TURNKEY INVESTING search!
Teuku Rafi Alighan LaksmanaPro Member
Member since 2026 · 1 post · 2 votesTURNKEY INVESTING search!
Most Popular Reply
Real Estate Agent · Los Angeles, CA · Member since 2018 · 2k+ posts · 1k+ votes
3dThinking creatively, I wonder if you could reach out to Property Managers in the areas you want to invest and see what they have. They might have owners considering to sell and it is already under professional management. PMs have real estate licenses so they can also do the transaction and make the commission that way.
In terms of where to invest, there are over 19,000 cities across the United States and you are going to get bombarded by Realtors in this group to say their market is best. The reality is you can make it work in almost any market. Figure out what is important to you and go from there. Typically your own backyard is a good place to start.
8 Replies
- Real Estate Consultant · St. Louis, MO · Member since 2024 · 4 posts · 2 votes3d
Hey Teuku, we've moved over 500 turnkey doors in the STL/Cahokia market over the past two years, and work with PMs in the area to ensure a seamless investment experience. Happy to chat some more about it or answer any questions, just shoot me a message!
- Real Estate Agent · Kansas City · Member since 2018 · 4k+ posts · 3k+ votes3d
Happy to chat on the Kansas City market. I have referrals for PM's if you need those
- Real Estate Agent · Los Angeles, CA · Member since 2018 · 2k+ posts · 1k+ votes3d
Thinking creatively, I wonder if you could reach out to Property Managers in the areas you want to invest and see what they have. They might have owners considering to sell and it is already under professional management. PMs have real estate licenses so they can also do the transaction and make the commission that way.
In terms of where to invest, there are over 19,000 cities across the United States and you are going to get bombarded by Realtors in this group to say their market is best. The reality is you can make it work in almost any market. Figure out what is important to you and go from there. Typically your own backyard is a good place to start.
- 2dArman AhmedPro MemberReal Estate Agent · Columbus Cleveland Dayton, OH · Member since 2024 · 2k+ posts · 923 votes
Quote from @Teuku Rafi Alighan Laksmana:
I’m interested in investing in a turnkey property. What are some great markets that would be a great place to invest? any great companies that would provide the property and property management? anyone have experience with turnkeyinvest.com?
For turnkey, I’d focus less on the company name and more on the actual property numbers, neighborhood, rent and PM track record. If you’re open to out of state, I’d definitely compare a few Midwest markets too. The Midwest market is worth putting on the radar since there are still lower entry points and established investor teams. Happy to connect and share what I’m seeing.
- Real Estate Broker · Cleveland Dayton Cincinnati Toledo Columbus & Akron, OH · Member since 2013 · 30k+ posts · 20k+ votes2d
Prolly Cleveland. Most dopest awesomest coolest joint in the USA.
- 1dGregory AcsPro MemberLender · MD · Member since 2025 · 167 posts · 64 votes
Hi Teuku,
Turnkey investing can be a great way to get started, especially if you’re investing out of state. I’d spend as much time evaluating the company as the property itself. Look at their renovation quality, property management track record, tenant placement, maintenance process, and ask for references from investors who have owned properties with them for a few years, not just recent buyers. Community discussions show that experiences with turnkey providers can vary widely, so thorough due diligence is important.
As for , I’ve seen both positive experiences and recommendations to verify the numbers independently before moving forward. I’d run your own cash flow analysis and compare a few providers before making a decision. If you decide to purchase a turnkey property and want to compare financing options, I’d be happy to help. Feel free to send me a message.
- 1dDrew SygitBusiness MemberProperty Manager · Royal Oak, MI · Member since 2012 · 12k+ posts · 9k+ votes
A common issue, so Copy & Paste info below:
You’re ALWAYS better off investing locally, where it’s easier to:
· Learn the market
· Network to find deals
· Network to find contractors
· Be more hands-on
· Driveby property to keep tabs on it
· Network to find a decent Property Management Company (PMC)
Next best location is somewhere else you lived, where you have an existing network of family & friends to help you as accomplish the above list as needed.
If you invest OOS, your biggest challenge won't be finding properties to meet your goals on paper, it’ll be successfully building a knowledgeable & trustworthy local team.
The biggest mistake we see OOS investors making in our market, over and over again, is not fully understanding Neighborhood/Property/Tenant Classes and how they impact your probability of success!
They all run their ROI numbers assuming Class A results – when buying Class B, C & even D rentals.
Then they’re shocked when their performance expectations aren't met😞
If you choose to invest OOS, and have little to no landlord experience, we highly recommend targeting Class B Neighborhoods/Properties/Tenants. If you target Class C, you better be prepared emotionally & financially for plenty of challenges.
