Long term track record of Turn Key properties?

[Tom V.]

I'm curious if there is anyone out there who has owned Turn Key properties longer than 5 years?

The turn key approach sounds interesting, but most of the information I can find is relatively recent. People posting how great their Turn Key properties are, and how great the cash flow is, but they've been into them less than a year or two. I'm looking for information on the long term viability of buying turn key properties (10+ years). 

It seems like most of the properties advertised on various turn key websites appear to be in declining neighborhoods. Sure, the house you buy has been rehabbed, but most of the neighboring houses have not. You're basically buying the most expensive house on the block. Am I wrong?

Is there anyone out there who has owned turn key properties for more than 5 years? Please share your experiences if you would. Thanks.

[John Chapman]

Tom, I don't have turnkeys, but I have been a landlord for almost 9 years. I can tell you from experience you are asking the correct questions. You can make any SFR investment perform for a few years (even 5 years), but eventually cap ex and quality of neighborhood catch up to you and require significant injections of capital. If you're pouring money into an asset that has not gone up in value, this can be a very bitter pill. (Yes, you can underwrite cap ex into your projections, but very rarely do I see this done in any manner that is even remotely accurate.) For the life of me, I cannot figure out how you make money in the long run in a flat or declining neighborhood unless you are on the ground, buying killer deals, and managing them well yourself.