Turnkey in Indianapolis through RTR case study

[Doris Jin Huang]

Wanted to share a case study of our recent purchase in Indianapolis through Rent to Retirement, hoping this is helpful for those who are looking into this company or turnkey investment in general. The property is a single family home located in a B/C neighborhood. 

Purchase price: $142,000 

Conventional loan 20% down

Rent: $1225

Property tax: $1076

Insurance: $520

Management fee: 8%

With the assumption of 6% repair and maintenance, 5% vacancy, 6% capex, it will net us $268/month, reflecting a 9.8% cash on cash ROI.

We closed it over a month ago and just received our first month rent. The process was smooth and all the parties involved (RTR, local turnkey provider, lender, PM company) are pretty responsive. The numbers provided by RTR are mostly accurate (the only thing is that their property tax number $829 was for owner-occupied which became $1076 since it's now a rental). So far there hasn't been any maintenance issues but of course too early to say. Overall it's a positive experience.

We have a few rentals in NY where we live but now shifting our focus out of state for obvious reasons. Our plan is to purchase more properties in Indianapolis, turnkey or fixer upper. Look forward to meeting more people in this market. Any comments, questions, suggestions welcomed.