I’ve been hearing a lot about turnkey properties — homes that are already renovated, tenant-occupied, and ready to cash flow from day one.On paper, they sound like a stress-free way to get started (especially if you’re not local), but I’ve also read mixed opinions about whether they really perform as advertised once you factor in management fees, maintenance, and long-term expenses.For those who’ve bought turnkey rentals:Did the numbers hold up after your first year or two?

Instead of “trading up” our lifestyle every time income increased, we saved up and bought more rentals.

The logistics and legal workings to do that would be massive and not worth the hassle, more than likely.So what Ron noted is the best option.  10% might not be the right number based on a ton of factors: not just the excess land, but similar. 

Market tenants are complete losers after factor in the turnover costs when stop paying, etc.

A few points worth noting:Asset Class/Use: Single tenant commercial warrants lower leverage than single occupancy residential because it's easier to keep that single family home occupied and the value is dependent on many buildings sharing similar characteristics whereas commercial property values are dependent on more factors including income and tenancy.

All of these risk factors multiply.You have to take the edge of all of these factors as much as possible.

You're not factoring in other expenses such as repairs, capex, maintenance, utilities, etc so that $200 could be $800-1,000.

Every landlord experiences non-payment and vacancy at some point but its good that you haven't had any issues thus far.Aside from being your friends, what other factors make your current tenants relatively easy/stress-free to rent to? 

Hi Nick - While that does sound a bit high at face value, as others have mentioned, there are a number of factors that could influence the rate upward.

Curious how everyone here handles timing on dispositions going into winter in the northern states where snow becomes a real factor.