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Updated over 6 years ago on . Most recent reply

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75
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Whitney Breedlove
  • Clear Lake, TX
29
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75
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Turnkey Rental Companies

Whitney Breedlove
  • Clear Lake, TX
Posted

Can anybody recommend a turnkey rental property company that takes into account all expenses in their cash flow analysis (capex, maintenance, vacancy, property management)? The companies I've talked advertise cash flow figures that don't take these expenses into their analysis which I find misleading. 

Most Popular Reply

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538
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Bryan Blankenship
  • Investor
  • Cincinnati, OH
431
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538
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Bryan Blankenship
  • Investor
  • Cincinnati, OH
Replied

We do, every single time. Any company that doesn't is intentionally leaving those things out to make the ROI look better (obviously).

It's why our returns may appear lower on paper, but they are also REAL WORLD and battle-tested across many years.

Further, since we only focus on A/B class properties in Ohio and not the ghetto D class junkers, that will affect the published ROI as well. But what we know from a ton of experience and empirical data....any 15 CAP in Ohio will end up being 100% fake right after that first trashy tenant destroys your building and causes $8K in repairs which wipes out 2 years of your "15 CAP" ROI.

We've seen it happen to unsuspecting investors waaaaay too many times to count, and it's why we focus only on A/B class properties in great areas, good schools, thriving markets, etc.

As you'd expect, none of our A/B class tenants have ever caused $8K in damages ever, so a realistic 7-10 CAP rate actually proves itself across the years with no hype and no BS.

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