Rental Property Number 15 is Under Contract (Turn-Key)

I set a goal at the beginning of the year to buy 7 rental properties in 2015. I was able to buy two rentals right away (numbers 12 and 13) and get a third under contract as well. I was able to get rental property number 14 under contract on March and it still has not closed three months later. I will discuss what is going on with that property and rental property number 15, which is under contract as well and should be a much smoother transaction.

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An update on my real estate goals for 2015

Here is an article I wrote at the start of the year that detailed my goals for 2015. Below are the major goals I made for 2015 and how I am doing so far.

1. Flip ten houses. I flipped 12 houses in 2014 am on pace to flip many more than ten houses. I wanted to flip fewer houses this year, because of the capital and time it takes up. Instead of flipping houses I wanted to wholesale more, but that is not going quite as planned. I did wholesale one property so far this year and I made almost $20,000 on that deal. It is tough to wholesale and takes a lot of time dealing with buyers, most of whom are tire kickers. I hired one of my contractors to be a full-time rehab manager, which will free up my time and quicken up the repair process. Instead of wholesaling to fix my house buying addiction, I decided to improve my flipping process.

2. Buy seven rental properties. I already discussed buying rental property number 12 and rental property number 13. Rental property number 14 should close soon and 15 is under contract. This puts me right on pace or slightly ahead to buy seven properties this year.

3. Sell 200 houses on my real estate team. My real estate team is doing awesome. A couple of my agents who are very new to the business have been making a ton of money, which in turn makes me money. However we are no where close to our goal of 200 houses. Colorado has the highest appreciating market in the country and there is no inventory. My production comes from HUD and REO properties and there are virtually none, because our market is doing well. Luckily the dollar amount of the houses we are selling has gone up and my team is picking up my slack. Even though we many not sell 200 houses, we might make just as much money with the higher sales amounts. I also added a new team member last month and he is doing great already as well.

4. Invest Four More goals.

  • 300,000 views a month by the end of 2015. I hit 270,000 views in May so I should blow this out of the water.
  • Implement a new real estate agent success system. I introduced the Six Figure Real Estate Agent Success System earlier this year and it is doing great. (if you are interested in the system, shoot me an email and I might be able to get you a discount;
  • Borrow private money through the blog in 2015. I have not done this yet, but I did get a line of credit on my personal house, which lets me put less cash into the flipping business. 
  • Improve or create a new forum. We created a brand new forum where people can discuss anything and it is going great as well. A lot of really good questions and I try to respond to everyone.

Overall I have been doing very well with my goals. I realize now that they may not have been challenging enough at the start of the year.

Here is a great article on setting goals and why they are so important.

What is going on with rental property number 14?

When I got rental property number 14 under contract it was a traditional sale, but I could tell the seller was motivated. The house was a mess and they wanted a very quick closing. I got the home under contract and then we found out the city had $15,000 in liens against the property for code violations and water bills. The seller could not pay those liens off so we had to change the transaction to a short sale. This home was listed on the MLS so I am not worried about short sale fraud.

After months of waiting the bank did give us a price they would approve the short sale for, which is more than I had it under contract for. I decided to pay more, because I feel the house is still a great deal. This deal was supposed to close a couple of weeks ago and it keeps getting delayed by the bank. We were supposed to close today, that turned into later this week and we will see when we actually close on it. I will make sure to shoot a video and give all the details once I buy it!

My resources page has links to all my rental properties.

What is rental property number 15 and how am I buying it?

Rental property number 15 should be the easiest transaction that I have done. It is a turn-key rental property in Cleveland, Ohio and will take no work from me (at least that is the plan). I have been thinking about buying a turn-key rental property for sometime, because I wanted to see how the process went and to see if the turn-key companies live up to their promises. I know I will not make as much money from a turn-key as I would my other rentals, but I am okay with because of the following.

