my advice to youif you want decent returns, have cash to invest, but dn't want the headache is to do private lending...if you want the 'glory' of owning propeties, then partner up with someone in the areas you're interested and take a percentage of cash flow and equity...you'll get a much better deal, even after giving your new parter his/her split....this partner will acualy have an ownership interest in the property versus the mananges who will just make more money off of you every time there's a repair or a vacanty bc they'll ge applications,and probably half of first month's rent...there's plenty of competent people on BP who could buy the rental you need, get it rehabbed and rented for probably less than half of what you'd pay with these turn key companies

not only do the cashflow numbers not make sense in my opinion, but they're also selling the properties at or above retail...get an appraiser to check out the property you're considering from them....trust me...the property they sold on allegheny st, it looks like they were asking 75k...i bought a rental a block from that house in the same neighborhood for 19k this year, same size and style home too...does it still sound like a good deal? if you're interested in the charlotte market, PM me and i'll be glad to help and get you in touch with a good real estate agent or answer any questions you may have about the area and neighborhoods...

Maybe Bill because you are a lender, but as an investor with Sky, I have been disappointed often. He continues to overpromise and under deliver. The promise of seeing the rents the 25th of the month has become regularly the 15th of the following month, and for 6 of the 20 months I've been an owner for his property management company I have barely covered my mortgages (4 in total that I invested in with Sky based on the promises), so I have a very different view of his integrity and words kept.

Yes, I have been in touch with the company and they seem to run a tight ship. Are they priced a little over market? Maybe, but you need to take into account the service they are providing, and who they are targeting. This is a full turnkey operation, from rehabbing, finding tenants, and managing. If you come from California, or other expensive States, the numbers are attractive, and if all you want is passive income, it's better than bonds, and relatively risk free. There are a few companies tapping into this market due to a lack on fixed income opportunities available in securities, that many baby-boomers are dependent on. My approach has been to look for established turn key operations, and then use a buyers broker to do the leg work and advise. Sure you can buy foreclosures, and rehab yourself creating bigger margins, if you have the experience. But not recommended if you live hundreds of miles away. I'm looking at other operations in DFW, and Las Vegas and will see how it goes, and then invest more, or disinvest according to results. SFH iro $100k with cap rates of 7-8% seems to be were it's at. Before anyone jumps on those figures, this is not about getting rich and making lots of money. It's for those who have their pile, and want an income. For anyone interested in RetireonRentals or any other turn key operation, I strongly advise doing lot's of due diligence, jumping on a plane to visit, and using a buyers broker.

John, You're absolutely right that this can be done. I see you're in Cinci, a market similar to mine and I'm guessing you've put in a lot of dirt time in the field making this work, hands on. For guys like you and I and some others here, this statement is absolutely true. For some other, some of my friends included, this is not true at all. They buy some of the biggest money-pit crap properties I've ever seen. Stuff you could only rent after razing the building and rebuilding new. Some other guys (and ladies, not trying to be sexist here) just make too much cash at their other business and don't have time to put in the ground time here to make it happen. It all depends on the type of person really.

Chris, What do you mean by "Makes too much sense?" Turn-key properties are usually over-priced from my experience. They buy the distressed property, rehab it to rentable condition, mark up the price, then sell it to an investor. You could make more money if you went through the whole process yourself.

Here's where I've looked at turnkey operations before. I'm in Illinois and have 12 properties. But its getting so incredibly difficult to get any more financing right now in this state, that I'm constantly looking at other states that have better financing available. Basically, I'm at the point where I want to keep growing but am running into a pretty high wall here where I live. The turnkey stuff is clearly a bit overpriced than if you could do the deal yourself. And the numbers haven't really made sense to me just yet. I actually wouldn't mind paying 10k more if it means the difference in getting more properties at $300 a month net cash flow as opposed to $350 to $375 a month. But most of these places seem to want to get you in at 80 to 90 of market value which is ridiculous given that the actual sales that are occurring are probably at that number. Again, if these turn key places were any good, they would be getting their deals at 60-65% of market and selling them to me at 70-75% so I could do a quick refi - rate and term and be all in with nothing down except some closing costs (2 or 3k). They could make their profit on the 10% plus the rehab work (their GC fee), plus the property management fees going forward. MemphisInvest, Norada, and Real Wealth Network all seem to be doing the turnkey stuff. A really smart GC could make a killing if they were to partner up with a property management firm and a couple of local banks and do this right.

I achieve a lot better returns here in California than they seem to be offering. I have seen similar operations in a couple different cities and I am generally against them. Who do you think gets the best renters in operations like this? 1. The properties they own. 2. Their biggest clients. 3. You? If you're paying cash, the returns aren't as hot... 8% using their proforma, 5.5% using the 50% rule. You might as well invest in California... you could probably beat their returns if you shop right. Now buying in the same neighborhood for 19k and getting $800/mo in rent like Bryan did, is maybe a different story.

I bought from Sky Mikesell and Retire on Rentals and would not recommend him. They provided me with an appraisal of 110K on a property, I got in thick with them with deposits and purchase agreements and when I financed, the bank provided an appraisal of 84K. So buyer beware, his pockets got fatter and it was downhill from there - under-provided/unclear improvements and eventual tenant eviction proce$$. At least I own the property but I learned a good lesson in the process.

Just a quick comment on Sky Mikesell and Retire On Rentals - Run for your life! I am still working through the mess he created.

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Updated over 9 years ago, 05/05/2015

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Joe StrickleyPoster

Santa Barbara, CA

General Real Estate Investing

Retire-on-Rentals?

Joe StrickleyPoster

Santa Barbara, CA

Posted September 01, 2010 09:27

Has anyone had any dealings with this company? They are based in Charlotte, SC and rehab SFH, find tenants and sell them on together with the leases, and continue to manage them. The homes are generally in the +/- $100k price range, and rents offer a reasonable ROI. I'm guessing appreciation won't be big, but as a hassle-free toe-dipper investment, the risk seems negligible given the small amount invested. I'm sure there's lot's of downsides, but has anyone used them, or any companies offering similar services?

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