Turnkey Providers with In-house property management

[Ria Gupta]

Hi, I am relatively new RE investor from Arizona and in the process of researching Turnkey providers to purchase SFH/MF (duplex, triplex, quadplex) for cash flow and appreciation. Are there any with in-house property management? The ones that I have looked at so far(RWN, Roofstock, Norada) don't seem to. Some of the markets I am considering include GA, NC, FL, TX. All suggestions, comments for turnkey providers and markets welcome. Thank you

[Mike D'Arrigo]

@Ria Gupta Ask yourself if in house property management is that important and why. In principle it sounds good but isn't always best. We've done it in house but now use 3rd party management. We found that it is extremely difficult to be the best at everything. It's hard to be great at finding good properties, doing good rehabs and providing excellent management. We've chosen to turn the management over to well vetted 3rd parties that are true experts at management and that is their whole business. The main argument for in house is that they will do a better job because the turn key company controls them but that argument doesn't really hold with a 3rd party PM that is well vetted and screened. That PM is often managing hundreds of properties for a turn key company. Often times, the majority of their doors come from the turn key company so they are significant motivation to do a good job. A turn key company that does a signifcant volume will have have a lot of control over their PM. There is no guarantee that an in house PM will do a better job. In fact, I know of a small turn key company that was doing in house management. They got over extended and started robbing Peter to pay Paul by using renters deposits to keep things going. Property management is a key part of your success and personally, I think you want to have the best management regardless of whether it is in house or 3rd pary.