First Turnkey...just do it?

[Leah McNell]

Hi all! My husband and I are itching to get into real estate, but currently live overseas (military). One option we are exploring is Turnkey properties. We feel like it will help us get started in real estate, help us learn, get our feet wet etc. Any good Turnkey companies you can recommend? Any good areas? Any advice? Thanks for you inputs! Looking forward to starting this adventure.

[James Wise]

Originally posted by @Leah McNell:

Hi all! My husband and I are itching to get into real estate, but currently live overseas (military). One option we are exploring is Turnkey properties. We feel like it will help us get started in real estate, help us learn, get our feet wet etc. Any good Turnkey companies you can recommend? Any good areas? Any advice? Thanks for you inputs! Looking forward to starting this adventure.

 Basically the Midwest is where you want to go. Ohio, Indianapolis, Missouri, Alabama, Pennsylvania etc....Irrelevant of which specific market you choose some best practices you should utilize are as follows...

• Don't buy in the roughest neighborhood in the urban core. Pick a solid B-Class suburban area. Perhaps a nice 1950's built bungalow.
• Always hire a 3rd party property inspector to give you an unbiased feel for the home. The reports are 40-90 pages long and go through the entire house in great detail.
• Get an appraisal. If your using financing the bank requires this. This is good. The bank isn't going to let you blow their money. They have more skin in the game then you do.
• Make sure you get clear title. If using a lender this is a non issue. They will make you do this. It's those maniacs that buy homes cash via quit claim deed off of craigslist that really get screwed.
• Make sure your property manager is a licensed real estate brokerage.
• Understand you can not eliminate all risk, only mitigate it. If you are risk adverse real estate, (especially out of state) is not for you.