I understand turnkey is more expenisve

[Bradley Pietrzak]

im really liking turn key but it looks like you mite need more  of a downpayment to make it work with the 50 percent rule. Like a 1 third downpayment or 50 percent to make it cash flow worthy is this just the nature of the beast or am i just not seeing the right propertys what are some of your experiances?

[David Faulkner]

You understand that turnkey is more expensive, but do you truly and fully understand how much more expensive it is? Are you really paying market value for the property, or are you paying over market? What about those cash flow projections ... are they realistic? Vacancy rates, repairs, rents, utilities, taxes, insurance, etc. are those realistic (hint, do NOT rely on the 50% rule for your answer)? Is it really a good deal or not? You are likely paying for a recent remodel, but was it a quality remodel? Is the price you are paying appropriate for that market and that remodel? If you are using a turnkey company, you will likely be paying them for property management ... is the fee you are paying them reasonable for service provided and the time they are spending on your property. You will likely paying contractors through the PM for repair work ... are you paying them market rates for repairs performed, or are you paying over market with the PM taking a kickback on the repair under the table? Are all the repairs quoted real and necessary? Is it a quality repair job you paid for that will last 20 years, or was it a slapped together handyman special using bubble gum and duct tape that will break again in a few months?

These are all very real questions when assessing how much more you are paying with turnkey. Problem is, in order to answer them intelligently (as opposed to taking others at their word) is to have experience in the alternative to turnkey, which is hands on local investing. Then and only then can you have an adequate basis of comparison. Until then, you are just guessing and trusting, and by the time you figure out if your guess and trust were well placed it is too late, which is not a very good investment strategy IMHO.