Turnkey Investing-5 years later

[Robert Motch]

I currently own out of state properties that I purchased in rent ready condition and have a team to manage the properties and manage any repair/rehab needed on the properties. I am considering purchasing turnkey properties to diversify into other markets. 

I am curious what peoples' long-term experiences have been with their turnkey investments.

Do you still own the properties?

How long did the original tenants stay?

Are you still using the original property management company?

Do your properties continue to rent fairly easily?

How much time are you spending on your properties?

How long was it before the properties started needing repairs?

How has your turnkey experience compared to finding properties, hiring a property manager and managing the property manager?

Thanks everyone!

[Hank Keller]

@Robert Motch - Going on 5 years with my rentals... here's a few Rules of Thumb...

- my average tenancy is 2 years and with my Indy properties i expect to pay $1500/year to do a turn
- in the right market, with the right property management company doing good screening, they should re-rent  quickly (days to a week)
- even with my turnkeys, i spend 30 mins - 1.5 hours per month per property reviewing the numbers, asking questions and ensuring my targets are being met.
- just like my local, non turnkey rentals, some units have had little maintenance, others I've had to spend a couple thousand on. Again, just like my non TK rentals, I have a few that havent required maintenance and some that needed small things within 6-9 months.
- my property management company does a great job and I'm learning how to improve my local units from the experience.

Talk to many and you'll get a lot of different experiences. Visit the market, meet the team and do your due diligence.
Hank