Frequently Asked Questions
- Price to Rent ratios- In the Akron and Cleveland area we’re able to buy houses that, once renovated, will produce high rents relative to these low purchase prices. Because of the low prices we buy at, combined with the high rents our properties produce, our investors earn very attractive returns.
- Appetite for quality rentals – Residents in the Akron 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.
- Tenant/landlord disputes – Unlike some areas around the country, Ohio is very favorable to landlords when it comes to any disputes with tenants.
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. Condition report is scheduled and completed
- The Condition report is scheduled to be completed
- Once the Condition 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
- We will assist you in purchasing insurance
- 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, they will then have the Deed transferred. Deed transfer is completed 24 hours after transaction occurs.
After the completion of construction, all our properties are inspected by a third party that provides a comprehensive conditions report as well as any governmental agency reports that are required.
Qualified licensed property management firms manage all our properties.
- 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
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.
- 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.
Properties in Akron 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.
The average home value in Akron 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.
We don’t sell a property until construction is complete and the property is in some stage of the leasing process.
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.
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.
A company with in depth knowledge of and experience in construction, renovation, and single family real estate investments.
- A 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.
- They’re closing on a property simultaneously or they do not yet own the property they’re trying to sell you.
- They’re 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.
- 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.
YES! All of our properties come with a 1 year Home Warranty. Some of the items that are covered include:
- heating and ductwork
- air conditioning and ductwork
- water heater
YES! If a property is unoccupied at the time of closing, True Turnkey will guarantee up to 2 month’s rent.
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.
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.