Turn Key Short Term Rentals?

[Nick Moats]

All, 

I am looking to do my first real estate investment deal in the next 6 months max. I’ve decided on short term rentals, possibly Airbnb arbitrage, as my first approach. I have seen info about turnkey properties that are basically done for you, of course given you are paying more and losing out on cash flow. Specifically, I saw one of many real estate influencers online speak about turn key Airbnb properties they offer. 

Can anyone please offer some more info about turnkey properties specifically for short term rental/airbnb use, pros and cons, etc. I am trying to consider if this is an approach I’d want to take. Turn key appeals to me because this would be my first deal and if I understand correctly, you are paying more in order to avoid any rehabs, potentially already have property management taken care of, and other things that a beginner might struggle to do on their own or have a hard time finding the right people to hire for these jobs. 

Any and all insights and info are welcome, thank you!

[Nathan M kiefer]

Str turnkey is the only way we buy. I may pay a little more but I am making money almost immediately as it is furnished and has proper fit and finish. We dont buy anything we cant flip in less than 30 days to a str or ltr. Its kind of a pipe dream to think you will save so much money(at least in the current market) on a low buy to spend 6 mos carrying it and missing revenue to start making money later on.

We did this a little in the 09-11 crash and recovery but we were stealing houses back then for prices we will never see again in my opinion.

Turnkey is the way to go with a little deco required and maybe light paint(think nothing that you cant do at gaps in rental). We manage our own so cant comment on that part. 

[Andrew Steffens]

If its turnkey and done well its more upside than downside. The premium they are getting on the sale is cheaper than paying for everything brand new, and as mentioned above you can cashflow nearly from day one.  Again make sure it is done, i.e. looks good, is comfortable, durable, etc.

[Sarah Kensinger]

Turn-key is great when it comes to listing the property right away, but many times you do need to swap out some furnishings for one reason or another. Don't forget in this STR market a property has to stand out and be unique. Unfortunately turn-key ready to list from day one, usually doesn't fit that category. But I would highly recommend finding a property that is nearly ready and after a few simple changes can be listed within 14 days of closing.

Lastly, I'm not sure if the influencers online offer turn-key properties for a charge, but I would be hesitant to pay someone to do that! Rather connect with a realtor in the area you're interested in and give them your buy box. If it's a vacation market many many times, there are properties listed for sale that are turn-key.

[Nick Moats]

Quote from @Nathan M kiefer:

Str turnkey is the only way we buy. I may pay a little more but I am making money almost immediately as it is furnished and has proper fit and finish. We dont buy anything we cant flip in less than 30 days to a str or ltr. Its kind of a pipe dream to think you will save so much money(at least in the current market) on a low buy to spend 6 mos carrying it and missing revenue to start making money later on.

We did this a little in the 09-11 crash and recovery but we were stealing houses back then for prices we will never see again in my opinion.

Turnkey is the way to go with a little deco required and maybe light paint(think nothing that you cant do at gaps in rental). We manage our own so cant comment on that part. 

 Nathan, I appreciate your feedback. This is validating and aligns with my thought process thus far. Can you provide any good websites/sources for great Turn-Key properties to purchase/rent? I am not set on a specific location for my first investment yet, so some general websites or POCs for any area would both be great.

[Nick Moats]

Quote from @Andrew Steffens:

If its turnkey and done well its more upside than downside. The premium they are getting on the sale is cheaper than paying for everything brand new, and as mentioned above you can cashflow nearly from day one.  Again make sure it is done, i.e. looks good, is comfortable, durable, etc.

 Andrew, Thank you for your insight. Seems to mirror what I am leaning towards and puts some credibility to the info I have found online about turn-key. Same question as I have asked Nathan, can you recommend any great sites/resources for finding Turn-key properties for sale/rent? I am ot set on a specific location yet, still in research phase.

[Nick Moats]

Quote from @Sarah Kensinger:

Turn-key is great when it comes to listing the property right away, but many times you do need to swap out some furnishings for one reason or another. Don't forget in this STR market a property has to stand out and be unique. Unfortunately turn-key ready to list from day one, usually doesn't fit that category. But I would highly recommend finding a property that is nearly ready and after a few simple changes can be listed within 14 days of closing.

Lastly, I'm not sure if the influencers online offer turn-key properties for a charge, but I would be hesitant to pay someone to do that! Rather connect with a realtor in the area you're interested in and give them your buy box. If it's a vacation market many many times, there are properties listed for sale that are turn-key.

 Sarah, I appreciate your personal insight. Great point about Turn-Key needing some interior design work before being a competitive and list ready option. I appreciate the heads up about getting a property through an online influencer and I agree. Any resources/sites you recommend aside from area specific realtors for browsing great Turn-Key properties? 

