Thoughts on Turnkeys?

[Shelby McKean]

I don’t hear much about turnkey properties on the BP podcasts.  Is there a strategy for buying something that someone else has already improved or is inexpensive (or off-market) and starting to do a short-term rental right away?    I realize that turnkey properties mean you can’t improve equity so a re-assessment would not add lending dollars, but is there a scenario where the numbers work?  Break-even cash flow?

I am thinking of using an apartment or condo to eliminate my commute four days per week and making it available on weekends for STR. My primary residence also has an apartment I am preparing as an STR.

[Marc Rice]

Quote from @Jonathan Greene:

Look, someone from Columbus is again telling someone to invest there. What a surprise.

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The first thing you want to do is repurpose the word turnkey into rent-ready. Turnkey is a system - rehabbed property marketed and sold by a company who bakes the property management into your future. You have limited appreciation and often the taxes go up later and shortfall the cash flow expectation.

Rent-ready for you would also mean live-ready, but by having two residences and two short-term options when you are not there, you are creating a lot of upkeep and maintenance on both that will be very hard to manage.

You were the first one to say the word "Columbus" 🧐 ?