My First Turnkey Property: Deal Breakdown

[Victor Mora]

My first turnkey rental (3.5 years later: real numbers vs projections)

Thought I’d share how my first deal actually performed vs what I was sold.

This was for a 3 bed 2 bath in Oklahoma City, OK.

Expectation:

List price: $175K
Rent: $1,150/month

What I expected:

- Solid cash flow

- Truly passive, turnkey experience.

- Minimal surprises, as renovations were recent.

Reality:

Appraisal price: $155K : $20k below list price.

I paid $165K for the property.

- Cash flow was lower than expected after maintenance + vacancy.

- Property management quality mattered way more than I thought.

- Repairs were lumpy. Upon my first tenant's move out, I was hit with $2880 of needed repairs and maintenance, of which the security deposit only covered $1150.

What went right:

- It forced me to learn how to analyze deals. As this was my first property, there was a lot I had to learn about market comps, due diligence, and negotiating.

- Tenant demand has been consistent.

- It still produces positive cash flow.

What I’d do differently:

- Underwrite more conservatively.

- Vet property management MUCH more.

- Assume higher maintenance from day one.

Has anyone else started with turnkey? How did your first deal compare to expectations?

Also, are there trusted turnkey operators that you would recommend to optimize for cash flow, tenant retention, consistency, and a low-touch (passive) investor experience with great customer service?

[Nicholas L.]

@Victor Mora

hello.  thanks for the post and for the transparency.

you said this property still produces positive cash flow.  how is that possible based on what you posted?  seems like it doesn't...

i don't do turnkey because i am not a HNWI looking to diversify.  I'm grinding out painful BRRRRs to get the equity.

happy to talk BRRRRs or anything else