Second Turnkey Property OOS

[Ryan Planchon]

Investment Info:

Single-family residence buy & hold investment in Memphis.

Purchase price: $73,000
Cash invested: $21,520

Contributors:
Stephanie Jones

Second Turnkey Property OOS. 3/1 SFH. Complete interior upgrade. All new mechanicals. Roof is about 5 years old. New exterior sewer line. Came tenanted.

What made you interested in investing in this type of deal?

I had to start making moves in real estate. It was the right time in our personal lives to have extra cash to invest. It just so happen to be along side of low interest rates and high demand. I went where the numbers made sense even with fair market value. I didn't have a lot of time to build the core 4 and risk a OOS rehab on the first properties. Will be starting to figure out the BRRRR strategy somewhere. I am continually taking in educational material and networking.

How did you find this deal and how did you negotiate it?

I worked with a Turnkey Company in Memphis, TN. They were a complete purchase, renovate and manage under one roof turnkey company.

How did you finance this deal?

Conventional Loan. 20% down, Purchased Points to get the rate to 2.99.

How did you add value to the deal?

It was a fully renovated property at purchase.

What was the outcome?

16.35% COC Return. $293.15 Cashflow.

Lessons learned? Challenges?

When going through the renovation process compare everything. Use the photos the company provides and compare it to the scope of work to make sure things line up. You can find clues in the pictures! Ask for confirmation of repairs even if the current proof is not sufficient. Keep asking questions because who ever you are working with could learn something too. If the person you are working with is open to just working hard and getting the right answers then you have found some good people!

Did you work with any real estate professionals (agents, lenders, etc.) that you'd recommend to others?

Stephanie Jones @ www.turnkeyinvest.com. Stephanie is awesome and goes above and beyond to make sure you get the answers you need. She is the boots on the ground in Memphis!