For all you wanting to invest in turnkey rental properties, I have created Turnkey Interviews. In these interviews, I pose 10 great questions to actual investors who have and/or are currently buying turnkey rentals.
I post a lot about my own turnkey experiences and also want for you to get some valuable information from others as well who are doing the same thing. I strongly feel that investing with turnkeys is a great way to reach financial freedom if done properly. My plan to retire early will greatly be dependent on the passive income I make from rental properties.
If you have purchased a turnkey rental property and would like to be interviewed. Please contact me and we can coordinate it. Thanks so much. I really think us turnkey buyers need to stick together and share as much as we can from each other in order to have the best chances to succeed.
Turnkey Interview #5 with Anton Ivanov
Anton Ivanov is a software engineer, entrepreneur and real estate investor with 6 rentals in San Diego, Atlanta and Birmingham. He is the creator of DealCheck, a powerful mobile app for quickly analyzing rental properties, which you can download free for iOS and Android.
Note from Alexander: I downloaded his rental app for my android and must admit I was very impressed with it. I am in the process of buying a turnkey right now in Kansas City so I had a rental to put in and it spit out all the same numbers I have on my spreadsheet. This tool is a great way to get your numbers on the go. Way to go Anton! Cool app my friend! You guys should download it and check it out.
And here is the Q&A from Anton:
1. What led you to start buying turnkey rentals?
– I live in San Diego, where the real estate prices tend to be very high and the cap rates and cash flow on rental properties very low. This makes it very hard to find local buy & hold deals that are attractive to me.
Because of that, I decided to start investing out of state in other parts of the US. I chose the turn-key model, as I didn’t have enough local contacts to conduct rehab jobs myself.
2. When did you start buying turnkey properties?
– I bought my first turn-key property earlier this year. (2015)
3. How man turnkey houses do you own?
– I currently own 3 turn-key rentals in Atlanta, GA and Birmingham, AL.
4. Are you planning on buying more turnkeys?
– I plan to continue expanding my portfolio at a rate of 4-6 properties a year to reach my goal of 50 rental units in the next 9 years. I will continue buying turn-key properties when it makes sense, but it’s likely that not all of my future acquisitions will be turn-keys.
5. What kind of returns are you getting on your turnkeys?
– The rental in Atlanta has a current cap rate of 7.1%. The two rentals in Birmingham both have a cap rate of about 8.7%.
6. What cities are your turnkeys in and do you plan on venturing out to different cities?
– The turn-key properties that I bought so far are in Atlanta and Birmingham. I will most likely invest in other cities in the future as well to diversify my real estate portfolio.
7. Are you happy with the PM that was provided with the turnkey?
– For the most part – yes. I still find myself playing a rather active role in management decisions, but I tend to do that with all of my properties regardless if they are turn-keys or not.
8. Have you had any bad experiences with any of your turnkeys? Either with the purchasing process or after?
– I had to evict the tenant that originally came with the turn-key rental I bought in Atlanta. I don’t necessarily blame the seller or the PM, as bad tenants can happen to anyone in any market. The purchasing process for all my acquisitions so far has been very smooth.
9. Do you have any advice for others looking to venture into out of state turnkeys?
– My biggest piece of advice is to treat turn-key acquisitions just like any other property purchase. I see far too many people believe that buying turn-keys is a simpler and more hassle-free process. It’s definitely not.
Just like with any property purchase, you need to be very diligent and selective when picking the market, the neighborhood and the property, as well as the people you do business with. Not every turn-key rental is a good deal and not all turn-key providers have the same standards when it comes to doing rehabs.
But if you do thorough research and play an active role at every step in the acquisition and management process, turn-keys can be a great investment.
10. Overall, are you happy with the investment?
– Absolutely. My experience with buying turn-keys has been very good and pretty much inline with what I expected before I started.
This concludes the interview.