Best turnkey markets 2018

[Ana Barcellos]

Hi Everybody:

I am new to BiggerPockets and I was wondering if I could have your advice on which would be good markets for turnkey properties today. I've read some posts about places that used to be good a couple of years ago, but are not anymore. 

Many thanks! 

Ana Barcellos

[Christina Carey]

Amen to that, Chris. There are a few TK operators here in Dayton, but some are selling lipstick on a pig with a turnkey price tag. "Fully rehabbed" properties that I would be embarrassed to call turnkey in the condition at which they are being sold. It doesn't stop there - the advertised returns are based on proforma numbers so far from realistic, I don't know how they can sleep at night. Things like a 25% expense ratio for a single family house in a D neighborhood (the TK operator says it's a B though); blatantly false property tax numbers; unattainable rent rates ...

For those of you considering a TK purchase, a 20% expense-to-rent ratio is completely unrealistic for ANY single family rental around here, regardless of neighborhood class. 50% is more like it, give or take a little. It takes almost 30% just to cover taxes, insurance and management, let alone any maintenance, repairs, or capex expenses.

So many reasons why people should do their due diligence. Verify the information presented before making a purchase, instead of blindly believing promises of an easy ROI ... especially if you have no intention of visiting the area (also a bad idea). For a lot of the sales I'm seeing, the only easy returns are those the TK provider is seeing at closing.

Originally posted by @Chris Clothier:

Remember though, a great city may not have a high quality Turnkey company.  That is the key to your success.  The team you choose to work with will either make or break your investment.