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. I actually just put another turnkey rental under contract last week and I am really excited about it.
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 #2 with Joey Noel
“I am a strong believer in “paying it forward. For this reason I developed a website to share experiences, knowledge, and tools for rookies around the nation. Check it out. Rookie Real Estate Investors” – Joey Noel
1. What led you to start buying turnkey rentals?
– My wife researched the idea and introduced it to me. The passive approach of using a turnkey provider seemed more convenient to us as we both have full time careers. We also liked the idea of having a “one stop shop for real estate” and keeping things simple.
2. When did you start buying turnkey properties?
– November 2014
3. How man turnkey houses do you own?
– 4 turnkey homes and 2 off MLS using the help of a turnkey provider.
4. Are you planning on buying more turnkeys?
– Yep! As many as I can.
5. What kind of returns are you getting on your turnkeys?
– Any where from 10-13% cap rates. The c class properties definitely perform better than the b class but come with a risk. I generally take home $175-$225 monthly on each property.
6. What cities are your turnkeys in and do you plan on venturing out to different cities?
– Indianapolis and Birmingham. The plan for now is to continue to expand in Birmingham and then perhaps move to an east coastal market to diversify geologically.
7. Are you happy with the PM that was provided with the turnkey?
– I recently fired 1 of my 2 property managers. He failed to get a mold issue fixed for me. Use my tenants damage deposit to cover her shortage in her rent for a month. Evicted her without telling us and was a horrible communicator in general. He also had low standards for tenants.
8. Have you had any bad experiences with any of your turnkeys? Either with the purchasing process or after?
– I had a provider back out on me just before closing because I asked him to fix some stuff that pooped up on the re-inspection that he said he already fixed. This same guy sold me a property with mold in it. I was inexperienced and missed it in the inspection. It was under warranty and when I discovered it he refused to fix it.
9. Do you have any advice for others looking to venture into out of state turnkeys?
– Watch out for the marketers presently themselves as a turnkey company. They can still help you but be aware that these relationships exist. The sell properties for the actual provider and make a commission
10. Overall, are you happy with the investment?
– I’m happy with 5 out of 6 of my investments. I recently changed PM’s for the bad one with hopes of turning it around.
This concludes the Interview. If you would like to contact Joey, see below: