Buying Turnkey Properties

3 Replies

How do you make your money upfront when investing in turnkey real estate where it’s more difficult to negotiate on the price of the home, let alone buying it at a 20% discount?

Originally posted by @Chris Kuhl :

How do you make your money upfront when investing in turnkey real estate where it’s more difficult to negotiate on the price of the home, let alone buying it at a 20% discount?

 You can't. Unless you do the following spreadsheet:

Average Turnkey Cash Flow Per Door In Phoenix Metro Area No Bank Financing Needed

https://www.biggerpockets.com/forums/600/topics/584916-average-cash-flow-per-door-in-phoenix-metro-area

Turnkey isn't for someone looking to make money up front. Its for someone who has no time to look for deals, do a rehab, hire a PM company and place a tenant in for them. Its basically like going to a restaurant and ordering your meal already prepped and you can just eat it vs going grocery shopping, cooking it yourself, etc. You will pay a little more for it, but it saves you time, hassle and SHOULD be safer for a newer investory. 

Originally posted by @Chris Kuhl :

How do you make your money upfront when investing in turnkey real estate where it’s more difficult to negotiate on the price of the home, let alone buying it at a 20% discount?

 You don't. It's a long term investment. You make money via monthly cashflow, appreciation, tax burden reduction and principle paydown.