[Nathan M kiefer]

Quote from @Nick Moats:

Quote from @Nathan M kiefer:

Str turnkey is the only way we buy. I may pay a little more but I am making money almost immediately as it is furnished and has proper fit and finish. We dont buy anything we cant flip in less than 30 days to a str or ltr. Its kind of a pipe dream to think you will save so much money(at least in the current market) on a low buy to spend 6 mos carrying it and missing revenue to start making money later on.

We did this a little in the 09-11 crash and recovery but we were stealing houses back then for prices we will never see again in my opinion.

Turnkey is the way to go with a little deco required and maybe light paint(think nothing that you cant do at gaps in rental). We manage our own so cant comment on that part. 

 Nathan, I appreciate your feedback. This is validating and aligns with my thought process thus far. Can you provide any good websites/sources for great Turn-Key properties to purchase/rent? I am not set on a specific location for my first investment yet, so some general websites or POCs for any area would both be great.

 https://oceanlakesproperties.com/

Scroll down for properties for sale on the site 

Location is Myrtle beach sc. We own 2 there- turnkey and they are 4/4's and generate between 70-75k/year gross.

Best of luck and Happy holidays!

[Tatum Littleton]

There are pros and cons of course, but it's up to you depending on how much you do or don't want to do. If you want as little hands-on as possible, turnkey is obviously the way to go BUT you can still sell/get rid of furniture you don't like and make some small changes. You can also see numbers for how well (or not well) it has done and decide on that and maybe what you can keep doing or do even better. As you mentioned, you will pay a bit more but it may be a great deal doing no work and can get visitors asap. 

Again, it depends on what you want to do and it seems like you have already had some good thoughts and thought it through. Take all the opinions and figure out which ones work for you! Good luck!

[Nick Moats]

Quote from @Tatum Littleton:

There are pros and cons of course, but it's up to you depending on how much you do or don't want to do. If you want as little hands-on as possible, turnkey is obviously the way to go BUT you can still sell/get rid of furniture you don't like and make some small changes. You can also see numbers for how well (or not well) it has done and decide on that and maybe what you can keep doing or do even better. As you mentioned, you will pay a bit more but it may be a great deal doing no work and can get visitors asap. 

Again, it depends on what you want to do and it seems like you have already had some good thoughts and thought it through. Take all the opinions and figure out which ones work for you! Good luck!

Thank you for your insight and opinion Tatum, every comment helps me decide and help me avoid spinning my tires on making a decision. Doing some more research today and hope to pull the trigger on a definite method before the New Year.  

[Nick Moats]

Quote from @Nathan M kiefer:

Quote from @Nick Moats:

Quote from @Nathan M kiefer:

Str turnkey is the only way we buy. I may pay a little more but I am making money almost immediately as it is furnished and has proper fit and finish. We dont buy anything we cant flip in less than 30 days to a str or ltr. Its kind of a pipe dream to think you will save so much money(at least in the current market) on a low buy to spend 6 mos carrying it and missing revenue to start making money later on.

We did this a little in the 09-11 crash and recovery but we were stealing houses back then for prices we will never see again in my opinion.

Turnkey is the way to go with a little deco required and maybe light paint(think nothing that you cant do at gaps in rental). We manage our own so cant comment on that part. 

 Nathan, I appreciate your feedback. This is validating and aligns with my thought process thus far. Can you provide any good websites/sources for great Turn-Key properties to purchase/rent? I am not set on a specific location for my first investment yet, so some general websites or POCs for any area would both be great.

 https://oceanlakesproperties.com/

Scroll down for properties for sale on the site 

Location is Myrtle beach sc. We own 2 there- turnkey and they are 4/4's and generate between 70-75k/year gross.

Best of luck and Happy holidays!

Thank you Nathan, I shall take a look. Happy Holidays to you as well!

[Nathan M kiefer]

Quote from @Nick Moats:

Quote from @Nathan M kiefer:

Quote from @Nick Moats:

Quote from @Nathan M kiefer:

Str turnkey is the only way we buy. I may pay a little more but I am making money almost immediately as it is furnished and has proper fit and finish. We dont buy anything we cant flip in less than 30 days to a str or ltr. Its kind of a pipe dream to think you will save so much money(at least in the current market) on a low buy to spend 6 mos carrying it and missing revenue to start making money later on.

We did this a little in the 09-11 crash and recovery but we were stealing houses back then for prices we will never see again in my opinion.

Turnkey is the way to go with a little deco required and maybe light paint(think nothing that you cant do at gaps in rental). We manage our own so cant comment on that part. 

