Turn key

[Thomas Pierce]

I have come across some turnkey rentals in buffalo and western new york. I am from NYC and am a good 9 hours away. these companies claim to have fully turnkey rentals in a stable market. i am in the beginning stages of researching this company. Has anyone done any deals like this or has anyone heard anything. Your input is greatly appreciated. The site i was referring to is; http://www.cashflowwithequity.com/

p.s do they manage them completely, if i did purchase i did not want to drive or fly to buffalo for any reason.

Thanks again

[Jon Holdman]

I grabbed the first property off their web site, 101 Rounds. Its priced at $53,900. Realtor.com shows 46 duplexes in the same zip code. Of those, 10 are priced at $53,900 or more. The rest are less. Half are in the $25K to $40K range. So any claims of "equity" seem like a stretch to me.

This particular house was purchased on 12/9/10 for $7000. Now, I'm sure its been fixed up and is worth more than that now.

They claim $500/month/unit in rent, which makes this a good deal. However, you need to verify that really is the market rent and that there is demand.

That alone is a very good reason NOT to buy there or anywhere you don't want to go. If you're unwilling to get in the car or on a plane and go have a look at what you're buying, don't buy it.