All Forum Posts by: Todd Crippen

@Joe Scheffold, here are my favorite OOS markets:

1. Kansas City (somewhat bias ha)

2. Indianapolis

3. Memphis

4. Oklahoma City

5. Jacksonville

There are a few more good ones, but I have seen a lot of success for people in these markets. Each location has their pros and cons. First, I would audit your work/life to see how much time you're wanting to spend. If you are wanting to be a more hands off investor because of a busy life-style, picking a team that you trust can be more important than the market you choose, in my opinion.

@Andre Williams, I think the turnkey strategy can provide safe and consistent returns if done correctly with the right company. If you share what your target return looks like, I would be more than happy to share my perspective. Are you looking for:

1. Consistent returns over a long-term period (low-moderate risk in my opinion)

2. Up-front equity for a short-term holding period (BRRRR) (moderate-risky, in my opinion, especially if investing out of state)

Also, how much time are you wanting to spend on REI? In my opinion, the more time you have the less risky the #2 option can be, but if time is something of a concern, finding the right team could help you get started. Just thought I would share my perspective. Thanks for posting!

We are a turnkey provider in Kansas City, MO, and always appreciate the opportunity to share our perspective and meet new investors.

Turnkey Property Group is an experienced team of professionals based in Kansas City, MO. Our specialty is providing out of state investors with cash-flowing rental property with management conveniently in place. 

We have a passion for sharing the affordability of the Midwest market with our clients. The prices are low, the rents are high, and the demand for quality housing is plentiful. 

Our average prices range from $95,000 to $125,000, with rent right around 1%.

We hope you partner with us to provide you with and take of your investment property for years to come.

Turnkey Property Group

Your Passive Income Partner

@Garrett Diegel The list you are researching right now is very strong, but I would add Kansas City, MO to your list as well. Kansas City has a very strong rental market. Our metro is unusually large, has two professional sports teams, and is also benefited by an eclectic variety of industry.

To add to that, the affordability is extremely attractive. KC is one of the few markets able to provide B class property from $90k-$150k while being able to stay right around that 1% RTV. Feel free to reach out if you would like more detailed info. 

To reiterate what @Nick C. touched on: It is imperative to develop a trust with the company after deciding it is a good fit for your investment strategy. If they do not allow for 3rd party inspections it should be a red flag. Also, the appraisal would be a requirement from the bank if the property is being financed.

Turnkey is a solid option for people wanting to take advantage of markets with low property cost, high rent rates, and high rental demand. It is also the best option for investors wanting to take the passive route.

I would just make sure they have a standard approach to renovations, set policies, and quick response times. 

We are a turnkey provider in the Kansas City market. I have heard many good things about Memphis Invest in the Memphis market. Let me know if I can help out in any way.

We have had great success with the Kansas City market!

@Brian Ploszay, , I understand the hesitation when deciding whether or not to go the turnkey route, but I think there are a lot of factors that an investor needs to weigh during the decision making process. Turnkey investing is very dependent on the market the companies are located, level of involvement desired, policies of the companies, pricing, warranties, and whether they have in-house property management.

For example, the seasoned turnkey companies realize that their demand is driven by investors looking for a safe, consistent return. That means that the market needs to provide the opportunities for turnkey companies to price their properties based on the rent to value ratio, instead of relying on top market price, they are providing those properties below market value a lot of the time. If you can cash-flow $200-$350/month, with 20% down, that is a solid long-term investment.

Also, the turnkey option is the best way to go if you would like the benefits of owning rental property without being completely hands on. At our company we like our clients to be involved as much as they want to be with the expectation of trust in our expertise for certain operational factors.

Also, if the turnkey company has well-established policies in place for leasing, resident on-boarding, standardization of renovation approach (replacing capex items first and foremost), and property management, then they could be a good option for investors.

Also, look to see if they have warranties in place to cover the renovations they have completed on the property. This is a good way for turnkey companies to hold themselves accountable for their work. If they do not cover any of the items on the scopes of work completed, then it could mean the company does not focus on quality.

Also, it's my opinion that if the company provides in-house property management services, that is another way they hold themselves accountable. There are mixed reviews on whether this is a positive or a negative, but if the other factors have been met, this is another great sign you've found a company dedicated to providing a quality product and resident to manage.

Also, even though some of the prices look like there is a premium in price point, you have to find the value in the services being provided: Extensive research in the submarkets in their city, leasing services, value add to the property, and property management.

I hope this helps start the convincing process. Feel free to ask me any questions!

Newest inventory update from Turnkey Property Group. 2 year lease commitment at $1100/month in the hot Raytown sub-market.