Out of State Turnkey Rentals

Out of State Investing
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Out of State Turnkey Rentals

John Bratcher
Member since 2018 · 1 post · 7 votes

Looking to get started with Longterm Rentals and very interested in Out of state Turnkey companies like Mid south Homebuyers hasn't anyone purchased a project from them as they advertised they have qualified tenants with purchase and built in warranties 

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Caleb Brown
Real Estate Agent · Kansas City · Member since 2018 · 4k+ posts · 3k+ votes
9mo

There are mixed reviews for turnkey companies. If you are going to purchase from a turnkey company make sure you do inspections with your own inspector. It might be worth it to also have your own agent in a deal. You want to protect yourself and verify. Verify they did the rehab correctly. Verify comps and the price. Verify the area, tenants and understand what class it is in. Don't take what they say, do your due diligence 

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  • Caleb Brown
    Real Estate Agent · Kansas City · Member since 2018 · 4k+ posts · 3k+ votes
    9mo

    There are mixed reviews for turnkey companies. If you are going to purchase from a turnkey company make sure you do inspections with your own inspector. It might be worth it to also have your own agent in a deal. You want to protect yourself and verify. Verify they did the rehab correctly. Verify comps and the price. Verify the area, tenants and understand what class it is in. Don't take what they say, do your due diligence 

    2Reply
  • Kerlous TadresBusiness Member
    Realtor · Columbus, OH · Member since 2023 · 1k+ posts · 1k+ votes
    9mo

    I’d treat the tenant and warranty as a bonus, not the reason to buy, and run the numbers assuming the tenant moves out. If the deal still cash flows without the guarantees, then it’s probably worth a closer look.

    [email protected]614-490-1163
    Kerlous Tadres | Reafco Real Estate539 Reviews
    WebsiteView Page
    1Reply
  • Allie McAlister
    Memphis, TN · Member since 2024 · 180 posts · 223 votes
    9mo
    Quote from @John Bratcher:

    Looking to get started with Longterm Rentals and very interested in Out of state Turnkey companies like Mid south Homebuyers hasn't anyone purchased a project from them as they advertised they have qualified tenants with purchase and built in warranties 


    Hey John- what Caleb Brown said. Just make sure you have a third party ( preferably a Realtor and a licensed home inspector or licensed conrcator ) that you trust to represent you and verify the condition of the home when buying from a "one-stop-shop" like a turnkey company. P.S Your Realtor should also be able to source you the same kind of properties without having to go through a turnkey company and pay that premium :) We do that for our out of state investors all of the time. 

    Best of luck!

    1Reply
  • Clark Thornton
    Property Manager · Orlando, FL · Member since 2025 · 110 posts · 50 votes
    9mo

    What markets are you looking to start potentially investing in?

    0Reply
  • Allison Park
    Member since 2024 · 158 posts · 88 votes
    9mo

    There was recently a good thread from someone who bought from mid south.  Tenant was there 2 years and turn over costs ate most of the cashflow for the two years.  The management overhead seems high for the convenience .  

    0Reply
  • Gregory SchwartzBusiness Member
    Rental Property Investor · College Station, TX · Member since 2016 · 1k+ posts · 1k+ votes
    9mo

    @John Bratcher if you're looking for turn key we have some nice option here in Texas

    [email protected]443-812-0357
    Schwartz Realty Group5116 Reviews
    WebsiteView Page
    0Reply
  • Arman AhmedPro Member
    Real Estate Agent · Columbus Cleveland Dayton, OH · Member since 2024 · 2k+ posts · 913 votes
    9mo

    @John Bratcher

    Turnkey can be a solid way to get started out of state, but the big thing is understanding where the value is actually coming from. A lot of turnkey deals work because they’re convenient, not because they’re deeply discounted, so it’s important to look closely at purchase price vs true market value, not just the advertised cash flow. I’d recommend verifying rents with local comps, reviewing real tenant payment history (not just “placed tenant” claims), and understanding what the warranties really cover and for how long. In many cases, investors end up preferring deals where they have more transparency and control over pricing, rehab, and ongoing operations, even if that means being a bit more hands-on upfront.

    [email protected]614-418-6081
    0Reply
  • Jimmy LieuBusiness Member
    Real Estate Agent · Columbus, OH · Member since 2019 · 3k+ posts · 2k+ votes
    9mo
    Quote from @John Bratcher:

    Looking to get started with Longterm Rentals and very interested in Out of state Turnkey companies like Mid south Homebuyers hasn't anyone purchased a project from them as they advertised they have qualified tenants with purchase and built in warranties 

    Hey John, welcome to BP and awesome that you’re kicking off your long-term rental journey, turnkey can be a good way to get started especially if you want a more hands-off entry, but just be careful to do your own due diligence on any company’s claims about qualified tenants and warranties because not all turnkey providers are created equal and sometimes the promised rent or tenant quality doesn’t match what you’d see in reality; one thing that helps is looking at strong markets where fundamentals are solid so you’re stacking the odds in your favor, and a market I’d recommend exploring is Columbus, Ohio because the macroeconomics here are really strong with fast population and job growth and a wave of big companies moving in or expanding like Intel, Amazon, Google, Honda, Microsoft, LG, Nationwide and more which supports both rent demand and long-term appreciation, and you can still find deals in the $120k–180k range that hit the 1% rule or at least cash flow right away so even if a turnkey provider falls short on their projections the underlying market helps carry the investment; turnkey companies vary quite a bit, but pairing them with a market like Columbus where fundamentals are backed by real growth can make a big difference. Happy to connect and answer any questions you have!

    [email protected]614-300-7535
    Jimmy Lieu, Red 1 Realty4.9120 Reviews
    WebsiteView Page
    1Reply
  • Marc RiceBusiness Member
    Real Estate Agent · Columbus Cleveland Dayton, OH · Member since 2018 · 2k+ posts · 1k+ votes
    9mo
    Quote from @John Bratcher:

    Looking to get started with Longterm Rentals and very interested in Out of state Turnkey companies like Mid south Homebuyers hasn't anyone purchased a project from them as they advertised they have qualified tenants with purchase and built in warranties 


     Out of state investing could be tricky. You will need a good team of a lender, a PM, a GC and an agent who knows the area. Additional verification of such companies is a must

    [email protected]614-363-2787
    Marc Rice | Investor Friendly Agent at Reafco Tailwind Team574 Reviews
    WebsiteView Page
    0Reply
  • Jason Frink
    Member since 2022 · 13 posts · 11 votes
    5mo

    Hey John, I can only speak to my own experience with Mid South. I bought with them in 2024 and the experience was top notch. My property continues to make passive income monthly and their property management is second to none. All that said the market has cooled out there and the property value went down some, but I'm in this for the long haul 10+ years and expect it to do just fine. I'm about to buy my next property with them. 

    0Reply
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