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Updated almost 7 years ago,
Turnkey properties that meet the 1% rule?
I'm looking into buying my first rental property, and I'm thinking of using a turnkey provider due to me investing from out of state. I'm looking at some properties at Pinnacle Investment Properties, and they have several that meet or exceed the 1% rule - for example, a 3 bed, 1.5 bath at $76,900 that rents for $825/month (and several others in that range). Their calculations show, however, that this property (when financed) would cash flow just $192/month, and that's with estimating just 5%/month for vacancy, and 5%/month for maintenance in a C class neighborhood in Indianapolis. Is that a reasonable amount for a property around the $75k value mark? I suppose the math on a non-turnkey home of that value would work out the same, assuming it also met the 1% rule - that $192/month just seems a little low to me, and not necessarily conservative enough of an estimate.
As a side note, does anyone have experience working with Pinnacle Investment Properties or Mike D'Arrigo? He's been very helpful & responsive on this site, but I wonder what someone who's bought properties with him would have to say.