 Nathan, I appreciate your feedback. This is validating and aligns with my thought process thus far. Can you provide any good websites/sources for great Turn-Key properties to purchase/rent? I am not set on a specific location for my first investment yet, so some general websites or POCs for any area would both be great.

 https://oceanlakesproperties.com/

Scroll down for properties for sale on the site 

Location is Myrtle beach sc. We own 2 there- turnkey and they are 4/4's and generate between 70-75k/year gross.

Best of luck and Happy holidays!

Thank you Nathan, I shall take a look. Happy Holidays to you as well!

Thank you!

[Sarah Kensinger]

Quote from @Nick Moats:

Quote from @Sarah Kensinger:

Turn-key is great when it comes to listing the property right away, but many times you do need to swap out some furnishings for one reason or another. Don't forget in this STR market a property has to stand out and be unique. Unfortunately turn-key ready to list from day one, usually doesn't fit that category. But I would highly recommend finding a property that is nearly ready and after a few simple changes can be listed within 14 days of closing.

Lastly, I'm not sure if the influencers online offer turn-key properties for a charge, but I would be hesitant to pay someone to do that! Rather connect with a realtor in the area you're interested in and give them your buy box. If it's a vacation market many many times, there are properties listed for sale that are turn-key.

 Sarah, I appreciate your personal insight. Great point about Turn-Key needing some interior design work before being a competitive and list ready option. I appreciate the heads up about getting a property through an online influencer and I agree. Any resources/sites you recommend aside from area specific realtors for browsing great Turn-Key properties? 

Not that I can think of. I know there's been a few groups that have tried to create a platform of STR for sale listings, but I don't think they've gone anywhere. 

[Andrew Steffens]

Quote from @Nick Moats:

Quote from @Andrew Steffens:

If its turnkey and done well its more upside than downside. The premium they are getting on the sale is cheaper than paying for everything brand new, and as mentioned above you can cashflow nearly from day one.  Again make sure it is done, i.e. looks good, is comfortable, durable, etc.

 Andrew, Thank you for your insight. Seems to mirror what I am leaning towards and puts some credibility to the info I have found online about turn-key. Same question as I have asked Nathan, can you recommend any great sites/resources for finding Turn-key properties for sale/rent? I am ot set on a specific location yet, still in research phase.

Im sorry I wish I could. I am a licensed broker and in addition to co-owning the PM co I am active in working with investors looking in the Tampa Bay area for rentals, so I scour the MLS daily and always catch them as they are listed, or have access to off market as well.

I would recommend finding agents in your local area that specialize in at least investment properties but hopefully STR's to do the same for you!

[Nick Moats]

Quote from @Andrew Steffens:

Quote from @Nick Moats:

Quote from @Andrew Steffens:

If its turnkey and done well its more upside than downside. The premium they are getting on the sale is cheaper than paying for everything brand new, and as mentioned above you can cashflow nearly from day one.  Again make sure it is done, i.e. looks good, is comfortable, durable, etc.

 Andrew, Thank you for your insight. Seems to mirror what I am leaning towards and puts some credibility to the info I have found online about turn-key. Same question as I have asked Nathan, can you recommend any great sites/resources for finding Turn-key properties for sale/rent? I am ot set on a specific location yet, still in research phase.

Im sorry I wish I could. I am a licensed broker and in addition to co-owning the PM co I am active in working with investors looking in the Tampa Bay area for rentals, so I scour the MLS daily and always catch them as they are listed, or have access to off market as well.

I would recommend finding agents in your local area that specialize in at least investment properties but hopefully STR's to do the same for you!

 No problem Andrew, I appreciate that advice!

[Mark Cruse]

I purchased both of my properties at Snowshoe turn key. I had an advantage of buying from another member of my master mind group. He was trusted and already demonstrated how he operates. It has been nothing but a win win. If done correctly its awesome. Like anything else, have to have the right numbers, location and understand what you are getting. 

[Ashley Hum]

Great if the math works! I'm super picky so I end up replacing most decor etc so it's hard to say. Depending on your market maybe?

[Asif Kabani]

Ultimately, the decision depends on your goals, risk tolerance, and how hands-on you want to be. If you're seeking a hassle-free entry into the short-term rental market and are willing to pay a bit more for that convenience, turnkey could be a great choice. Just be sure to thoroughly research any turnkey provider, check their track record, and understand all the associated costs and fees.

[Henry Lazerow]

Be careful taking advice from people who sell or manage the product. If turnkey cashflowed of course everyone would buy it. The analysis I have seen on turnkey deals is far from realty and more like 0 cashflow real life deals when accounting for long term cap/ex. Even when doing a value add finding cashflow is extremely difficult in 2023 with current rates. By doing a value add you can create equity atleast. 

[Michael Baum]

Personally, most turn key properties aren't quite turn key. They all need something to get the right feel.