Frequently Asked Questions

Preliminary Questions

What should I look for in a turnkey provider?

A company with in depth knowledge of and experience in construction, renovation, and single family real estate investments.

What are the risks associated with buying a rental property?

Your tenant damages the property

Although the tenant is responsible for all damage, it’s impossible to ensure recovery of the cost if the tenant damages the property.

Vacancy

While demand for these properties is high now we cannot guarantee high demand always.  But due to the low carrying costs, vacancy is unlikely to have a huge impact on you.

Market conditions to sell

Although our ideal client will hold their property for 15 plus years, markets can change and there is no guarantee of a future sale price.

Non paying tenants

In the event of a non paying tenant, the property manager will serve a notice and typically evict the tenant within 45 days.

What are the red flags when choosing a turnkey provider?

  • They’re closing on a property simultaneously or they do not yet own the property they’re trying to sell you.
  • Their main focus is sales and marketing and not construction, renovation, sustainability and doing what’s best for their clients.
  • They don’t provide you with pictures of the property you’re purchasing.
  • They manage their own properties and don’t rely on a licensed third party. This can lead to conflicts of interest between what’s best for them and what’s best for you.

Learn More About the NE Ohio Market

Why should I invest in rental property in Northeast Ohio?

High Price to Rent Ratios

In the Northeast Ohio area we’re able to buy houses that, once renovated, produce high rents relative to the low purchase price. Because of the low prices we buy at, combined with the high rents our properties produce, our investors earn very attractive returns.

High Demand for Quality Rentals

Residents in the Cleveland, Akron, Youngstown area love our properties and the demand for our properties is exceptionally high. For example, many of our properties receive multiple rental applications within days of listing.

Landlord Friendly

Unlike some areas around the country, Ohio is very favorable to landlords when it comes to any disputes with tenants.

To learn more about the Northeast Ohio market, check out our Market Report here.

Northeast Ohio Investment Property Market

What is the makeup of a typical single family home in Northeast Ohio?

Properties in our market were mostly built pre-1930.  They generally have 2 to 5 bedrooms and 1 or 2 bathrooms.  And the average home is around 1,200 square feet.

Learn More About Our Properties

How is True Turnkey able to provide properties at such a low price?

The average home value in Akron and the surrounding area is $68,100. TrueTurnkey buys distressed properties in bulk and because of the volume that we do, we are able to keep our construction costs low. As a result, we are able to provide investors with a property that is fully renovated and rented for less than what it would have cost them to do it themselves.

What is the extent of the rehab that you do?

Our #1 goal is to create a sustainable property that can provide long term predictable and sustainable cash flow for you.

And while this isn’t an exhaustive list, below are some of the major repairs and upgrades we do on a regular basis.

  • Inspect and if necessary repair/replace electrical throughout house.
  • Inspect and if necessary replace the roof.
  • Interior and exterior painting.
  • Updating and upgrading bathrooms and kitchens.
  • Replacing carpet throughout the house if necessary.
  • Inspecting and upgrading/replacing AC/heating unit if necessary.
  • Waterproof basements

It’s also important to note that all our properties are brought up to meet or exceed federal housing guidelines, making them suitable to participate in the federal housing voucher program.

Are the prices at market value?

We price our properties based on the cash flow it provides.  This doesn’t necessarily mean market value.

Often times, the properties are appraised at the sale price but it is important to remember that all our services are included in the price.

Learn More About Our Process

Who is the typical buyer?

  • Someone who owns or has previously invested in real estate.
  • Someone who has at least $50,000 in cash on hand and is ready to buy.
  • Someone that is looking for long term buy and hold real estate investments.
  • Someone that values quality workmanship and long term sustainability.

What's the buying process?

We have an easy 7-Step Buyer's Process, as outlined below.

1.   Purchase Agreement

  • Execute purchase agreement.
  • Title company will contact you.

2. Title Search

  • Wire instructions will be provided along with any necessary documentation.
  • Earnest money will be deposited in title company escrow account.
  • Expect approximately 4 days for the title to be cleared.

3. Inspection is scheduled and completed

  • An inspection is scheduled to be completed.
  • Once the Inspection Report is completed, it is sent to you for review.

4. Property Management Account Established

  •  Information regarding rent
  • Access to owner portal will be established.

5. Insurance

  • We will assist you in purchasing insurance.

6. Closing

  •  Total amount of funds needed to close will be provided.
  • Documents will need to be executed, notarized and returned to the title company.

7. Deed Transferred

  • Once all documents and buyer’s wire is received by title, the Deed will be transferred.
  • Deed transfer is completed 24 hours after transaction occurs.

How do I know the condition of the property I'm purchasing?

After the completion of the renovation & construction phase, all our properties are inspected by a third party licensed inspector. The inspector provides a comprehensive Inspection Report as well as any governmental agency reports that are required.

The Inspection is provided to you, the buyer, as step #3, as outlined in our 7-step buyer's guide (see above).

Do you provide Home Warranties on these properties?

YES! All of our properties come with a 1 year Home Warranty. Some of the items that are covered include: 

  • electrical
  • plumbing
  • appliances
  • heating and ductwork
  • air conditioning and ductwork 
  • water heater 

Do you provide rent guarantees?

YES! If a property is unoccupied at the time of closing, True Turnkey will guarantee up to 2 month’s rent. 

Do you provide loss of rental income insurance coverage?

One of the many benefits of working with one of our certified insurance companies is being provided with rental income insurance coverage.

The loss of income coverage, or “rental reimbursement” will prevent you from losing the income you would have had if you were collecting rent.
Coverage covers up to 1 years’ worth of rental income.

Learn More About Leasing & Managing Your Property

Who manages the property for me?

Qualified, licensed property management companies manage all our properties. We have formed great working relationships with three excellent property managers who've served our buyer's well over the years. But as the property owner, you are welcome to work with anyone you wish.

What are the typical Property Management fees?

  • Occupied Property: 10% of gross monthly rent received
  • Renovation (vacant) Property: $50/per unit
  • Securing Qualified Tenants: 50% of one month’s rent
  • Posting Notices: $20
  • Application/Background Services: $20
  • Software Fee: $1 per property per month

What type of tenant should I expect?

All our tenants undergo an extensive screening process.  And due to the high demand for our properties, we’re able to choose the best tenant for you as a potential investor.

Does the property come fully occupied on day 1?

We don’t sell a property until construction is completed and the property is either rented or in some stage of the leasing process.

What are some of the costs associated with my rental property?

  • Property taxes vary, but are somewhere around $1200 per year.
  • Property insurance also varies but is usually around $700 per year.
  • All the tenants are required to pay all utilities including electric, gas, water, sewer and trash.  And they’re also required to carry a rental insurance policy.
Andrew Schnall, Senior Client Advisor

Schedule a Call Today

Earning passive income can be life changing. As the Senior Client Advisor at True Turnkey, I can help you figure out if turnkey properties are right for you.