Turnkey Markets 2019

[Will O'Meara]

I am interested in my first turnkey property and have been trying to narrow down some of the best markets for 2019.  I like the look of the Nashville market for long term stability and potential appreciation but am wondering if this markets single family homes cash flow as well as other markets?  Can anyone weigh in on recent experiences in Nashville or general thoughts on some other cities to conciser? 

[James Wise]

Originally posted by @Will O'Meara:

I am interested in my first turnkey property and have been trying to narrow down some of the best markets for 2019.  I like the look of the Nashville market for long term stability and potential appreciation but am wondering if this markets single family homes cash flow as well as other markets?  Can anyone weigh in on recent experiences in Nashville or general thoughts on some other cities to conciser? 

 The most popular turnkey markets are

• Cleveland
• Toledo
• KC
• Indy
• Memphis

I only operate in Cleveland so I can only speak to Cleveland. There are a lot of out of state folks that come here for the cash flow but sometimes they get a little loose with it & invest in some highly sketchy areas. We've got a lot of blight around town so you want to make sure you know what you are getting yourself into when you invest here. Give The Ultimate Guide to Grading Cleveland Neighborhoods a read if you decide to investigate this market further.

Another thing to note when looking at the individual markets, you can make or loose money in any market. Don't think that one particular out of state market will shoot you to success or abject failure. It's not really that complicated to buy out of state. It only becomes complicated when investors try to over complicate or over think everything. Whenever you are buying a property out of state you should do a few things to ensure it's as smooth as possible.

• Don't buy in the roughest neighborhood in the urban core. Pick a solid B-Class suburban area. Perhaps a nice 1950's built bungalow.
• Always hire a 3rd party property inspector to give you an unbiased feel for the home. The reports are 40-90 pages long and go through the entire house in great detail.
• Get an appraisal. If your using financing the bank requires this. This is good. The bank isn't going to let you blow their money. They have more skin in the game then you do.
• Make sure you get clear title. If using a lender this is a non issue. They will make you do this. It's those maniacs that buy homes cash via quit claim deed off of craigslist that really get screwed.
• Make sure your property manager is a licensed real estate brokerage.
• Understand you can not eliminate all risk, only mitigate it. If you are risk adverse real estate, (especially out of state) is not for you.