This was my 2nd turnkey rental property I purchased out of state in the great city of Indianapolis. I purchased this house in April 2015 and I am really hooked on turnkey rentals now. I purchased this turnkey through a different turnkey provider in Indy. I originally wanted to purchase from the first turnkey providers in which I purchased the turnkey #1 from however the few properties they had available did not fit my criteria this time around. After sifting through another 20 or so turnkeys from multiple sources I finally found one that fit my criteria. The due diligence phase began again and after carefully researching the seller, neighborhood and property I submitted the offer.
This particular house had a newer roof only a few years old, new water heater, updated plumbing and electrical which all fit my criteria. What it did not have was an AC unit and had a really bad fence that needed to be replaced. The seller did not want to include this with the sale. This goes against my normal criteria however as long as you accommodate this in your numbers and include a future AC unit install in the numbers you should be okay to proceed. Assuming of course these new numbers still fit your ROI minimum. In this case it did so I was okay with proceeding.
The inspection came out with a few repairs in which the seller fixed and the appraisal came out right at purchase price. This particular turnkey provider would also be the property manager on this one and I decided it was a good idea to have two different property management teams working for me in Indianapolis. That way if one goes bad, ill have a backup to send my properties to.
Here are the actual numbers used and calculated for purchasing this turnkey rental investment.
Fast forward >> I wrote this in May 2015 so at this point, I’ve only had this property for one month as I closed on it in early April 2015. The first months rent was this month and I was paid on time. No repairs obviously because its so new. So far so good. Feel free to send me a message or comment below to ask me how this property is doing for me now.
If you are interested in purchasing a turnkey, make sure you read this Step By Step Guide.