Pros and cons of turnkey investments

2 Replies

I am looking to do my first deal within the next 3-6 months and currently live in Washington DC. Since I am currently priced out of the DC market I think it makes the most sense to invest out of state. Being that this is my first deal I am looking into working with a company that provides turnkey investments to go through the process of closing a deal with minimal risk.

What are some of the advantages and disadvantages of turnkey investments and what are they typical returns once should expect from this type of investment?


@Martin Fields this topic is discussed all over BP. Just google “turnkey property BiggerPockets” and you’ll get lots of threads.

My opinion as a former turnkey owner is long term you break even at best. There’s just too many fees involved.

Advantages: If done right, it might be an "okay" investment at best

Disadvantages: TK Providers strip the most equity from your property possible after rehab, don't always replace mechanicals resulting in surprising repairs, and usually fudge numbers to make an investment attractive to the buyer.

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