All Forum Posts by: Alexander A.

Congrats!  You planning on getting the next one in birmingham also?

Okay Ill bite and answer your questions.  Hopefully it will help some people out.  Answers in bold.

1. How many out of state turnkeys have you purchased?  3

2. Do you still own these properties or were any sold?  Yes

3. How involved are you with the management of the property?  Other then collecting payments and approving a repair or two, not much involvement yet.

4. What kind of cap rate, COC, ROI are you getting? Currently 20%+ COC on all 3.

5. Was the estimated rent, cap rate, ROI that was advertised close to what you are actually getting? Yes, actually got higher rent in 2 of them then what was advertised. Bonus!!  So far, the ROI has been on but only because I have had them all for less then 1 year.  The proper realization of these numbers will come years later.  So we'll see.

6. Overall, are you happy with the investment?  Extremely happy so far.

7. Which turnkey companies would you recommend or warn against?  I'd rather not advertise or call people out online but I have tried working with 5 different turnkey companies and only ended up buying from 2 of those and out of those 2, only 1 of them I would recommend.  PM me if you want details.

8. If tenants were already in place, how long did they last and what caliber tenant were they?  Tenants were in place at closing, so far zero tenant issues all 3 houses.

9. Were you satisfied with the PM that came with the deal?  Completely satisfied one two of them, somewhat satisfied on one of them but they are growing on me.  But overall, yes.

10. Do you have any advice for others looking to venture into out of state turnkeys?  Dont be afraid to pull the trigger, make sure you get the purchase agreement with contingencies on appraisal and inspection.  Dont be afraid to back out of a deal after you've signed the purchase agreement.  Visit the city and turnkey provider first hand, get a feel for who those people actually are selling, a feel for their operation, property examples and get to know the city you are looking to invest in.

Also agree with what James Wise says.  You dont have to go turnkey. I wouldnt go turnkey actually if youre just buying in your local area.  

The only reason why I go turnkey is because Im forced to buy out of state for better returns.

Actually LaTonga,

In my experience that is absolutely not typical for a turnkey provider to mark it up way above market price like that.  That is ridiculous and you should mark that turnkey provider as one you will never work with.  

Ive spoken now to at least a dozen different turnkey providers, have reviewed at least 100 turnkey properties for sale and can tell you that it is not typical for them to be marked up that high.  If anything, the most you should ever pay for a turnkey property is actual market price.  

Its absolutely okay to buy turnkey, its a lot easier that way for sure.  My last 3 rentals have all been turnkey properties, you just have to do some serious research on what you buy and make sure its good.  

My advice to you is find another turnkey provider.  

All I did was a google search for "louisville population" and the first thing that shows up is a chart that goes down.

I did however misread the years though so youre right.  Its no longer decreasing in population.  After further review, it appears after 2000, the population starting increasing again and hasnt stopped since then.

My bad!  Wasnt trying to start a war or anything.  And by all means, keep your inventory.   Dang!

from the article "Overall, they put the city up in the rankings with larger metro areas, such as New York and San Francisco."

I think that is a little far fetched.  Good for Louisville though!  I personally would not want to invest there because according to the population statistics, it has been constantly decreasing for the past 20 years.  Not really a good sign for the future dont you think?

@Curt Davis

Curt when you say things like that, that is exactly why I would never buy a turnkey from your company.  

@Makenzie Kelly

PM me the address please.

Assuming your numbers are correct, actually its not a bad deal.  But how are you doing 15% down payment with financing?  And how are you closing costs so cheap?

Does the house have new roof/plumbing/HVAC/heater?

I wouldnt touch that company with a 4 foot pole man.  Everything you said all points to bad!  Dont use them! Red flags all over.

I have been getting a lot of inquiries regarding how I purchased my turnkey rentals so I wrote this article for all the newbs out there thinking about going turnkey.  Hoping it helps out a few people.

http://www.cashflowdiaries.com/how-to-buy-a-turnke...

Let me know what you think.