Do you guys recommend the turnkey rental companies to start?

Question

I’m completely new to this aside from reading books and listening to podcasts. Do you guys recommend using renttoretirement, doorvest, or any other app to purchase my first rental property? It would have to be out of state for me since the real estate prices are out of reach for me locally (San Diego area) and I would no doubt need to hire a property management company

Account Closed · Answer

@Jaime Osuna - welcome to the forums!  As this has been a topic covered many times on many of the forums, allow me to jumpstart your due diligence.  Below you can find many reviews and posts regarding working with Rent ot Retirement.  Feel free to message me if you have any questions as well!https://www.biggerpockets.com/users/ericw536/references

https://www.biggerpockets.com/forums/92/topics/518583-feedback-on-renttoretirement-and-zach-lemaster

https://www.biggerpockets.com/forums/92/topics/765347-rent-to-retirement-review

https://www.biggerpockets.com/forums/850/topics/895660-my-first-investment-property-an-out-of-state-deal

https://www.biggerpockets.com/forums/92/topics/893621-rent-to-retirement-review?highlight_post=5222888&page=1#p5222888

https://www.biggerpockets.com/forums/311/topics/915728-experience-with-rent-to-retirement-turnkey?page=1#p5345200

https://www.biggerpockets.com/forums/92/topics/808479-rent-to-retirement-experiences

https://www.biggerpockets.com/forums/12/topics/533693-anyone-worked-with-renttoretirement-turnkey

https://www.biggerpockets.com/forums/92/topics/581730-rent-to-retirement-zach

https://www.biggerpockets.com/forums/48/topics/874096-reviews-on-r2r-and-nch?page=1&utm_source=Iterable&utm_medium=email&utm_campaign=Transactional:%20topic_notification&utm_content=Transactional#p5123754

https://www.biggerpockets.com/forums/311/topics/883772-turnkey-investing-renttoretirement-feedback-reviews?highlight_post=5171720&page=1#p5171720

https://www.biggerpockets.com/users/ZacharyCole/references

Joseph Schweizer · Answer

HI @Jaime Osuna!

Turnkey could be a good strategy to get started. However, it will really depend on your goals and current situation. I went with turnkey for my first property (see post below). I felt turnkey was good a route for me to get started because I work full-time outside of real estate, I do not have any background in construction/trades, wanted to go out of state, I had some capital available, I did not have time to manage any rehabs. You will have to identify the pros and cons of turnkey investing and determine if that strategy works for your situation and goals. Happy to discuss more about my experience if it will help you decide if the strategy is right for you.

https://www.biggerpockets.com/forums/850/topics/895660-my-first-investment-property-an-out-of-state-deal

Best Wishes!

J Zev J. · Answer

@Jaime Osuna - I haven't used them personally, but I believe @Zach Lemaster with Rent to Retirement is a legitimate turnkey provider probably worth checking out. Either way, definitely do your due diligence with any provider you choose.

Taz Zettergren · Answer

@Jaime Osuna welcome to BP and congrats on the first post! Turnkey would be a great option for you if you don't have the time, effort, money to spend in the industry and if you have the right provider it can alleviate the risk for you. I would recommend a company that buys their own properties, has a renovation process in place and owns their own property management company. That way your experience is tied directly to the provider and you can hold them accountable. There are a couple providers out of Memphis and one of them operates in 12 different markets in the southern/middle part of the country. Best of luck! Feel free to reach out if I can be of any assistance

Account Closed · Answer

@Jaime Osuna Whichever way you decide...keep a bit of a buffer and some grit to deal with unexpected issues.  Real estate is by no means perfect or a magic bullet.  Learn as much as you can and use bigger pockets as a great resource.

Patrick Bavaro · Answer

@Jaime Osuna turnkey was my first purchase and I am SUPER happy I went that route. I will say that due diligence is key here as there are many bad turnkey company’s with far less good ones.

Currently, I’m in the process of building a new build 4/3 out in Cape Coral FL through a turnkey provider. Total all in cost was right about $265k, only required 10% down, rents right now at about $2300, and post construction appraisals are around $340k-$410k depending on the location. It’s a win win win all around for me. Let me know if you’d like to connect. Just message me. Good luck!

Jabari Long · Answer

I do recommend them as an option for newbie investors.  Once you can leverage their resources directly then you’ll have option should you decide to scale in that market.  Be sure to interview several providers before deciding.

Danielle Jackson · Answer

Do you know where you want to invest? How are you evaluating the markets? I would suggest finding an agent in the market you are looking at to help ensure you understand their landlord/tenant laws, familiarize you with the neighborhoods, and give you insights you will never find by researching online.

Justin Kurpius · Answer

How hungry are you? Do you have a w2 job and no time? If you can afford it, i would say absolutely.

Do you guys recommend the turnkey rental companies to start?

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