Is anyone buying turnkey properties in Davenport?

[Meghan McCallum]

Hey BP,

I was wondering if there was a market of people looking to buy turnkey properties or a small or large portfolio of them? For you turnkey purchasers, I was hoping you could tell me more about your buying strategies are, ex. What CoC you look for, price range, rental range, or any other numbers you have earmarked for your investment system.

Thanks!!! 

Meghan

[Matt Holmer]

@Meghan McCallum

I've purchased 1 turn key property here in Davenport.  I also have two properties that I self manage.  For me, a local turn key company that offers a complete rehab makes sense for me.  I work 60 + hours a week, so I will not be doing the rehab myself.  However, since it is local, I can be very choosey with the areas I invest in and can monitor the rehab closely.

The group I have been using offers two options.  1) Truly turnkey with tenant already in place.  2) They will wholesale an investor the property, handle the rehab and then place and tenant and manage the property.  

The benefit of the first model is there is immediate cash flow and conventional financing (20-25% down).  However, you should expect to pay retail.  With the second model, it will be 3-4 months until a tenant is placed, but you buy at a discount (all cash).  With my last property there was $10,000 in equity (just finished the refi yesterday) after the renovations.

I think there is a market for turnkey properties in this area.  However, due to the age of the  majority of homes in the area, they rehab has to be on point.