Reliable Turnkey providers

[Joshua Warren]

Hello I'm looking to connect with a few reputable turnkey rental providers that you’ve personally had a good experience with.

I’m a long-term buy-and-hold investor and recently sold a portfolio, so I’m looking to redeploy capital into cash-flowing properties. I’m open to single-family homes, duplexes, or small multifamily properties in strong landlord-friendly markets with solid property management already in place. 
Thanks in advance, I appreciate any firsthand experience or advice   

[Stuart Udis]

I'm usually the contrarian in these forums, but I don't understand why so many investors actively seek out turnkey providers. To me, buying a property that was renovated a few years ago is the lower-risk approach. The major systems are still relatively new, but you also gain something a brand-new renovation can't provide: an operating track record. You can evaluate rent collections, vacancy, maintenance history, and how operating expenses have actually performed rather than relying on pro forma projections (and yes, a recently leased housing unit with a few months of operating history is still pro-forma projections)

There's also the issue of construction quality. After a few years, any shortcuts or workmanship issues are much more likely to have surfaced, making it easier for both you and your inspector to evaluate what you're actually buying.

The appeal of turnkey is obvious, but I think many investors place too much value on "brand new" and not enough value on having real operating history. I'd much rather buy a property with proven performance with the majority of the useful life on major system still in place than a building that's fresh out of a renovation with no track record. 

Maybe also just the skeptic in me, but the companies that promote the turnkey concept are probably looking to unload these liabilities as quickly as possible whereas the person who is selling a building that was renovated a few years ago has far more justifications on why to move on most notably preferential tax treatment often not available to some of these turnkey operators who are turning over inventory as quicky as possible....something worth considering.