Turn key investment or Fix & Flip ? 1st investment

11 Replies

Hello BP family ! I’v been approved for a sweet private funding here in my local area of Las Vegas and I’m ready to invest ! On your first investment property did you chose a turn key or fix and flip?

I did turnkey but I had some money from my engineering job. Not the best choice if you are low of funds but good if you are short on time.

I think this has more to do with what you want.  Do you have a day job, and plenty of income, but not a lot of time?  Then go turnkey.  Plenty of time, no money, then you definitely need to be more hands on.  You usually pay a premium with turnkey because they do all the work: find, rehab, rent, manage.  You're trading money for time.

Originally posted by @Michael Darten :
Hello BP family ! I’v been approved for a sweet private funding here in my local area of Las Vegas and I’m ready to invest ! On your first investment property did you chose a turn key or fix and flip?

 Totally different businesses. What are you looking to do? Invest in passive real estate or start your own business?

Buying a rental property is a long term passive investment. Flipping a property is an active business.

Originally posted by @Michael Darten :

James Wise *More than anything

Than turnkey isn't for you. Turnkey is a vehicle that should be used to invest existing funds. You ain't livin' off of the turnkey cashflow. You'll need to kick in way more than you take out. Think about it. You'll need at a minimum around $20,000 to fund any down payments. From that $20,000 you'll make at best $1,200 per year. It'll take you 16 years to recoup your investment. 

If you want to live off of your real estate you need to create an active real estate business. If I were you i'd look into becoming a licensed agent & pair that with some flipping & renovating. Can probably get lucky & buy yourself some undervalued rental property that can be sold for more down the road.

If you have time on your hands and want to handle a project... Fix and Flip.  If you are looking to be a passive investor... TurnKey.

TurnKey is normally a good investment for people that already have large salaries and are looking at long term wealth building.  When you are starting out, flipping, and taking a more active approach to building Capital is usually the best strategy.