My market area has a number of turnkey rental providers. Over the last few years I talked with a number of long-distance investors who've been taken advantage of by some unscrupulous or simply incompetent turnkey companies.

While some just needed to find a better property manager or a reliable contractor, others have paid a lot of money for a house that was never actually rehabbed, never tenanted, and should never have even been considered as a potential rental house given the awful, abandoned neighborhood in which it sits. Often, even for performing properties, the returns are nowhere near the fluffed-up numbers quoted by the turnkey company (no vacancy/maintenance expenses or reserves).

Recently I came across the webinar linked below which does a good job of getting a potential turnkey investor up to speed on how to make an investment they won't quickly regret. Disclaimer: I don't have any tie to Vena Jones-Cox, the investor/"guru" (she doesn't like that term applied to her) who produced the webinar. I don't sell turnkeys. There's nothing being pitched in the webinar. I just think it's good advice that hopefully will keep someone from getting burned.

Webinar description from Vena Jones-Cox:

"Every time I hear a turnkey rental buyer complain
the their investment hasn't worked out the way they
hoped it would, I think to myself, "It's too bad you
didn't know how to evaluate that property and the
deal BEFORE you got into a mess that's going to
be expensive and stressful to get out of."

So this week, we'll talk about:

The various turnkey rental "deals"--buying for cash, buying with financing, the sale/leaseback, and being and equity partner, and the pros and cons of each
How to analyze a pro-forma on a turnkey rental to get to the REAL return, not the stated return, which is rarely realistic
Speaking of which, what a reasonable return on a quality turnkey rental actually is, and how the neighborhood affects what you should expect to get
How to do real due diligence on things like property value and condition despite being miles or even states away from the property"

http://www.regoddess.com/pages/passiveinvestment/passiveinvestmentseriesweek2.php

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