Turnkey vs MLS purchase for out of state rental

[Simon Stahl]

I am wondering what the advantages are for using a turnkey company to buy out of state rental properties. I realize they take some of the work off my hands, but for quite a price. 

These are the pros and cons that I come up with

Turnkey pros:

• Easy process
• Completely fixed up properties
• Property management in place
• Probably some level of accountability in case something turns out to be wrong with the property

Turnkey cons:

• Price
• Research into turkey company itself is required

MLS pros:

• Price
• More properties to choose from

MLS cons:

• I might have to do some repairs myself
• I have to setup the property management myself

Buying directly from the MLS would probably save me about 10% or 20% of the purchase price. I would still have to do my own due diligence in either case.

What do others think about this? Would you rather buy from a turnkey company or from the MLS? Why?

[Ali Boone]

I wrote an article earlier this year comparing BRRRR and turnkeys- which should people do. You aren't specifically asking about BRRRR, but basically the same ideas go into it.

https://www.biggerpockets.com/renewsblog/buy-rehab...

MLS properties can be a lot riskier than turnkeys, but they can also work out great if you know what you are doing. My biggest caution is- don't just go off what the MLS tells you. Another article that isn't specific to exactly what you're asking, but I think the same advice can go for MLS as with shopping for properties on Zillow-

https://www.biggerpockets.com/renewsblog/2016/01/1...

Sorry to over-article you, but hopefully those give you some ideas to work with. Reach out anytime if I can be of any help. I've always just gone the turnkey route myself, for lack of desire to work that hard for my investments.