Beginning analysis turnkey

[Hezekiah Butler]

I have come across several turnkey properties, and in my ongoing efforts to learn and educate myself I am hoping to find some guidance in what would typically be the next step in analysis, based on the information I have.  The following are the details available:

• Bed/Bath #
• Sq. Ft.
• Current rent/month
• Lease end date
• Routine maintenance cost for 2018
• Annual taxes for 2018
• Sales price

What questions, concerns, and analysis  would you recommend determining for someone going through this.  True newbie, assume I know nothing, which I know nothing.  What formulas/spreadsheets would you recommend utilizing to ensure a good deal is somewhere in here. 

My goal is to consume knowledge.  

May be too big a question for a single post.  

[Mike Roy]

I would make sure I knew the market cold before making a purchase.  Investors buy markets as much as they buy an individual property.  You want to understand whether there are demand drivers in the market that are positive for rentals.  You also want to understand vacancy rates; desirability of specific neighborhoods; and whether there is a path of progress you can get in front of.  

Remember that, with turnkey, you are paying a premium for the convenience.  Ideally, you would want to know the returns on comparable deals if you found them yourself so that you can attempt to measure that premium and determine if it's worth the price.