1950/60 built but remodeled turnkey houses

[Kenny Kim]

Hi Group, quick question.. when you are shopping rental properties, do you really care about the age of the house as long as it gives good cashflow/yield ? what is your thoughts on old houses built in 1950/60 but remodeled like new? It seems there are lots of turn-key houses with decent cashflow out there... what do you think? anything I need to avoid with these houses?

Thanks in advance!

[Scott Lundgren]

@Kenny Kim Age of the home isn't as important as the condition of the home. Some Turnkey Providers rehab correctly and look at all major components so you don't have any Capital Expenditures (CapEX) for a pre-determined amount of time. These should be items like Roof, HVAC, Plumbing, Electrical, major appliances, ect. Our goal is to have a minimum of 10 years before any CapEx hits, obviously with any investment this can vary, but you should find a Turnkey Provider that pays attention to that in their rehabs. Maintenance and Vacancy are two other areas to pay attention to, industry standard is 5% on these, you want to find a company that is below the industry standard.