Turnkeys vs MLS deals with PM in place

[Sean Dezoysa]

I am looking at turnkey offers in some of the reputed cash flow markets on BP. Maybe I'm not comparing apples but it seems like they go for prices in line with well priced MLS deals. If this is the case I don't see the value add compared to buying from a larger pool of MLS inventory and selecting a reputed PM.

Am I missing something or are turnkey providers roughly equivalent to well selected MLS deals with decent property management, when working in strong cash flow markets?

[Chris Clothier]

@Sean Dezoysa Unfortunately, you have to throw the word Turnkey out when looking at this and just consider the condition of the property itself. If you can find a solid property on the MLS and the inspection shows no deferred maintenance or upcoming Capex issues AND you have solid property management that will manage the property for you, then you may have a comparable property to a proper turnkey investment. Unfortunately, turnkey is a marketing word will little universal meaning and not every property listed on an MLS is going to be in the condition I listed above. So, I think the question you should ask is, can you find a property that meets the condition you expect with strong property management (lose the word decent, investors can and should expect more in my opinion) regardless of being marketed as turnkey or on the MLS.