Buying Turnkey properties

[Daniel Vargas]

Hello everyone, I’m looking to buy my first rental property within the next year.  My question is should I buy a turnkey property or something I can put some sweat equity into? Thanks

[Eric DeNardo]

@Daniel Vargas,

I would have you think about a couple things and answer these questions. 

1. Do you have the time to put sweat equity into a property? 

2. Do you have the cash to rehab a property on top of the 20% down payment and closing costs? You should also thinkgholding costs, the longer you rehab, the more expensive it is because you won't have a tenant paying rent. 

Also, think about buying a primary residence and renting out a basement or rooms. You can find something that is livable, but you can upgrade over time while you live there.