Turnkey and Market Diversification

[Andrew Coulter]

I have been noticing that it seems like the majority of Turnkey investors tend to stay in the same market as opposed to diversifying with other markets. As a newbie I am curious as to why more experienced buy and hold Turnkey investors are choosing to do this. Is it based on relationships, simplicity, market knowledge? Also, does anyone choose to tap into different markets as a “test” or way to evaluate Turnkey providers, property managers and the overall market of a certain location?

A bit off topic but how responsive are Turnkey companies usually? I have called and messaged two now but they have not called back or responded. It has been a few days now. Thanks!

[Jonathan Oh]

@Andrew Coulter
Probably because they have gotten familiar with the market and have built contacts they can rely on. Diversification is good, but don't think that 10 properties in 10 different markets is better than 10 properties in one market. I would prefer the latter because you have one property manager to worry about. Also, if you just have 1 property, you are low priority to the PM. Losing 1 property under management isn't a big deal. Losing 10 is a different story. Hope this helps.