Turnkey. Am I a wussy?

Buying & Selling Real Estate
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Turnkey. Am I a wussy?

Tony Velez
Hvac 路 North Haven, CT 路 Member since 2015 路 298 posts 路 79 votes

Am I a wussy for thinking turnkey for my first real estate investor?  Be honest I can take it. 馃槉

Thanks

Tony V

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James Wise
Real Estate Broker 路 Cleveland Dayton Cincinnati Toledo Columbus & Akron, OH 路 Member since 2013 路 30k+ posts 路 20k+ votes
10y

Turnkey is a service just like any other service. Will you pay more for everything to be done on your behalf instead of doing it yourself? Yes, of course. Just like it will cost more money to have your car fixed by a mechanic as opposed to doing it in your garage.

It is a trade off. Do you want others to do work for you or do you want to save a few bucks and do it yourself? 

One important thing to think about: When you are doing it yourself to save a few bucks are you taking time away from your other earning potential?

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  • Ariel Oclarino
    IT Manager 路 Cleveland, OH 路 Member since 2013 路 25 posts 路 5 votes
    10y

    wuss?  No, thinking about investing and taking action ... I don't consider that being a wussy. It is all up to you and your preference of investing. My experience research, ask for references ,  check out their work etc

    Good luck

    1Reply
  • Ndy Onyido
    Toronto, Ontario 路 Member since 2014 路 615 posts 路 172 votes
    10y

    I am a Canadian living inToronto and investing in the US. TK is my only option and so far so very good!

    3Reply
  • Albert Ng
    Rental Property Investor 路 San Jose, CA 路 Member since 2015 路 401 posts 路 221 votes
    10y

    Just be careful when buying a turn key. Most are out of state & you are at the mercy of the property manager & tenants when something happen.

    0Reply
  • Charles Craggett
    Cleveland, OH 路 Member since 2015 路 42 posts 路 13 votes
    10y
    Originally posted by @Tony Velez:

    Am I a wussy for thinking turnkey for my first real estate investor?  Be honest I can take it. 馃槉

    Thanks

    Tony V

     Do what makes you feel comfortable man. Its your money on the table not theirs! =)

    3Reply
  • Alexander A.
    Investor 路 Indianapolis, IN 路 Member since 2015 路 143 posts 路 82 votes
    10y

    I am in the process of buying my 4th TK house right now and I was not a newbie when I started buying these.  I was buying local before and had a few deals underneath my belt before I ever decided to go TK.  

    The reason I did was because the returns and cash flow are better for me not to mention cheaper purchase prices.  All what I need right now for my investing strategy.  I am all about passive income and cash flow because I am going to use that money to retire early.  If I cant find passive income where I am at now then I am looking elsewhere.

    Do what you need to do my friend, it doesn't matter what anyone else says or does as long as you are making money!

    Feel free to PM me if you need any additional info/recommendations or just help in general.  I'm more then happy to help.

    2Reply
  • Adam BartomeoBusiness Member
    Real Estate Broker 路 Cape Coral, FL 路 Member since 2015 路 2k+ posts 路 1k+ votes
    10y

    Yes

    [email protected]239-339-3969
    Bartomeo Property Management4.7150 Reviews
    WebsiteView Page
    1Reply
  • Tony Velez
    OP
    Hvac 路 North Haven, CT 路 Member since 2015 路 298 posts 路 79 votes
    10y

    @Adam Bartomeo has the best answer yet. lol 

    1Reply
  • Jim Walker
    Real Estate Agent 路 Carmichael, CA 路 Member since 2011 路 17 posts 路 20 votes
    10y

    If a property is not clean and move in ready when you close escrow, you will have down time where can not earn any rent or even show the property until it is ready. Factor that in to your cost in addition to repair, labor, materials, permits, and don't forget project management. Either you pay someone for project management or you should value the hours you put in yourself.  The scenarios of buying at $80,000, putting $20K in, then having a house worth $130,000 as a result are hilarious. You know why it is worth $130K later?Because a couple of years have gone by, that's why.  Some flippers need to get out from under their hard money loan and will sell reasonable. Here in Sacramento, buying fixers in 2016 has minuscule returns.   If you were a Sacramento buyer, I would recommend buying something that already had a good tenant, or one that is move in ready.  The tenant occupied are usually better than either vacant fixers or turnkey flips because owner occupants and even many investors are reluctant to go after tenant occupied single family homes.

    0Reply
  • Account Closed
    Writer 路 Cambridge, MA 路 Member since 2015 路 5 posts 路 4 votes
    10y

    I am very new to all of this, so take my opinion with a grain of salt, as I haven't even started investing yet.  I'm in the "gather information" stage.  But, I live in an area of the country where I won't even think about investing.  Prices are prohibitive for me, you'll never get the 1 % return.  Half a million for a property that needs a little TLC, that you'll never rent for more than $3k a month tops.  It's crazy, and I won't even consider it.

    That means I'm looking to invest out of state.  So turnkey, whether it makes me a wuss or not, is something that is at the top of my list of possibilities.  I also know myself.  I'm not looking to get rich, I'm simply looking to eventually replace a full time income so I don't have to work.  And, I want as hands off an experience as possible.  So, what I'm basically trying to say here, is you have to figure out what works for you and what kind of investor you want to be.  I don't think turnkey is a bad place to start, and I don't think it makes you a wuss.  For someone with a full time job, who wants a hands off experience, and can't invest locally, it seems like an almost perfect option to start generating some cash flow.  You have to start somewhere.

    0Reply
  • Robert Nason
    Lowell, MA 路 Member since 2014 路 260 posts 路 99 votes
    10y

    I wouldn't call it being a wuss at all, I would call it being an astute investor. There are plenty of investment properties out there that do not require renovations.  I think it's a good strategy, getting your feet wet with something that's manageable is a great approach. I've been investing for over 25 years and when looking I still prefer to buy something where all the heavy lifting is has been done. I don't mind cosmetics, such as painting, sanding floors, installing tiles etc etc.  There may be more profit in taking on a renovation, but there's also more risk. Being safe on your first investment is paramount to future success.

    0Reply
  • Ankith Chandra
    Houston, TX 路 Member since 2015 路 47 posts 路 20 votes
    10y

    As many of the investors have mentioned, you need to be honest with yourself and understand what suits you the best. Hands on or hands off approach. Hats off to those who have a full time job and manage properties by themselves. 

    A Question about Turnkey:

    Apart from considering NOI and Cash Flow, what other metrics should one look at while considering a turn key investment? Should breakeven period be taken into consideration?

    0Reply
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