Wisconsin Turnkey Investment Companies
Any advice on where to find turnkey investment companies in Wisconsin (and where to vet them)? I'd be looking for single or smaller multi family properties that are turnkey ready, and property managed by the same company who sold them. We live about 30-40 minutes west of Milwaukee, so I'd prefer companies that have properties within 1-2 hours of here. Pretty much the lower southeastern corner of the state, starting from Madison. If you've had a bad experience with a turnkey company, that would also be helpful to know. Please & thanks!
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@Samantha Ruiz - be careful with turn key companies. The business model incentivices the turn key operator to save cost on the rehab, inflate the ROI and - obviously - sell the property for the most amount of money. The purchase price is often not based on comparables, but on the income of the property. It's realtivley easy to find a tenant, who will pay a little but more in rent, because they have some issues in their background or they are in a bind and needed a place urgently etc. Same is with the remodeling - I estimate that more than 25% of our rehab cost typically is spent on things inside the walls - new water lines, new sewer pipes, new electrical, sometimes corrections in messed up ductwork. Just like a good flipper, a turn key opererator has to focus on items that are visible to the buyer. Typically you will see a brand new kitchen installed over old plumbing in the walls and now you can't get to it anymore.
I rarely buy flips for that reason, the last one I bought we had about 6 grand in plumbing and electrical upgrades (I knew that when making the offer) right away before putting it in service. What I just found out a few weeks ago is that they cut corners on the new roof - the backside has been bumped out, so now its only a flat 3 pitch, which makes it shed water not very well, and without ice and water shield underneeth the wind is pushing water up between the shingles and I have wet drywall and wet insulation in a house that is occupied. The flipper saved $500 on the roof, 2 years later I have to tear it off and replace it with a membrane, plus take the soaking drywall down an deal with that mess. No home inspector would have found this.
Its always best to buy properties that have been remodeled by the owner occupant; you know they have been watching the contractor like a hawk and stuff has been done the right way.