Turnkey Rental Process

[Ceasar Rosas]

Hey BP members!

I am looking for some advice on Turnkey Rentals. I have 2 single family rentals and 1 fix and flip that we currently have on the market. I have been considering more and more to possibly take the leap and start a turnkey business. The type of deals that I'd be focusing on would be single families. An example of the numbers on these homes that I've worked with are as follows:

Purchase Price:  25,000

Closing Costs:      5,000

Rehab:                25,000

Holding Costs:      3,000

Total:                   58,000

ARV:                    85,000 (Sale)

Average Profit:   25,000

Now this type of deal would generate about $1300 per month in rental income.

Out of that $1300 an investor can expect to pay:

Taxes:           400

Insurance:      50

Property Management (We'd collect this fee) 10%:   130 

Cap Ex 5%:    65

Repairs 5%:    65

Vacancy 8%:  104

These single family rentals we have the tenants pay for all utilities, landscaping, sewer, trash, etc... So out of 1300 your total for debt service is $486

Debt Service should be about $305 Leaving a pure cashflow amount of $181.

The question is does this sound like a good turnkey investment? Let me know if I'm missing something.