Turnkey Properties Out Of State

[Andy Ramdeen]

Hey everyone , I’m doing some research on turn key properties, and just have some questions .

What’s your take on turnkey properties?

Why would you want to do it in another state ?

Would you travel to the state your investing in ?

How to pick the right company to handle all your day to day activities?

What’s kind of fees are standard ?

How do you know if it’s a good deal ?

P.S : the reason why I want to do turnkey is because it will require me to do less work as I do work a full time job . Also I’m not looking to spend a lot of money . Plus doing turnkey rentals in other states are cheaper so I figured why not start with that ? Anyways I would like to get everyone opinions . And you can always contact me to tell me your experience

[Mike D'Arrigo]

Originally posted by @Alyssa Dyer:

What’s your take on turnkey properties? 

A property doesn't have to be fully rehabbed or turnkey to still cash flow great and to not be a headache. So I wouldn't limit yourself to only fully rehabbed properties if that's what you mean by turn key. 

Alyssa, I agree that a property doesn't have to be fully rehabbed to cash flow well, but you really have to look at the long term IRR. A non rehabbed property may perform ok in the beginning until deferred maintenance and CAP EX starts catching up. Another factor to consider is that homes that are rehabbed to higher standards rent faster, can often times command a higher rent and tenants stay longer, which all make a big difference in returns.