I purchased this turnkey rental in December 2014. This was the first out of state investment I have ever bought. Making the decision to purchase out of state was a big deal for me and not having anyone to show me the ropes during this process did not help. I’ve read horror stories about purchasing turnkey rentals as well as good ones and I wanted to be sure I would fall on the right side of the track.
I went above and beyond during my due diligence phase to where I felt comfortable enough to proceed with this property. I had reviewed at least 30 different turnkey properties from 4 different turnkey sellers and this one was the only one that fit my criteria. I am very picky about choosing an out of state property to invest in and I need to make sure I stick with it otherwise it could jeopardize my plan. Not being picky about an out of state rental could be disastrous and result in negative cash flow. This is why I grill the heck out of a turnkey provider before I proceed with them.
After confirming projected numbers and carefully selecting who I would work with on this I went under contract. The house was a fresh rehab, all new mechanicals, fresh paint, new floors and carpet which is exactly what I was looking for as this is part of my criteria. The inspection had a few minor repairs in which the turnkey provider fixed all of them. The appraisal came out a little more then purchase price which was a great and rare bonus. The turnkey provider also gave me final approval on the tenants who they screened themselves as they would end up being my new property manager for this particular house.
Here are the actual numbers and calculations I used for purchasing this house. As you can see, this one was a home run!! The returns on this one after inputting all the correct numbers far exceeded what I thought I could get on a turnkey investment.
Fast forward >> Although I’ve only had this property for about 6 months (wrote this in May 2015) it has been a cash cow. Rent is paid within the first week every month and I have had zero repairs on it to date. Which is expected as the house had a fresh rehab. If you want to know how this property is doing for me now. Feel free to ask in a comment below or shoot me a message.
This turnkey rental is in the great city of Indianpolis. If you want to see why I chose Indianapolis to invest in, click here.
My second turnkey property is also in Indianapolis. It is not as good as this one but still very solid.
If you are interested in purchasing a turnkey, make sure you read this Step By Step Guide.
**Update June 2015** Turnkey #3 is now in the books.
To read about my trip to Indianapolis that I took prior to purchasing turnkey #1, click here.
What do you think? Good purchase?