Turn Key - Market Analysis

[Matt Ray]

Hello All, Does anybody have advice or a good place to start with market analysis for turn key investments? I see a lot of forum posts looking specifically for providers in Kansas, Philly, Chicago, Ohio, etc; but, I would like to start with understanding the various pros and cons of each market before deciding where to invest initially primarily from a cash flow vs equity standpoint. 

Thanks, Matt

[Alex Craig]

@Matt Ray, I disagree with @Lane Kawaoka.  I was in Knoxville, TN opening up a Gus's Fried Chicken last weekend (shamless plug to Knoxville, BP'ers.....go eat there, you will love it, 3101 Sutherland Ave). I saw fantastic returns there and can't wait to buy there. I will be making an offer on $40,000 home that will rent for $950.  Likely will need 20k in rehab. Point is, this is not a TK town, but the cash flows are great.  There are markets all over the country there and I mention this because I always suggest trying to find cash flow close to your home if you feel up for the challenge of doing on your own.  I own and offer properties in Little Rock (really, I promise not a shameless plug, just trying to make a point) and the returns there are excellent.  That being said, we have clients who love being in Memphis because of the reasons why so many people invest here and pass on Little Rock because they think everyone in Arkansas marries their cousin (I was born there, so I can say this, but actually it is illegal there and legal in Alabama. Have you seen a Alabama Crimson Tide fan?).  Then we have a lot of investors who love LR as they are a big fish in a little pond (pond is really not that small as metro area is over 800,000).

Point of this silly post is that there are great teams in these markets and all these markets are working for hundreds of people. But don't focus too much on market.  Focus on the best team as you can find cash flow all over the country.  A bad team in a good market will be a loss every time.