All Forum Posts by: Account Closed

Hello BP

I’m off to a bumpy start with a turn-key company. I’m weighing my options and any input would be greatly appreciated.

I purchased a new construction SFH in Atlanta suburbs (Covington). I live in San Francisco. The company told me the houses won't be vacant for over 60 days max, normally rented much faster. Also, rent projections are within $50 of accuracy. In reality, the house sat vacant 4 months (around the holidays) and I ended up agreeing to rent it for $175 less than projected. 43% less cash flow than projected.. I'm already un-happy and tell them they should correct it somehow. They offer to pay the leasing/marketing fee - $900.

Next month I see the bill for $900 leasing fee + $300 for a repair since there was no hot water (in a brand new house - they were responsible for overseeing that the hot water heater was up and running before closing). The house is under warranty and they could of had it sorted out for no cost (if contacted builder) but they went with their own plumber and I can not get reimbursed now. They are not budging when I tell them I need to be reimbursed.

Lots of problems already. The turn-key company partners up with a local PM. With all of these problems in the first 5 months, it’s clear that I need to cut them all out..

• Should I be interviewing PM's in Atlanta?

• How crazy of an idea is it to manage it myself, from CA? I have recommended plumbers, electricians, and handy-men. The house is brand-new and the hope is that it’s not going to be high-maintenance..

I’ve been told turn-key can end up costing you and now I’m paying the price. Thanks for your time, in advanced...

Ryan

Thank you guys. I ended up making the offer later last night before receiving your responses. I did bring up saving him money on not paying an agent's fee and he verbally accepted my offer. When I receive the contract, I'll have an attorney look it over. I'll make sure the terms of the contract give me an out if I find something during inspection. 

Thank you for your responses!

Hello BP,

I'd like to reach out for some advice on making an offer, first time and I want to understand the process.

I came across a great listing on Redfin, the owner (who is also the agent) is selling his rental property and the numbers look solid. Seems like a great find, but it's been on the market for about 3 months. I asked the owner why he thinks that is, and he's saying he listed too high but just lowered and now there's a lot more interest. 

I'm considering not using an agent since I already have the house in mind, and I believe I can negotiate a lower price due to saving the seller a 2.5% agent fee? Is this true?

I'm thinking these are the steps, let me know if I'm leaving anything vital out.

1.) I'll contact seller through email, make an offer. We'll eventually settle on a price.

2.) I'll work with a lawyer to view seller's contract.

3.) My lender will send for an appraisal.

4.) I'll have the inspection done.

Missing any big steps? 

Thanks in advanced. 

Ryan