Turnkey or go it alone

[Brian Christensen]

I live in a hot market (Utah) where deals are more difficult to find. Turnkey has appealed to me because of the time issue and the long distance investing uncertainty. I would love opinions for a newby. In a turnkey market I can buy 2-3 homes (>80K ea). I have a sample of a turnkey here.

[Jay Hinrichs]

Originally posted by @Jeff Schechter:

I am not sure how/why a turnkey company is making assumptions of both future appreciation , and increased rents .  I would suggest doing your due diligence  based on how  the property is performing right now  ... assuming it is rented.

We are up to nearly four hundred doors in Indy ...  Happy to answer any questions about this Market ... Just PM me .

 Jeff this is keeping up with the Jones turn key marketing profroma's  they pretty much all make those assumptions.. its up to the investor to do due diligence and see if they agree that rents will increase year over year or your going to have a consistent straight line up appreciation factor no matter how little it is..  to me most turn key mid west stuff does not perform like that.  You want to run on actuals just like anyone buying a MF  and looking at T 12 or T24  not forward. Now in true MF not just duplex 4 plex.. there are certainly situations were rents can be moved up with refurbishment and improvements its the basis of most syndicated deals. 

Investors tend to focus on bottom line so if they see a 20% IRR they just assume its a 20% return deal but they really wont know until they own 5 or more years been through 2 to 3 turnovers and see if there is any market to resell them to create the IRR return.. in the mean time its just a cash on cash with a tiny bit of depreciation since these are so inexpensive you get some but its not really significant in my mind. its about parking money and letting the tenant pay for your home.. if you get money on top of that that's the icing on the cake.. Its all about getting those suckers paid for.. those that make bank in low end rentals do so because of no debt.