Is the BRRRR strategy possible with turnkey companies

[James Riggs]

I've owned my PR 3yrs and should soon be able to get a HELOC of 100k. I live in San Diego but looking to invest out of state. I'm looking for turnkey companies that would facilitate me using the BRRRR strategy so that I can continue to use that money over and over. I'm hoping I can do this with a new property once a year. Is this something that turnkey companies do? Specifically I keep coming back to Kansas City as a market I like. But I haven't closed the door on other markets like Atlanta or (if it were possible Nashville, Clarksville TN). I've tried looking online but it doesn't seem to be something that is mentioned on companies Web sites. I don't really want to just start randomly calling turnkey business. Any insight or recommendations would be greatly appreciated.

[Andrew Syrios]

In short, no. Turnkey companies need to make a profit themselves and since you need to be into a property for 75% of it's market value to completely BRRRR out, they would have to be all in for more like 65%. In addition, they wouldn't have a problem selling it for 90% of market value, so why would a turnkey company leave so much money on the table? From what I've seen, generally, turnkey companies sell slightly over market value, although there are exceptions of course.

This isn't to say there aren't good turnkey companies or you can't purchase good buy and hold investments from them. But you're almost never going to get a killer deal from a turnkey company.