Turn Key Horror Stories

[Paul E Romero]

I live in California and like most Californians it's extremely expensive to invest here so I've been looking at out of state turn key properties. But I have read numerous stories of how investors got ripped off. My question is, shouldn't you fly over and see the property for yourself!? Isn't the plane ticket, food, hotel and rental car a write off? How do people get ripped off?

[Lynnette E.]

Originally posted by @Paul E Romero:

I live in California and like most Californians it's extremely expensive to invest here so I've been looking at out of state turn key properties. But I have read numerous stories of how investors got ripped off. My question is, shouldn't you fly over and see the property for yourself!? Isn't the plane ticket, food, hotel and rental car a write off? How do people get ripped off?

You can look at it, it does not mean you comprehend what you see. 

You buy in a terrible neighborhood and no matter how fast you repair things they will be recycled by the thugs in the neighborhood and your house will never have HVAC.  

You overpay for the area, after all its a house for just $30k?

You trust your new 'team' on the ground.

You have no idea how to manage a property with the low quality tenants.

You buy in an area no PM will manage,

You hire a PM that takes what little money is paid for rent for expenses or fees.

What can not go wrong?