All Forum Posts by: Larry Fried

There are some good turnkey companies out there, but in today's markets it is unrealistic to buy turnkey "w/ great numbers."  So, lower your sights to more moderate returns, and focus on working with a reliable and trustworthy company. 

 Of those, doing turnkey in that range, I think your best choice would be Dayton area, at this time.  Just make sure you pick the right team to work with and vet thoroughly.

Short answer: It doesn't. Turnkey and value add investing are two different paths of REI.

Leah, I have started my OOS investing with turnkeys back in 2012. My advice on purchase is to avoid SFR that are less than $850 to $900 in rent. I prefer $1000 and above myself. That means your $60-80k range is probably too low in todays markets. Maybe $80k and above. What markets are you considering?

@Shoshana Shulman  Well in the example you gave you would be making an appreciation play, and almost certainly going negative on cash flow.  However, I think the principal you laid out of focusing on better neighborhoods/houses is a good one.  @Bryan Blankenship gives a better example of a buy that could actually still have decent cash flow.

Well like anything in REI you have to evaluate the syndicator and the particular deal. Stress test: what are they doing to mitigate risk during a downturn? One reason, I like deals that don't use leverage and have the flexibility to weather a storm in the economy.

@Leah N. I have experience investing with JWB going back to 2012.  I have seen a lot of appreciation i the homes I bought years ago from them, but today's rent to price ratios buying with them or any turnkey company in JAX for that matter, make it very difficult to truly cash flow significantly on homes they are selling today. Plus the rehabs seem to be in lower quality neighborhoods (C-/D?) On the new construction homes, its more likely they'll appreciate, but cash flow will almost certainly be close to zero in the near term.  They run a very professional PM service (with some caveats), and I have been mostly happy with them over most of the time I was with them.  In the last year or so, that changed for me and I switched my homes to another management firm.  I'd be happy to elaborate further if you want, just DM me.

Some of both. You can DM me for specific info. In the case of RWN, are you looking to buy individual SFR or invest in syndications?

I've done this at least twice in the last few years.  Now there is a online marketplace specifically established to do this while minimizing the impact on the tenants. Roofstock

If you are looking for passive REI, turnkey buy and holds is not the only way to go. In my blog article Three Key Routes for Passive Real Estate Investing I compare turnkey and a couple of other more passive choices that you might find of interest.