Specialist · Independence, MO · Member since 2016 · 66 posts · 9 votes
Just curious, Who has rental properties in kansas city and do you prefer using a turnkey provider or agent to purchase from and finding a property management company. Please share any provider you recommend, Whats the pros and cons from experienced landlords, Agents or Turnkey providers? and Why??
Walnut Creek, CA · Member since 2015 · 3k+ posts · 2k+ votes
8y
Time is money, if you don't have the time you go the TK route. They're generic deals that look best on paper and you're likely pay a premium for it, but it'll still cashflow. "Everything" is taken care of for you typically expect funding and in theory you'd have little upkeep on a fresh remodel.
Now, if you have the time you can learn the area.... and hunt the deals. If you get a good agent and have a decent understanding of an area you can fine tune your searches and really hone in on a "good" deal. This might mean better quality property, better tenants, better schools, or maybe just cheaper price. If you go agent route you're going to need a team in place or at least people you trust to get referrals. All this happens on the fly and houses that are good deals there's lot of competition so you have to be ready to execute. Ideally you'd have a PM already in place otherwise you need to find one once you get the house and they all have different requirements to manage your property.
If you do your due diligence you cut down the risk of getting a bad house and poor performing investment.... you shouldn't assume anyone but yourself is going to do it for you. Trust, but verify.
Walnut Creek, CA · Member since 2015 · 3k+ posts · 2k+ votes
8y
Time is money, if you don't have the time you go the TK route. They're generic deals that look best on paper and you're likely pay a premium for it, but it'll still cashflow. "Everything" is taken care of for you typically expect funding and in theory you'd have little upkeep on a fresh remodel.
Now, if you have the time you can learn the area.... and hunt the deals. If you get a good agent and have a decent understanding of an area you can fine tune your searches and really hone in on a "good" deal. This might mean better quality property, better tenants, better schools, or maybe just cheaper price. If you go agent route you're going to need a team in place or at least people you trust to get referrals. All this happens on the fly and houses that are good deals there's lot of competition so you have to be ready to execute. Ideally you'd have a PM already in place otherwise you need to find one once you get the house and they all have different requirements to manage your property.
If you do your due diligence you cut down the risk of getting a bad house and poor performing investment.... you shouldn't assume anyone but yourself is going to do it for you. Trust, but verify.
Rental Property Investor · Atlanta, GA · Member since 2017 · 126 posts · 110 votes
8y
@Ron Quinn, check out the podcast episode 257 (last week's) if you have not already. Mid-episode, they discuss turnkey providers. @Matt K. hit the nail on the head: if time is your major issue but you have lots of $$$, turnkey might make sense. But if you have the time to do everything yourself, it can be a lot more lucrative (albeit more work) because you aren't giving the turnkey provider a cut of the margin to do everything for you.
Investor · Northern, VA · Member since 2016 · 1k+ posts · 904 votes
8y
I haven't listened to podcast yet. I will in next couple of days. But I don't think just time and money should be taken into account when deciding whether to go TK route or not. There is another angle to it and that's "distance". I work full time. 45-50 hrs (when taken into account times I have to work extra due to demands at work). I have free time since I am not married (whew !!!) or have kids. Also I live in the DC Metro area. There are no cash flow properties out here. Much better yields are found in Midwest. I am sure people in SoCal, NY, NJ or any other big city can relate.
Now, I do have some time to go and meet TK providers and look at the properties myself, but I don't have the kind of time to put together a team of realtors, contractors, property managers, lenders, title companies about a 1000 miles from where I live. Might as well quit my job and move there, if that's what I want to do. Now if this were in my backyard, I could probably do it.
I haven't listened to podcast yet. I will in next couple of days. But I don't think just time and money should be taken into account when deciding whether to go TK route or not. There is another angle to it and that's "distance". I work full time. 45-50 hrs (when taken into account times I have to work extra due to demands at work). I have free time since I am not married (whew !!!) or have kids. Also I live in the DC Metro area. There are no cash flow properties out here. Much better yields are found in Midwest. I am sure people in SoCal, NY, NJ or any other big city can relate.
Now, I do have some time to go and meet TK providers and look at the properties myself, but I don't have the kind of time to put together a team of realtors, contractors, property managers, lenders, title companies about a 1000 miles from where I live. Might as well quit my job and move there, if that's what I want to do. Now if this were in my backyard, I could probably do it.
You can get referrals for that team, much the same way you get a referral for the TK company. I found that when I was doing my due diligence it took up the same time as if I was to source my own deal. I also had a different idea of what I wanted in a property vs what a TK provides.
For what it's worth, I did a 1031, put together a deal, and found a PM while doing grad school and working full time. Then had a kid and took a break, then got a real team together and just closed on a duplex. The most time consuming part was searching for the deal.... the rest was a breeze. I could of just let the realtors find me a deal, but I was already looking on MLS.... Oh and this deal didn't require any rehab....
Referrals are a fantastic thing.... and saved me in the beginning when I was just starting out in a OOS market.
Rental Property Investor · Honolulu, HAWAII (HI) · Member since 2011 · 4k+ posts · 2k+ votes
8y
I have not used them but I hear a lot of my investor friends is using USREE. Of course I would be we more concerned with how you negotiate the inspections than to just assume they are good providers.
Realtor · Kansas City, MO · Member since 2014 · 148 posts · 40 votes
8y
Turn-key providers you are always going to pay top dollar. If you want to make more money, the key is in finding a strong team, starting with your contractor and ending with your property management. And at the end of the day, there are no guarantees with turn-key providers either.