All Forum Posts by: Tom V.

I'm curious if there is anyone out there who has owned Turn Key properties longer than 5 years?

The turn key approach sounds interesting, but most of the information I can find is relatively recent. People posting how great their Turn Key properties are, and how great the cash flow is, but they've been into them less than a year or two. I'm looking for information on the long term viability of buying turn key properties (10+ years). 

It seems like most of the properties advertised on various turn key websites appear to be in declining neighborhoods. Sure, the house you buy has been rehabbed, but most of the neighboring houses have not. You're basically buying the most expensive house on the block. Am I wrong?

Is there anyone out there who has owned turn key properties for more than 5 years? Please share your experiences if you would. Thanks.

@Rick Mapes

I also lived in Iowa City, in the Johnson St apartment row. Although it was not required of me when I lived there 18 years ago, I've heard it is relatively common now to require students to have a co-signer on the lease, usually the parents. That way, even if the kids trash the place there is a "grown up" on the hook for the costs.

@Julie Macd

Thank you for providing such a detailed post describing your experiences. Very helpful.

The last post on this thread was 4 months ago. Any new updates to share about your turn key experience?

@Rohan J.

I think your forum question was featured in the most recent BP podcast for the fire round. Feel free to check it out.

https://www.biggerpockets.com/renewsblog/bp-podcas...

Just wondering what the typical protocol is for this situation, and how the RE agent gets paid.

Flat fee? Percentage of sale price?

I have a great RE agent who is also an investor. I found the properties myself, but since I'm a newbie I'd like to utilize her expertise in the buying process. I'm going to contact my agent about it shortly, but just wanted to ask the smart people here first so I have an idea what to expect.

Thanks in advance for any advice you can provide.

@Wes Shaw Congrats on getting that first rental property. Awesome.

I think the one thing you might have overlooked is pre-screening. Basically, you ask them some questions about their situation and tell them your screening criteria BEFORE you even bother with setting up a showing with them. This way you're not wasting your time doing showings to people who won't qualify in the first place.

You can do that in person over the phone, or send them the questionnaire by email, or your ad could send them to a web form to fill out the questionnaire first before you even talk to them.

BP also has a really good guide for screening tenants here. Check it out if you haven't already.

https://www.biggerpockets.com/renewsblog/2013/01/2...

Good luck to you!

Single member LLC is a disregarded entity as far as the IRS is concerned. It would be pointless for tax purposes.

You're asking if it's ok if you break the agreement you signed with the lender. Would you be ok if a tenant did something that was outside of the lease agreement, if you wouldn't find out about it?

Are there any wholesalers in the Sioux City, Iowa area? Contact me, add me to your buyer list.

Let's connect. Thanks.

I would do exactly as your first impulse suggested, 50% down on a few good B+ homes. If you decide later that you want to borrow more, you can always pull that equity back out with a refinance.

BUT, before doing anything at all, I would park that money in a savings account dedicate a few months to educating yourself on buy and hold real estate investing (if you haven't already). A pile of cash can be a dangerous thing if you don't know what you're doing.

Good luck!