Expensive market? Busy with a career and other priorities? There are a lot of compelling reasons to consider turnkey investing in a more affordable area – where a local "operator" sells you a tenanted property designed to pump out cashflow from day one.
All you have to do is "turn the key," hand things off to a property manager and... voilà! You're rich. You can now kick back and sip margaritas on the beach. Right?
Well, it's a little more complicated... as you'll learn today from seasoned turnkey investors Whitney Hutten and Lance Robinson. Both have bought rental properties from turnkey operators in several different markets, and they tell us all about the highs and lows, reveal what they wish they would have known, and offer candid advice for anyone considering this niche.
When you're done with this show, you'll know the exact questions savvy investors ask prospective turnkey providers about neighborhoods, construction warranties, property management contracts, and how operators handle evictions and major repairs. You'll also know how to handle a home inspection to ensure you know exactly what you're getting into!
Look – there are a lot of turnkey operators active on the BiggerPockets forums. A lot of them are great teachers, too. But this episode is told from the investor/customer's perspective... and it's well worth a listen – or two!
In This Episode We Cover:
- What turnkey investing is
- Doing due diligence to find a trusted turnkey operator
- Why it's always worth flying out to walk the property before purchasing
- Hiring your own home inspector!
- Whitney and Lance's turnkey winners and losers
- Managing your property manager
- Handling an eviction
- The role of cash reserves when buying turnkey properties
- The "BRRRR-key" business model
- And SO much more!
Links from the Show
- Real Estate Rookie Facebook Group
- Felipe's Instagram
- Ashley's Instagram
- BiggerPockets Podcast
- Quickbooks
- BiggerPockets Calculators
- David Greene
- Turnkey Reviews
- BiggerPockets
- BiggerPockets Forums
- Appfolio
- Buildium
- Zillow
- Apartments.com
- FEMA
- Deal Check
- Stessa
- Quickbooks
Check the full show notes here: http://biggerpockets.com/rookie29
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