Turnkey property. What does that exactly mean?

Question

Jody Newman · Answer

It means you are the last in line to make money.................................

If you like the property go get your own realtor and make an offer!

James Wise · Answer

You are over complicating. You need to contact a Realtor & have them show you duplexes in your area that are either occupied or vacant but move in ready. Then you buy & start managing it yourself. Rinse & Repeat many times over...Then buy yourself a boat.

Tom Ott · Answer

Turnkey is a type of investment. It is mainly for passive investors who work a 9-5 or want to get into another market out of state.

Ideally, the provider will own, renovate, and manage the property all in house. They will not use any third parties for anything.

I would suggest looking at:

The Best Types of Markets for Profitable Turnkey Properties

and

What to Ask When Working With a Turnkey Provider

Brent Coombs · Answer

@Perla Leon, I'm curious: How have you concluded that it's a "good price"?

To the best of my knowledge, you're not obliged to use their services to manage the Property, but it might mean you lose a certain "warranty" that would otherwise come with the sale.

In general, I reckon the only pro with Turnkey companies is the fact that their management services do let you off the task of self-managing! So while I agree that, yes, those management costs can eat heavily into any cash flow, I reckon the biggest chunk of cost is the fact that you'd likely be paying more for it in the first place than the rest of the market was offering!

"Turnkey" means they've made it rent-ready, they have the contractors, they do everything.

ie. You sit back and relax. ie. They see your deep pockets, and they sell you the dream!

Back to my first point, care to share the cold hard numbers that make it a "good price"?