, say $60K...use their rehab crew (maybe from their PM company?) and spend $20K (for example). In this example, I am $80K into the deal. The ARV is worth $95K or $100K. I would rent it out after rehabbing it but wonder if there is a genuine benefit by doing it this way versus finding my own deal. Make sense? Oh....and I live out of state!

Thanks for your help everyone!

Eric

[Patrick Anibaldi]

Eric - Memphis has a ton of opportunity, but also a ton of risk, especially for the out of state investor. BE CAREFUL! Dont commit to a 2nd deal until you see some success from the first. Trust but verify, especialy any ARVs and rents that are promised pre-rehab. Dont rely on any turnkey to do your due diligence.