Thoughts on using Home Union or Roofstock for Turnkey Investing

[Simran Singh]

Hello BiggerPocketers :-), I am very new to the world of real estate investing (Just bought my 1st home as primary residence and that's what opened up my eyes to the world of RE investing). I am excited! I am based in the Bay Area and am looking to buy rental properties (open to other states where, it seems, the cashflow is much better than CA). I read about hot rental markets such as Atlanta, Dallas, NC, TX, FL, Birmingham, Kansas City, Sacramento/Roseville, East Bay etc? and then ended up on this article on 'Turnkey Investing' and how some companies such as roofstock or homeunion are helping Out of State investors find properties, refab, rent them and help with property management etc.

Any thoughts on using these companies? Are they legit and worth it? I don't mind shelling a small % to them, if in the grand scheme of things, I get a good property in a nice location whose value appreciates, have a decent cashflow on the rent and the property managers are good and I get good tenants. I am leaning towards exploring this option. So, any advice/pitfalls to be aware of would be appreciated. If not using homeunion or roofstock, are there any other local companies you'd recommend in these markets OR is DIY from finding property to PMing yourself etc. my only option?

[AJ Singh]

@Simran Singh

Find the city to invest in first and then look for a provider. You can easily find an investor focused realtor and property management companies will be referred as well. Don't think that turnkey is the only route available..And your choice of neighborhood is where the focus should be.. There are certain areas in very cash flow city where the turnkey providers are super active for a reason.. Market comps don't support the turnkey prices. If your property does not perform, you will have a major loss in exiting the property. Focus on B neighborhoods initially and when expanding, then you can choose C class neighborhoods as well