Queens, NY · Member since 2023 · 13 posts · 1 vote
Here's my dilemma
I am thinking of purchasing a turnkey property in the name of getting some cash flow going. As of now I am going to do a cash out refi on a property that I've had for 5 years to put down on something ready to rent and potentially already rented. I am doing it this way mainly because I don't think I have the experience, knowledge or team in place to do something like a BRRRR or a fix and flip, but I don't know if this is the right way to go.
I would ultimately love to start scaling up and think I want to do it faster than something like this would allow because I would have to wait for probably a year or two to raise the capitol to purchase another property.
Anyone else going through something like this or have gone through it before?
I am thinking of purchasing a turnkey property in the name of getting some cash flow going. As of now I am going to do a cash out refi on a property that I've had for 5 years to put down on something ready to rent and potentially already rented. I am doing it this way mainly because I don't think I have the experience, knowledge or team in place to do something like a BRRRR or a fix and flip, but I don't know if this is the right way to go.
I would ultimately love to start scaling up and think I want to do it faster than something like this would allow because I would have to wait for probably a year or two to raise the capitol to purchase another property.
Anyone else going through something like this or have gone through it before?
Thanks friends!
If I'm understanding correctly, your dilemma is between buying turnkey or attempting a BRRRR? I think it depends on where you're looking and the deals you can find. Afterall it's all about the numbers anyway. If you're investing out of state/long distance, I would strongly recommend turnkey properties with professional property management. Trying to manage a BRRRR or flip from afar already gives me a headache thinking about it! Obviously, it's not impossible. People do it and it's successful, but you should be ready to devote a ton of resources and time to it if managing this yourself. Also, super important to be honest with yourself about how long of a vacancy period you can afford during this period of renovations.
Investing in turnkey properties will also allow you to diversify into different markets plus scale quicker. I currently work with a company that sources properties based on your criteria, they renovate, manage budgets, place tenants, and professionally manage the home and all of this has allowed me to scale my portfolio rather quickly. 3 homes in the last 1.5 years in Texas and Georgia.
Residential Real Estate Investor · Kansas City, MO · Member since 2014 · 10k+ posts · 5k+ votes
3y
Turnkey is a pretty passive way to invest. Even if you can't fully BRRRR out, as long as you can get a decent deal and some built in equity, then you would be better off than a turnkey which rarely has any equity and sometimes even has disequity. If you want to scale up, turnkey isn't the way to go IMO.