Updated over 6 years ago on . Most recent reply
[Calc Review] Help me analyze this deal- It is a Turnkey Property
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Hi Nicole,
I think I was in the same boat as you not long ago. I am still relatively new to investing, but have acquired 2 rental properties over the past 8 months.
One of the concerns I had when looking at out of state investing in areas with potential for higher vacancies is the associated cost of getting the unit turned over. A monthly cash flow of $160 (under $2000/year) can erode quickly on turnover expenses. It might be worth asking the PM what typical turnover expenses you might expect to pay. I like to be very conservative with the proforma expenses and see if the deal is still sweet enough to pursue. Just something to consider.
With all that said, I do not invest out of state and instead work very hard to find deals in Hawaii. Best of luck to you!