Any Successful No Rehab (Turnkey) Investors on here
Member since 2020 · 101 posts · 32 votes
As I’ve learned more and more about real estate, I’ve come to the conclusion that I have no interest in flipping or doing a full rehab on a property I’m interested in. I’m taking a “buy and hold” strategy with tenants approach.
With that being said, the houses I plan to purchase should be move in ready or a “Turnkey”. Of course this means I’ll end up paying more for the property and that’s okay.
It seems that more people are focused on finding wholesalers, getting a property flipped etc.
Am I in the minority? Where I live in Arizona, a decent house will be $225K or more.
I want my property to be move in ready on the day of acquisition and if I have to pay that, it seems like the cost of doing the business I prefer. Thoughts? Suggestions?
There is absolutely nothing wrong with buying turnkey properties. If the numbers work for you and your goals, fits your style and comfort level as an investor then it's perfectly fine.
When I first set my goals to paper I estimated things using the idea of buying turnkeys to establish the baseline of how long it would take me to get there even though I knew I was going to attempt to BRRRR to speed things along and it was surprising to me how quickly I would have gotten there.
My first rental property (that I actually bought with the intention of it being a rental) was turnkey and has done nothing but print money for me since I bought it even though it has a 15 year note on it. I've built up enough equity in it since then to have since established a LOC that I now use to finance BRRRR deals.
There is absolutely nothing wrong with buying turnkey properties. If the numbers work for you and your goals, fits your style and comfort level as an investor then it's perfectly fine.
When I first set my goals to paper I estimated things using the idea of buying turnkeys to establish the baseline of how long it would take me to get there even though I knew I was going to attempt to BRRRR to speed things along and it was surprising to me how quickly I would have gotten there.
My first rental property (that I actually bought with the intention of it being a rental) was turnkey and has done nothing but print money for me since I bought it even though it has a 15 year note on it. I've built up enough equity in it since then to have since established a LOC that I now use to finance BRRRR deals.
I am in the same boat Ibrahim. Are you looking for local properties or have you considered OOS? If you're interested in OOS, there's a great company I really like in the Kansas City and Dallas markets called HomeRoom that will help you find and buy great properties then master lease them back from you. They are using a rent by the room model so they pay you market rent then they rent the rooms out individually. There are no property management fees and no headaches for you as the owner because they handle all the dealings with the tenants. Also they sign 3 year leases. It's a pretty great system. Sure, you won't get as high of returns as flipping or BRRRR but way less stress for you as the owner. Plus they are in good appreciating markets. Might be worth checking out.
https://livehomeroom.com/coliving-investing
There is absolutely nothing wrong with buying turnkey properties. If the numbers work for you and your goals, fits your style and comfort level as an investor then it's perfectly fine.
When I first set my goals to paper I estimated things using the idea of buying turnkeys to establish the baseline of how long it would take me to get there even though I knew I was going to attempt to BRRRR to speed things along and it was surprising to me how quickly I would have gotten there.
My first rental property (that I actually bought with the intention of it being a rental) was turnkey and has done nothing but print money for me since I bought it even though it has a 15 year note on it. I've built up enough equity in it since then to have since established a LOC that I now use to finance BRRRR deals.
I completely agree. A bunch of our clients in DFW invest in turnkey properties and it makes things much more simple when everything is new and all the HOA docs are ready to go. In Dallas na Fort Worth it's not everyday that you get a property like that though, but even so there's a lot of properties with a quick fix or two and they're ready to go.
@Josiah Jenison. I’m still building my business plan and lowering my personal debt to be in a better position to buy investment properties in a little over a year. Since I don’t have the “boots on the ground” experience, I’ll stick to my own backyard here in Arizona.
I haven’t ruled out the possibility of buying out of state investment properties, but that would probably be when I about to purchase my 3rd or fourth home
@Ibrahim Yamini you're not in the minority at all. A lot of people don't have the time or ability to a fixer and buy turn key. We work with lots of them Most people who are doing this on the side are buys with their work, family and outside interests and don't have the time to be hands on. It's also a good option for an out of state investor. If you go the turn key route, just make sure you're working with a good, reputable turn key company. These are some of the things that you should avoid in any turn key company:
Don't allow financing or a finance contingency (it can be a good indication they are selling above market value)