Are Turnkey Rental Properties Actually Profitable for Out-of-State Investors?

[Christopher Rubio]

Hey everyone,

I’m a newer investor exploring out-of-state markets in the $100K–$150K range and trying to figure out the best way to start. I’ve been hearing a lot about turnkey properties — homes that are already renovated, tenant-occupied, and ready to cash flow from day one.

On paper, they sound like a stress-free way to get started (especially if you’re not local), but I’ve also read mixed opinions about whether they really perform as advertised once you factor in management fees, maintenance, and long-term expenses.

For those who’ve bought turnkey rentals:

• Did the numbers hold up after your first year or two?
• How was your experience working with the turnkey provider and property manager?
• Do turnkey properties make sense for building a portfolio, or are they better as a stepping stone to something else (like BRRRR or small multifamily)?

I’d love to hear real experiences — the good and the bad — especially from other out-of-state investors.

Christopher

[Jay Hurst]

Quote from @Christopher Rubio:

Hey everyone,

I’m a newer investor exploring out-of-state markets in the $100K–$150K range and trying to figure out the best way to start. I’ve been hearing a lot about turnkey properties — homes that are already renovated, tenant-occupied, and ready to cash flow from day one.

On paper, they sound like a stress-free way to get started (especially if you’re not local), but I’ve also read mixed opinions about whether they really perform as advertised once you factor in management fees, maintenance, and long-term expenses.

For those who’ve bought turnkey rentals:

• Did the numbers hold up after your first year or two?
• How was your experience working with the turnkey provider and property manager?
• Do turnkey properties make sense for building a portfolio, or are they better as a stepping stone to something else (like BRRRR or small multifamily)?

I’d love to hear real experiences — the good and the bad — especially from other out-of-state investors.

Christopher

In that price range, stress free is exactly opposite of reality. Be prepared to go months without rent either because your tenent stops paying and/or you have to spend a few months and 10k to get the property back ready to rent due to the damage caused but the previous tenant (who you may or may not have had to spend the time and money to evict). Rinse and repeat. But, the good news is you can expect little to no price appreacation.

Sometimes,  actually the vast majority of the time, things are cheap for a reason.