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Updated over 3 years ago,
Turnkey Success Story
Hey y'all ;) I wanted to share my first success story here that relates to turnkey investments. I had a lot of trouble finding positive posts about turnkey investment and thought I will share this here.
For some background, I have been investing in CA and decided to branch out this year into Florida (Jacksonville). I'm not a full-time investor (I wish!) but have a pretty busy C-level exec job in a start-up. Nevertheless, I wanted to invest more and was super excited to try the BRRRR strategy.
When I started out in January this year with "out of state" investments and wanted to find an opportunity to do a BRRRR I realized that there is no way I can combine my busy job with the time investment needed to successfully apply this strategy. Despite of having built an amazing team in Jacksonville, it was still not realistic for me.
Hence I looked into turnkey investments. My first thought was to go on the websites of turnkey providers and see if I can find anything that would work with my numbers and it was far from that, so I told my realtor that I want to find a turnkey property with my specific numbers. Aaaaand I did ;) Here are the details:
- asking $109k USD
- purchase price: $88k USD
- downpayment 20%
- rented out for $1300 thanks to my amazing Property Manager @Elenis Camargo
- monthly P&I $322 (3.65% interest)
- monthly cash flow: $550
- ROI (CoC) 23,5%
- REO 37%
While it was not as complicated as a BRRRR, this deal was not uncomplicated, I have a ton of respect for everyone who is doing BRRRR. I ran into issues like a huge delay in financing (COVID related) and almost lost this deal, someone broke into my property right after I closed, a new AC broke down and the story goes on. Definitely got my feet wet with this one.
But nevertheless, I'm hoping to be able to repeat this and while I have to put in more money than in a BRRRR deal, I believe that it is an amazing strategy for investors who can't devote the time needed to be successful with the "less money down" strategies.