You can find Class B properties in the Midwest to BRRRR, but it will take more digging and YOU will need to understand how to analyze & identify them - because a lot of agents, wholesalers, PMCs, etc. will try to sell you Class C or D misrepresented as Class B:
· Many of them don't know/care what Class the properties are, so they're incompetent.
· Others know exactly what they are doing, so should be labeled as crooks!
EITHER WAY YOU LOSE!Why is Property Class so important for investors to understand and apply in their investing strategies?
Because the Property Class dictates the Class of the tenant pool that the property will attract.
The Tenant Class greatly impacts rental income stability and property maintenance/damage by tenants.
Both Property Class and Tenant Class will affect what type of contractors, handymen and property management companies you should target and be willing to deal with a property.
The Property Class will also impact the maintenance & renovations you do to, “Maintain to the Neighborhood/Market”.
Why is that important?
Well, if you buy & renovate a property in Class D area to Class A standards, what Tenant Class will actually rent it?
Or, if you put several Class D tenants in a Class A four-plex, what do you think will happen to the property?
What do you think will happen if you rehab a Class D rental to Class A standards?
So, if you fail to apply the correct assumptions to a property, your expectations won’t be met, and it may even be a financial disaster.
We use the following to rank Property Classes, in order of importance:
Property Tenant Pool: closely linked to location, but not always.
Property Location: closely linked to tenant pool, but not always.
Property Condition & Amenities: it’s important to, “Maintain to the Neighborhood/Market.”
Key metrics for each Property Class:
Class A Properties:
Tenant Pool: Majority of FICO scores 680+, no convictions/evictions in last 7 years.
Tenant Default: 0-5% probability of eviction or early lease termination.
Section 8: Class A rents are too high and won’t be approved.
Vacancies: 5-10%, depending on market conditions.
Cashflow vs Appreciation: Typically, 3-5 years for positive cashflow, but you get highest relative rent & value appreciation.Class B Properties:
Tenant Pool: Majority of FICO scores 620-680, some blemishes, no convictions/evictions in last 5 years.
Tenant Default: 5-10% probability of eviction or early lease termination.
Vacancies: 10-15%, depending on market conditions.
Cashflow vs Appreciation: Typically, 1-3 years for positive cashflow, balanced amounts of relative rent & value appreciation.
Section 8: Class B rents are usually too high for the Section 8 program.Class C Properties:
Tenant Pool: Majority of FICO scores 560-620, many blemishes, but should have no convictions/evictions in last 3 years. Verifying recent 2-years of rental history very important! Same for 2-years of job/income stability.
Tenant Default: 10-20% probability of eviction or early lease termination.
Section 8: Class C rents usually meet program requirements, proper screening still recommended.
Vacancies: 10-20%, depending on market conditions and tenant screening.
Cashflow vs Appreciation: Should cashflow immediately, at the lower end of relative rent & value appreciation.
Class D Properties:
Tenant Pool: Majority of FICO scores under 560, little to no good tradelines, lots of collections & chargeoffs, but should have no convictions/evictions in last 12 months. Verifying last 2-years of rental history and income/employment extremely important to find the “best of the worst”.
Tenant Default: 20-30% probability of eviction or early lease termination.
Section 8: Class D rents meet program requirements, often challenges to pass Section 8 inspection.
Vacancies: 20%+, depending on market conditions and tenant screening.
Cashflow vs Appreciation: Typically, all cashflow with little, maybe even negative, relative rent & value appreciation.Where did we get our FICO credit score information from?
Check out this chart:
FICO Score
Pct of Population
Default Probability
800 or more
13.00%
1.00%
750-799
27.00%
1.00%
700-749
18.00%
4.40%
650-699
15.00%
8.90%
600-649
12.00%
15.80%
550-599
8.00%
22.50%
500-549
5.00%
28.40%
Less than 499
2.00%
41.00%
Make sure you understand the Class of properties you are looking at and the corresponding results to expect.
For example, Metro Detroit has 132 cities and the City of Detroit 183 Neighborhoods, which we’re analyzing and classifying to make better investing decisions.
Logical Property Management4.9458 Reviews- 1dJay HinrichsBusiness MemberReal Estate Consultant · Summerlin, NV · Member since 2014 · 45k+ posts · 66k+ votes
this is very detailed.. one can skip most of this and simply talk to a very reputable PM in the market and ask them what neighborhoods they recommend and do they have any landlords wishing to exit.. most PM's will be in contact with sellers and will be first to know if they want to sell.
other tidbit I like to throw in there is figure out the median home price in a given area you want to invest in and then buy at that number or higher this will generally get you into more stable and secure neighborhoods .. dont get fixated on what makes 8 % return over what makes a 10% the return is moot if you buy poorly and realize you bought in a poor section of town.
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