Hi, I'm new to real estate investing.

I have a full time job and interested in OOS turnkey rentals.

Curious how you're supposed to cash flow positively, yet alone a goal of $100-200 per door. The #s that providers calculate, makes it seem unfeasible. Please help me understand if $100-$200 per door is an unrealistic expectation for investing in out of state turnkey rentals. Thanks!

Consider the following example:

-turnkey in the midwest selling for $70k

-rent is approx. $800/mo. (1.15% vs 2% rule)

-PM is approx.10%

-mortgage is approx. $250/mo. @ 4% (30% of rent)

Even if you want to cash flow just $150 a door, that would be 20% of rent, leaving 40% of rent for everything else (100%-10%-30%-20%=40%)

40% of $800 or $320, is then what needs to be left at a minimum for monthly 1) property tax, 2) insurance, 3) vacancy, 4) maintenance, 5) capex, 6) tenant replacement, 7) tenant renewal and 8) lawn maintenance costs. $320 for all these categories just doesn't seem feasible on a monthly basis.

Therefore, I think it's safe to say that it's either your cash flow that declines (e.g., <$100/mo.) or you hope there's months with little to no 3) vacancy, 4) maintenance, 5) capex, 6) tenant replacement, and 7) tenant renewal costs, which would be foolish. Please help me consider viable options to invest in turnkey rentals out of state. I feel this is an example you see often with turn keys. Thanks again!