Turnkey rental properties for a new investor

[Account Closed]

If I'm understanding things correctly, turnkey properties already have a tenant and property manager in place. Does that make them appropriate for a new investor (because a lot of the "hard work" has already been done)?

[Kenny Dahill]

@Account Closed, that makes them convenient.  Not necessarily appropriate.

Convenience comes with a 'tax'.  They burdened the risk to renovate the property and then place a tenant, you skipped it.  However, there are plenty of new investors who do not go with the turnkey approach and instead decide to learn through the trench.  They can be rewarded with higher returns because the earlier in the process you take a property over, the more risk.

Turnkeys can also be more dangerous.  Always do your due diligence in real estate.  Always.  Make sure you know their quality of workmanship, quality of tenant, etc.  Just because they placed the tenant doesn't mean they are good.  If you skim your due diligence that is where you'll find yourself in more trouble and hard work.