Survey for out-of-state turnkey investors

[Jon S.]

Hey all. I would like to ask those of you who have invested in out-of-state turnkeys several questions.  

1. How many out of state turnkeys have you purchased?

2. Do you still own these properties or were any sold?

3. How involved are you with the management of the property?

4. What kind of cap rate, COC, ROI are you getting?

5. Was the estimated rent, cap rate, ROI that was advertised close to what you are actually getting?

6. Overall, are you happy with the investment?

7. Which turnkey companies would you recommend or warn against?

8. If tenants were already in place, how long did they last and what caliber tenant were they?

9. Were you satisfied with the PM that came with the deal?  

10.  Do you have any advice for others looking to venture into out of state turnkeys?

*** NOTE ***

If you are employed by, owner of, or affiliated with a turnkey company PLEASE DO NOT REPLY. 

[Chad W.]

Well, let me get this party started for you Jon. 

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1. How many out of state turnkeys have you purchased?: Two

2. Do you still own these properties or were any sold?: Yes, still own. 

3. How involved are you with the management of the property?: Not directly, each is managed by a separate PM company. 

4. What kind of cap rate, COC, ROI are you getting?: It's negative to the point that I am not even tracking it right now.

5. Was the estimated rent, cap rate, ROI that was advertised close to what you are actually getting?: uhhh, no...

6. Overall, are you happy with the investment?: I will be, eventually. Right now each property has a mortgage which makes breaking even hard with vacancies and repairs. Once those are gone, they will be less stressful. At least I bought low.

7. Which turnkey companies would you recommend or warn against?: I have no comment here, it was my choice to buy the homes and honestly they are what they were advertised as. I am more disappointed in the property management side of both homes.

8. If tenants were already in place, how long did they last and what caliber tenant were they? One was in place, the other came on board shortly after purchase. I will say this, both properties were purchased in May of 2012 and neither has had a tenant in place for more than 6 months at a time. Several have been one or two payments and out. I have also had a 7 month vacancy on one of the properties and there was very little communication at all from the PM during that time. 

9. Were you satisfied with the PM that came with the deal?No. Both companies are horrible at returning calls and e-mails, neither seems to put any effort into managing or using propertyware software correctly. The companies are Marathon Property Management in Memphis and Premier Property Management, also in Memphis. 

10. Do you have any advice for others looking to venture into out of state turnkeys?: Yeah, go ahead, just throw the traditional estimates for vacancy and repairs out the window and double them. If I had to do it over again, I would buy one "A" class home instead of two B/C homes. Buy with cash, do not borrow.