Our Experience with Out-of-State Turnkey Rentals

Our Experience with Out-of-State Turnkey Rentals

Member since 2026 · 36 posts · 45 votes

We purchased out-of-state rental properties through Rent to Retirement last year and I wanted to share a straightforward reflection on the experience so far.

From a process standpoint, the acquisition side was smooth. The team was responsive, and the property selection and closing process were organized. It did feel fairly turnkey from purchase through onboarding.

As part of the purchase, the properties also came with one year of property management included. However, the post-purchase experience ended up being more challenging than expected. Both units in the duplexes consistently had late rent issues, and ultimately both properties experienced tenant problems that led to evictions within the first year of ownership. While tenant issues and evictions are part of rental property ownership in general, the combination of ongoing late payments and eventual evictions had a meaningful impact on cash flow and performance.

The bigger takeaway for us has not been about any one company specifically, but about strategy. We underestimated the importance of being local and hands-on. Even with a “turnkey” model that included built-in property management, we learned that strong day-to-day oversight, tighter screening control, and the ability to respond quickly are critical factors in outcomes.

Our conclusion from this experience is simple: going forward, we will focus on properties we can manage ourselves locally. That level of control and proximity is something we now see as essential to how we invest.

Every investor’s situation is different, and this reflects our personal experience.

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Stuart UdisPro Member
Attorney · Philadelphia · Member since 2018 · 2k+ posts · 3k+ votes
3mo

@Samantha Andrews  Unfortunately, one of the biggest mistakes investors make in this situation is failing to properly price risk and account for the true realities of operating expenses and capital expenditures in these markets. On paper, the spreadsheet almost always paints a more favorable picture than what ultimately unfolds in practice. That's why I'm often skeptical when I observe investors immediately after closing on their first out-of-state property, what a great experience it has been and what an incredible investment they've acquired. At that stage, they haven't owned the property long enough for the operational realities, unexpected expenses, and management challenges to fully reveal themselves. 

In many instances even closer proximity and hands on approaches are not enough to turn the tide as the underlying real estate is the bigger issue. When I hear both units in the duplex you acquire had trouble tenants that has me believing the underlying real estate is the core issue. Wish more investors would come forward and post stories like the one you shared. It would help investors better appreciate the risks associated with the strategy you sought out.

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  • Member since 2026 · 36 posts · 45 votes
    1h

    A quick update since my last post:

    We have since evicted our second tenant and completed the transition to a new property management company—all within the first 12 months of ownership. Although it is still early, the experience has been noticeably different. The new team has been knowledgeable and action-oriented, communicates clearly, and follows through on its commitments. This has reinforced one of our biggest lessons from this experience: the quality of the property management team is critical when investing out-of-state.

    I also want to clarify the goodwill discount from Rent to Retirement that I mentioned previously. They offered us a substantial $10,000 credit toward a future purchase, which we genuinely appreciated. However, accepting the credit required us to sign a non-disparagement agreement that specifically referenced BiggerPockets. We ultimately declined because retaining the ability to speak openly and honestly about our experience was more important to us.

    I want to emphasize that experiences with Rent to Retirement—and turnkey investing more broadly—have varied. Some investors have reported positive outcomes, while others have encountered challenges. Our own experience has unfortunately been negative, but it is only one experience. We believe prospective investors benefit from hearing both the positive and the negative so they can evaluate the risks and make informed decisions.

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