Turnkey outside of NYC

[Jermaine McIntosh]

Hey all,

I heard a few investors start out by investing in turnkey properties outside of NYC due to NYC's very high prices. So I would like to know for those who have invested in turnkey properties what are the pros/cons of this type of investment?

Thanks

[James Wise]

You came to the right site to discuss Turnkey. Tons of debate back and fourth on turnkey investing. I would do a turnkey search as there are many existing threads discussing the pros and cons of turnkey investing.

Would also recommend setting turnkey up as a keyword alert. It is by far my most active keyword alert.

[David Hodge]

Hi @Jermaine McIntosh,

I have not purchased a turnkey property yet but will be closing on my first one tomorrow. It's a SFH in Birmingham. There are a lot of pros and cons but I'd say the major pro is that it's fairly easy for someone who doesn't have a lot of time to be hands on with purchasing, rehabbing and tenanting a property. It is also safer for an inexperienced investor to purchase a property that doesn't require any additional rehab work. If you purchase a fixer upper, you could easily under estimate rehab costs and end up spending more on a property than if you purchased it turnkey.

The major con is that you're typically buying retail.  You aren't going to find an incredible deal from a turnkey company like you might if you search for distressed properties and fix them up yourself (if you're a TK provider and you disagree, please send me you best deals!!)  The work has already been done so it's easy for you but you probably won't have much equity on day one like a more active investor might.  Another con is the potential of getting screwed over by an unethical provider.  This can be avoided by doing your own research.

I am currently buying TK because I work 70+ hours a week and don't have time to be hands on right now.  I do hope to become a more active investor in the future.  I feel that buying some TK properties is a safe way to get my feet wet and hopefully make some decent returns!

[Account Closed]

David Hodge "dido"

[Ali Boone]

I did that exact thing, living in LA where the prices are in the same situation as NYC. I love turnkeys and they are all I really care to deal with. The pros are: everything is done for you, minimal time/effort required, I think they are smarter because they have a lot of expertise built into them that I would never have on my own, and you can easily own in multiple markets. Cons: just dealing with property management sometimes. Most of the PMs I know that work with the turnkey companies now are pretty good, but PMs are never the best of the real estate bunch. So sometimes they can get frustrating, and at worst they cost you a fortune because they suck. But again, not as much of that with the turnkey guys nowadays like there used to be. 

Granted those pros and cons are all based on dealing with a good, reputable turnkey provider, but if you go that route, I'd venture to say the risk you will endure (assuming you do proper due diligence) would be less than with any other type of investment!

[Jermaine McIntosh]

thanks for the advice on Turnkey properties BP family. I will definitely look into turnkey providers and the properties they offer.

[Kevin Darrell]

Interesting turnkey debate going on right now. Title is "Am I a wussy for wanting to buy turnkey". Lol.