Any investors here pursue turn-key rentals as part of their investment strategy?

6 Replies

Are there any investors here that pursue turn-key rentals as part of their investment strategy?  

When looking at turn-key rentals, what is your primary objective?   Cash flow?  Appreciation?  Or both?

@Adrian Chu

  many do and you will no doubt get many replies..

there are 3 levels of turnkey providers on BP from my estimation.

1. actual turn key companies who you can deal direct with.

2. Marketing agents for turn key companies who are acting as RE brokers and taking a commission to steer you only to those companies that pay them.

3. and under the radar turn key companies that do more of a personal service type job..

the key is PM long term and quality rehab up front and not choosing war zones to begin with.

@Adrian Chu

 Hi and welcome to BP!  I am an investor in turnkey buy and hold rentals as a large part of my overall investment strategy.  Cash flow is the primary objective, appreciation a bonus, but there are also other benefits, such as tax benefits (depreciation), equity build (tenants paying down principal), and holding an asset that I have control over, but can choose to be quite passively involved as long as it is performing.

Originally posted by @Adrian Chu :

When looking at turn-key rentals, what is your primary objective?   Cash flow?  Appreciation?  Or both?

These objectives don't really have anything to do whether you're buying a turn key. You can achieve either of these in the right market. The important thing is to define your objective before you choose a market.

My whole portfolio is turnkeys. I always shoot for cash flow first, but I always try to pick areas that have some appreciation potential behind them too. It's all about market growth and where the market is in their expansion cycle.

Adrian,

My primary objective was cash flow in area I felt comfortable investing in. That level of comfort came from establishing a great team to protect my investment. My area lacks relative appreciation as its very linear, but it gave me a good starting point within my investing career. Really scrub your goals, short term, and long term.. That should help with your objectives. You also don't need a home run product everywhere you go that gives all the great attributes of real estate. Singles and double can build great momentum as well..

Hope that helps!

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