Turn key rental properties under 100k

[Matthew Smith]

Hello All, I have been hearing about rental properties in states like Tennessee, Arkansas, and Michigan that are remodeled and under 100k.  I've heard of some being in the 50-75k range.  They are being sold by agents/companies that buy them, flip them to an investor, then manage them.  Does anyone on here know of any of these groups that are doing this? Thank you in advance

[Sachin Amin]

I live in Columbus OH, and have invested in in different states like TN , MS, MD, OH etc.. I actually like Tennessee and actually drove there to check out Memphis Turnkey properties, REI nation , Mid south home buyers and met all of them -(in waiting list since 1 and half year for Midsouth) - they all are great companies - I am invested with Memphis turnkey properties at the moment(2 properties). 50-75k range is now little tricky but yes you can get if you are lucky. what I am finding out with turkey's as I learn day to day - if a property is making $250 per door cashflow after (mortgage + escrows) that's $3000 income on that unit. However - when your lease expires or the tenant moves out after 12 months - the cost to get the property rent ready is avg $1 or 1.50$ per sqft (900 sqft unit) or something I provided in example below- so that is around $1000 to $1500 in rent ready expense. so literally I am only making $1500 on a unit in TN.

also I forgot to mention - add in couple of maintenance calls @ $100 each (labor+parts) which will eat up your income further down. so on the paper I made only $1200/year cash flow on one of the units. not trying to discourage but no one gave me this detail picture(dollar to dollar) when I started out. (REI nation, Memphis turnkey they all have fancy spreadsheets with proformas - but on the ground when rubber meets the road is little different)


if I had put in  50k-75k in S&P 500 ETF I would have made 30%+ return :) just kidding - different factors, parameters are in play here and pro's and con's on both sides :-)... but bottom line is Turnkey's are I would say still ok "ish" not great per my learning so far. Investor need to be little aggressive when it comes to demand bang for a buck - I am diversified in Stocks, real estates, 401k - all over - and all I care about is who is making me rich and creating wealth for me :-)

I started my journey couple of years ago to try out and I have learned a lot from BP community , youtube video's ,local meet ups podcasts.. 

Rent ready example :

$150 - carpet clean

$200 - cleaning

$100 - yard clean up

$400 - paint touch up

$150 - misc repairs - HVAC filters, batteries, door stops, etc.

Happy Investing!!!!!