turnkey company/property management company rehab my property?

Question

I would like to purchase a property out of state (preference Indiana, Ohio). How to find a trusted turnkey company/property management company that would do the rehab of my property and also manage it?

Surbhi Anand · Answer

Thanks @Alora Glaze, @Brandon Sturgill, @Remington Lyman for your kind advise, Greatly appreciate it.

Dave Poeppelmeier · Answer

Hi Surbhi, I guess there's a lot of questions to unpack here: Do you currently own property? Have you worked with Property Management before? You need to know what to look for in a PM company: Do they have their own service staff or are they subcontracting everything out? Do they answer the phone? Do they have a website for tenants/owners/etc? What are you willing to pay? Are they actually licensed or is it just a Realtor/Investor saying "Hey, I'll manage your property!!!" If you're interested in Toledo OH, let me know and I can tell you more about the area and how PM works.

Aj Parikh · Answer

@Surbhi Anand You won't be able to get rehab quotes without a contractor looking at the properties and the contractors will only be able to look at them if there is a realtor who can work with the contractors. So you should try to connect with a realtor in the area first. Because I didn't want to figure out the core four in the area, I decided to go with turnkey. You will end up paying more on the list price but you will be assured of a good product and good cash flow

Aj Parikh · Answer

@Surbhi Anand Ohio is certainly a good market to invest for turnkeys. I recently purchased a turnkey property in Cleveland, OH with Martel Turnkey and would definitely recommend them for out of state investing. They were very transparent in their renovation process, their lender was able to get a good interest rate and the property management is top notch. Let me know if you are interested in knowing more about the purchase process.

Steve Donovan · Answer

Hello @Surbhi Anand. I agree with many others weighing in on this thread that trusting that rehab is done properly while you are located far away is a risky proposition. Far better in my view is to buy a fully rehabbed property and either manage it yourself of find a local property manager who can look over your investment property. Make sure you check references, and contact other clients that are located remotely to determine if the communication and follow up is adequate. I'd be happy to help you with properties in Wisconsin if you are interested. We sell fully rehabbed properties that are already leased to high quality tenants to our investors. All the best to you in your investing future!

Dave Poeppelmeier · Answer

It all depends on what you want to do. If you want true turnkey, you're going to pay for it, and for the love of God fly out to see it. I'm trying to get a client of mine out from under being sold a "turnkey" in a D class neighborhood that's been nothing but problems. So spend the money on a plane ticket, have them show you different parts of town that you have discussed previously and then make a decision. Otherwise, a good Property Management company can also point you in the right direction with Realtors to purchase the property, resources to improve it if needed, and to manage it for you. You just really have to do your homework of you're investing from afar.

Surbhi Anand · Answer

Thank you so much @Dave Poeppelmeier, @Evan Polaski, @Aj Parikh, @Remington Lyman, @Brandon Sturgill. I greatly appreciate your kind response. I would like to get in touch with each of you . My current situation is that I have seen a few properties online in Indiana and Ohio, but they would require some rehab. Now, Im not sure how to go about doing this first purchase? Should i get some rehab quotes from turnkey/property mgmt companies first before purchasing a property? Or should i first purchase a property and then find a company to get it rehab? I would greatly appreciate your advise

Brandon Sturgill · Answer

Ahhh...come on @Alora Glaze I only did 12 renovations last year on managed properties ;) But you're right...most PM's are not GC's or capable of drafting a scope of work and project managing a renovation. @Surbhi Anand Why turnkey? You can buy a renovated property with a great agent and manage through your PM. I will say, be very aware of the location you are investing. The best property management companies do not work in the bad parts of town.

Remington Lyman · Answer

You should get with a local Realtor in Ohio that specializes in working with investors. They will be able to refer you to some.

Evan Polaski · Answer

@Surbhi Anand, most turnkey operators that I see have preferred management companies lined up for you. Beyond that, do you own a property already? My understanding of turnkey operators is that they find, buy, rehab and secure tenant. Once that is done, they sell to the investor with tenant and management in place.I say that because in this scenario, you don't need to rehab the property. The turnkey company has done that before you buy it.