I haven't invested with MI or REI nation but I have spoken with them and looked at a few deals. Generally i thought they were a good company with sounds principles.
i think some monkey calculations are going down there to make it sound like these are worthless investments lynnette. Before buying a turnkey or any deal we should look at the cashflow after setting aside repair and vacancy contingency. And long term cap ex. That money should have been accumulating in an account to pay for turn over (vacancy + repair allowances). And HVAC should have come from repair or cap-ex. These expenses are foreseeable and should have been included in the original pro forma. If with these contingencies included the math says you cashflow and get your desire ROI then great. This back calculation of $45/month seems like applying all expenses to a turn over in one year while he had it rented for 2 years.
That being said I see REI and other turn keys advertising cashflow without adequate allowances for vacancy, repairs and cap ex. as investors it is our responsibility to run our own numbers.
poor luck with bad renters though @mike. Getting stiffed 2 months rent sucks. I'd say stick with it and hope you getting better renters next time round. Push REI nation to get you good tenants.
which state is the house in and couldn't you have evicted with no rent the first month?
