Turnkey Rental? Or Fix & Hold?
Hey Everyone,
General question on starting out: given the choice between purchasing a turn-key property or a property that needs some love, what makes the better option for someone looking to buy their very first rental property?
My wife and I bought our first house (primary residence) this summer, so cash reserves are a little light, but we still are extremely interested in getting into real estate investing. We know we want to invest in cash flowing properties, but are torn between trying to find a fix-and-hold, or to keep it simpler for our first property and only worry about land lording. From listening to the podcasts and reading blogs, it sounds like managing contractors can be a bit of a pain and we have less than no experience in dealing with contractors. I'm curious - is there anyone who started with a fix and hold? What are some of the pitfalls to be conscious of? Am we off our rockers in wanting to start out this way?
Thanks for any advice or anecdotes to help us start our journey!