Turnkey STR for Sale. Are they worth it?

[Mike Arias]

Once in a while, I see a STR turnkey properties for sale. Assuming that the figures [revenue & cash flow] all are accurate (of course will need to verify what sellers initially post), it seems like they are a good deal. The properties come fully furnished (some sell it separately) but most are already revenue producing properties. Some already have AirBnb reviews. It literally seems turnkey. With some improvements, maybe I can get increased revenue (i.e. better pics or swap out some furniture). The other side to this is why are they selling if this seems to be produce good cash flow?

What am I missing with these turnkey properties? What are things I should double check? I know the location is number 1 to verify. I know how to evaluate LTR and know LTR investments well enough. I know the basics of STR but seems like a turnkey property would be best for me as a first time investor. Any advice would be greatly appreciated.

[Michael Baum]

Hey @Mike Arias a few things to consider.

One, the house isn't worth any more than any other similar comp house. I did a pretty in depth research project and not a single lender (out of 18) that I spoke with would lend more than the comps say it is worth. So don't pay more for a "working" STR.

The furniture essentially has no value but you can work that into the deal after the house price is settled if you like.

You can't transfer AirBNB or VRBO reviews. You will be starting from scratch. 

Past performance is no guarantee of future success. In the end you need to make sure STR's are something you want to get into.