Turnkey in Florida-- areas? Georgia?

Question

I'm looking for areas in Florida or Georgia that are good for turnkey rentals.   I'd also like to make sure that there are established providers in the area that I am settling on.   Prefer "B" neighborhoods in the 50-90k range that meet or surpass the 1 percent rule.  I know Jacksonville and Atlanta are decent but the home prices seem to be higher than a city like Memphis or Birmingham which means that I have less purchasing power.  If Jax or Atlanta, then how are the burb areas?  Are prices lower there and will the properties rent as well?  Any input is greatly appreciated.

Wyatt Payne · Answer

I've lived in Jacksonville a long time and have been a buy and hold investor here since early 2013.  Prices have certainly edged up over that time, but you can still find solid rental properties in the north and west sides of town that meet or surpass the 1% rule.  You can absolutely achieve those results if you are hands on and have the time and ability to find and purchase a distressed property, rehab it, and place a tenant in it.  If you are more of a passive investor willing to pay retail or above retail price that will likely be below the 1% rule, there are good, established turnkey providers here that have the systems in place to provide you with a hands-off investment.  If you are somewhere in between and are willing to take a little more risk and do a little more work for a higher return, there are properties for that as well.  I have six such cash flowing properties that I'm currently selling to provide capital for other projects.  Reach out to me if you'd like to discuss.

Sebastien Hitier · Answer

Indeed, @Jason Bradstreet, I found it hard to get 1% with the contacts I had in GA. I was more lucky in Florida to get 1.2%, but those are houses at 110k, so outside your target.

May I ask what is the reason for your price band? I would expect rental yield and tenant quality should be your criteria, and those would vary with price depending on location.

Memphis seems to be a great city too, with some solid providers. I had blogged about city choice here, and was a bit more for places like Charlotte than Birmingham given their secular demographic trend.

I may be missing something, so don't hesitate to share facts about where good turnkey providers with properties that make sense can be found, or PM me.

Dio Cheatam · Answer

There are excellent areas in the Atlanta suburb area to flip or flip and hold.  The market here is hot, especially in Gwinnett County which is northeast of the city.  Gwinnett County has the best school districts which is a major selling point for the typical buyer in this area.  REO homes will go for $110-$130 in the more desirable areas but have an ARV of around $170-$190 (commanding a $1,300-$1,500 rental tag).  The only problem is that they go very quickly and now the banks have the upperhand.  In other words an REO will be listed for $125 with an ARV of $185 in a great school district and swim/tennis community maybe 2250-2500 sq ft.  There will be an offer on this REO property in 1-2 days.  In 4-5 days the bank or lender has now received multiple offers because there are so many investors that recognize the property as a good deal.  The final offer will be all cash and for north of the original asking price by $5,000 to $10,000.

The other option which is more risky yet more lucrative will be a Gwinnett County Trustee auction which takes place the first Tuesday of the month.  Here you are getting the same property under the same circumstances but with less competition and for $75-$80,000.  Just make sure you do your due diligence on these as they may have liens, back taxes, or major repairs on the interior.  You cannot inspect these (but if the door is unlocked it's not breaking and entering.)

Hope this helps.  I'm a real estate flipper and project manager, so if there is anything I can help you with, let me know.

Good luck,

Dio Cheatam

Account Closed · Answer

@Jason Bradstreet

Ken Corsini is a turnkey provider in Atlanta. He talks about on his podcast The Deal Farm Podcast. I think he also partners with people if you want to be a little more hands on with the turnkey. I have really enjoyed his podcast. I think his company is Georgia Residential Partners.

Gary Kane · Answer

@Ralph C.

turnkey-reviews.com

Ralph C. · Answer

I checked the link for www.turnkeyreviews.com and no site?......

John Thedford · Answer

Before you jump in check @Jay Hinrichs website

www.turnkeyreviews.com

Lots of people refer to that site for unbiased info. I don't want to kill your idea, but there are quite a few threads on BP where buyers talked about very low returns. Your other option is to find a property you can purchase and hire a good PM company. That may be more work but might give a better return. Happy shopping:)

Jason Bradstreet · Answer

@Sebastian Hitler.   Looking at more moderate prices points so we can buy more props and get more bang for the buck.   Thank you all for the great responses.    I am open to all input and appreciate all of the comments.

Lisa Meeks · Answer

I am still a newbie, but from doing some market research, the properties on the northwest burbs of Atlanta don't follow the 1% rule. It's more like .8% rule. Plus, most decent homes seem to come with HOAs which make it a bit more difficult to clear a decent monthly cash flow. Oh, and in our county, if you purchase any property at the court house steps, you have to wait a year before you can gain physical control.

Just my two cents. I am looking forward to seeing other people's responses.

Turnkey in Florida-- areas? Georgia?

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