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Updated over 8 years ago on . Most recent reply

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65
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23
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Wade Alderson
  • Claremore, OK
23
Votes |
65
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How Much Down Payment for Turn Key Real Estate

Wade Alderson
  • Claremore, OK
Posted

I am going nuts spinning in circles going nowhere so have made it my goal to just buy a turn key real estate investment in like Ohio or Illinois (but I am not region faithful) by the end of 2017. I have been doing some research on line and am really super confused. I am reading that some turn key require 100% purchase price. 

I don't want to do that. I want the magic of leverage. I don't see the sense in putting $40,000 down on a little turn key in Ohio with $950 in rents when I could put $11,000 down on four  $40,000 little turn key homes in Ohio with $450 rents. 

Am I off base? 

Do I need to start taking road trips?

Thanks. 

Most Popular Reply

User Stats

217
Posts
88
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Franco Li
  • Vendor
  • New York, NY
88
Votes |
217
Posts
Franco Li
  • Vendor
  • New York, NY
Replied

Actually, you are brilliant! A lot of people don't understand the ideas behind leverage, and securing a good investment strategy starts with the proper loan. You are absolutely right, in that your 100% cash payment is essentially equal to 2-3 downpayments, generating a hefty multiple than 1 house. 

I do think you should network a bit, especially on here, and you'll find a ton of areas with lots of opportunities. Don't take the road trip just yet! 

-FL

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