Turnkey solutions - yay or nay

[Richard Covarrubias]

I'm just starting out in the real estate world and am targeting buying a low cost rental property in the midwest. I own a small, remote business and live in Maui, so I will not be able to manage the property (and hopefully more in the future) myself, so I have been considering a turnkey property that can be rented and managed for me. 

Would anyone recommend getting into real estate investing in this fashion? Would love to hear from people that chose this path as their entry in REI and the associated pros and cons.

Thanks!

Rick 

[Theo Hicks]

It is definitely possible to acquire an out-of-state deal yourself, even without ever visiting the market or seeing the property. You will need to find a trusted realtor who sends you deals and help you with the contract to close phase and property management company who will manage the deal after acquisition. Compared to the turnkey strategy, it will take more time upfront on your send, but the ongoing time commitment is the same plus there is more profit upside (can likely get the deal at a lower cost and pursue value-add opportunities).