Continuing to look into investment options I've been learning about turnkey investing and it seems like it may be a good match for me in terms of my experience level, time, and investment strategy. As in I have little experience, not a great deal of time, but would like to start slowly growing an expanded portfolio.
That said google has failed me *gasp*, so I'm turning to the good folks at the forum! Are there any turnkey companies that deal in the Eastern Iowa Area (Iowa City, Cedar Rapids, North Liberty) that you know of? Have you dealt with them in the past and if so how was the experience?
I suppose I should define my understanding of turnkey as a property that is bought, rehabbed, (perhaps) rented and is for sale. Thanks in advance! This forum and its local Iowa members have already been a huge help to me.
Good to meet you at the investors meeting last week. Sorry I didn't get your number or email. Mine is [REMOVED GMAIL - PM ME IF YOURE INTERESTED} if you use hangouts. There are some turnkey investor companies but I don't know their names. I usually turn away when I see the prices they are asking for houses. That being said Greg Beachy, the wholesaler at our investors meeting, is showing me a property in CR on Thursday that is pretty much turnkey without a tenant. I can give you his email if your interested.
Hey Beau, yeah it was great to meet all you guys. I'm new enough I don't even have a business card so I imagine I left with not many people getting my contact info.
Its good to hear that they at least exist, and I imagine any good neighborhood turnkey in our area is going to be pricey. I actually talked to Greg at the CR REI meeting so I've got his contact info.
Dan. Are you ok with 17th or 18th street se Cedar Rapids area? Think off 5th ave
I am not sure if still available or not. I was told about a property that could be for sale and its turn key and had a tenant already.
I was not interested in the property because of its location but I know for some location doesn't matter.
It's not for sale but is for sale. Person who owns it has many rentals I am told in the area and is looking to sell a couple. Guess he is looking to cut back.
Anyway let me know. I'll check on it and see then can get you information if you want it.
I know of a small turnkey on the MLS (one bedroom) that would be perfect for a rental. PM me if you want to know more, or set you up with a showing.
Pinnacle realty llc
1930 St Andrews Ct NE, Cedar Rapids, IA 52402
Licensed REALTOR® in the State of Iowa
@Dan Jones I haven't done a lot of research on turnkey companies, but in my mind they sell you a rented property with property management in place. That way if you are an out of state investor you can (supposedly) rest assured that you've got someone boots on ground where you've invested doing all the landlord/ property management duties while you collect a check. Truly passive income.
If you are planning on investing in Cedar Rapids and investing here to couldn't you just buy a rehabbed rental property with tenants and then get one of the area property management companies to handle all the headaches? It actually might save you some money as the turnkey companies are selling you a full package.
There are landlords such as myself that for some reason have decided to scale back or change directions in their investing and would be happy to sell a couple of properties with good tenants in place. Networking with the local real estate groups and just talking to friends and coworkers about these things is a great idea too. You never know who those people know. Feel free to pm me if I can be any help!
When/Where are the local REI Meetups in the Cedar Rapids area?
@Mike Young - Neighborhood is definitely something I'm trying to keep in mind and the SE side especially around wellington heights has a bad reputation. That said I would love to be in contact with someone who is selling owned rentals that have a good history. Please if you have his contact info pass it on, much appreciated!
@Patrick McInerney - Hey Patrick, sure please send me the location information. I'll PM you as follow up.
@Andrew D. - Buying a rehabbed and rented property from a current owner would be a perfect situation. I do my own property management currently, so full service turnkey is not quite ideal as I don't need the property management company. However, being new to REI and having a full time job means that I don't have the education, experience, and time to go whole hog buy distressed property, rehab, and rent.
"There are landlords such as myself that for some reason have decided to scale back or change directions in their investing and would be happy to sell a couple of properties with good tenants in place."
So that is EXACTLY what I am looking for and turnkey is just the closest term I could find to describe that situation. So thank you for putting it simply and giving me an avenue to pursue! I'll follow up in PM to talk specific people and properties.
@Ted Rave - Julie Freeman manages the local Cedar Rapids REI. PM me if you would like her contact information otherwise @Glenn McCrorey linked me to her and I'm sure could do the same for you. There is also an Eastern Iowa Corridor REI group that works in Iowa City, North Liberty, Cedar Rapids area that has a meetup. That meetup can be found here - http://www.meetup.com/Iowa-City-Area-Real-Estate-Investor-Meetup/
@Dan Jones - Great question... I have not found any local groups meeting either. I am right in the heart of the areas you mentioned. I'm in North Liberty. Sounds like there are a couple. I just checked in on the Iowa city REI. I may reach out for the CR one as well.
I understand your desire to find turnkey, but in my mind it is not a great passive income strategy for a number of reasons. Some random thoughts:
1.) Even on houses that are acquired at substantially lower than market value, cash flow seldom amounts to much. A couple hundred $ a month? Property management will eat this alive. Especially if it needs any major capitol upgrades in the next 5-10 yrs. Do the work yourself (or hire it done). If you aren't a multiplex, your property manager isn't giving you what you deserve. Trust me, I'm buying a house from an absentee landlord that had "property management" in place while his investment was destroyed...
2.) Buying at a greatly reduced rate buffers you from market corrections or changes. If you're paying a turnkey investor you're losing a lot of value (they're keeping it, not you). Find a retiring landlord. They have rented houses...
3.) As a former North Liberty resident, I think the houses there are overpriced currently. Most people that live there don't like it and it seems that people transition thru there. It's mostly young people... For that reason it would be a great place to rent, however the prices are ridiculous. Most of Iowa City's pricing is astronomical, but deals can be found. Prime rental locations near campus are tried and true, but expensive. Be mindful of floodplains in CR, but IMHO that's where I'd focus if I lived in the corridor again...
4.) I don't know of any turnkey companies in Iowa. I'm sure they're here, but they aren't as popular(?) here as elsewhere.
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