Turnkey for first investment property?

Question

Chris T. · Answer

@Zack Ellard

Pros

- it is a system you're buying. Just like franchises.

- some companies offer rent guarantees for a period of time

-you should get a better ROI especially when you leverage with a mortgage.

Cons

-little equity

-lack of control

-what is your exit strategy?

-you don't learn as much compared to actually buying a house, screening a tenant, renting it out etc.

If you do decide on TK, you need to vet, vet and vet the TK provider. Talk to at least 6 references. 3 provided by them. And 3 clients you can find on BP. Visit their operations in person, visit their properties. Hire an experienced home inspector. GET EVERYTHING IN WRITING.

good luck!

Tom Ott · Answer

Investing in turnkey is a very unique process. You want to make sure you find an actual turnkey provider. Sometimes these companies do not own the property and they just find listings for you. That is not really a turnkey provider! The best thing about investing in a turnkey is the ability to invest in other markets you would not normally look in to. Say you live in a high priced market (like CA or NY) investing in those markets are next to impossible! But a market in the Midwest, or somewhere else in the country, would yield a much better ROI. Since it is a turnkey everything will be done ahead of time and you do not need to stress as much about getting the home rent ready.

Always do your research before investing in a company. Make sure they are true to their word. If you have any questions, please feel free to send me a message.

Anton Ivanov · Answer

@Zack Ellard

In my opinion/experience, the biggest pro of buying a turnkey property is that you will be eliminating time and risk associated with finding a deal and rehabbing a house. With turnkeys that will be done for you.

The biggest con is that you will end up spending more on a turnkey than if you bought and rehabbed the house yourself.

Turnkey for first investment property?

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