  • Turn-key would take no repairs and be rented right away
  • Turn-key would be bought with my IRA and anything is better than the stock market for me.
  • Since I am buying out of my IRA it would not affect my ability to buy local rentals or my plan to purchase 100 properties.
  • I have met the turn-key company I am using multiple times and even visited Ohio to check out some of their properties.
  • I refer turn-key companies to people and if I buy one myself than I am putting my money where my mouth is.

The property I have under contract is a 1997 two-story, with 3 bedrooms, 3 bathrooms and is $45,000. The home is rented for $800 a month now, but I have been told it should rent for $900 in the current market. I verified the rent with Rent Range and they came in right at $900 a month as well. Zillow came in at $1,000 a month, but I don’t trust them as much. Here are the numbers from the turn-key company:

Rent: $800

Taxes: $1,107 (yearly)

Insurance: $600 (yearly)

Management: $768 (yearly)

Vacancies and maintenance  $960 (yearly)

NET ROI: 13.7% based on cash purchase

What will I be watching for when owning the turn-key property?

I am curious to see how many things go with the turn-key purchase.

1. Will the vacancies and maintenance match their estimates? I see similar numbers on my rentals, but my rentals are more expensive. The turn-key company claims the houses are repaired and all major systems should last ten years or more.

2. Will the rents be on track for what the turn-key company claims? This is always a huge question mark, but my research seems to point towards the rent estimates being accurate. If the rents are higher it will have even better returns.

3. How will the property management company perform? The turn-key company says they have worked with their property management companies for years and trained them exactly how to do business. They get a discount from the property managers in lieu of giving them a lot of business.

Here is a great article on how the process works when buying a turn-key rental property.

How hard was it to buy a turn-key property with my IRA?

It took me a lot of time to finally decide to buy a turn-key rental property. When I realized I could use my IRA to buy a turn-key property that was the turning point. I contacted a couple of self-direct IRA companies and ended up using UdirectIRA. It took them about a week to get my account set up and transferred from my regular IRA. The turn-key company helped me choose the right property and I signed all the docs about a week after setting up my IRA. The turn-key company already has the house rented, it is managed and they even take care of the home owners insurance.

The process was very simply up to this point and now I wait for the IRA company to sign off on everything since technically my IRA is buying the house and not me.


So far it has been another great year and my goals are mostly on track. I have made some big changes in my business and I keep buying properties even though are market is crazy hot right now. I will be sure to write about the turn-key process and how it goes as well as my new rental properties.


  1. Jeff September 25, 2016
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  2. Jared Miller September 23, 2016
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  3. Matthew Ferguson September 11, 2016
  4. Russell September 5, 2016
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  5. Mike August 12, 2016
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  6. Fred Weiller July 31, 2016
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  7. Dominic May 11, 2016
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  8. Serena May 11, 2016
  9. Ees Nat April 25, 2016
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  10. Lorie Kluth March 9, 2016
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  11. Julie February 26, 2016
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  12. Matt Fox February 4, 2016
  13. Brandon January 30, 2016
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  14. Nancy November 20, 2015
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  15. Akash September 22, 2015
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  16. Saravanan Ramasamy July 28, 2015
  17. Eric July 27, 2015
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  18. Eric July 23, 2015
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  19. Daria July 23, 2015
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  20. Alexis Bester July 14, 2015
  21. Jumar McCain July 9, 2015
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  22. jonathan posell July 7, 2015
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  23. Amy Van Ollefen July 7, 2015
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  24. Arun July 5, 2015
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  25. Adam July 4, 2015
  26. Thomas July 2, 2015
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  27. Alyssa July 2, 2015
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  28. Yolanda July 1, 2015
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  29. Steve July 1, 2015
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  30. Kunaal June 30, 2015
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  31. Ryan June 30, 2015
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      • Sid July 2, 2015
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  32. Richard June 30, 2015
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  33. Aleena Joseph June 30, 2015
  34. Michael Ding June 30, 2015
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  35. Aaron June 29, 2015
  36. Spencer Cooney June 29, 2015
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      • Julie July 25, 2015

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