Rehab vs. Turnkey in Atlanta Metro

[Brian Penter]

Hey BP community,

Long-time listener, first time caller. My wife and I are looking to get into the game by purchasing our first rental property. I've read the books and know that generally the most upside is created by buying a property that needs work and rehabbing it. However, given the current market conditions, it sounds like rehab projects can take a long time right now and costs are up, due to supply shortages, etc. Taking on a big rehab for our first one is also a bit intimidating. 

Due to that, starting to think that buying something that's move-in ready could be the smarter move. Has anyone had success buying turnkey properties in metro Atlanta? Curious if anyone else feels the same way re: rehab timelines and costs right now?

Appreciate the help!

Brian

[Brenden Mitchum]

Hey @Brian Penter, welcome to the BP community!

You're absolutely right, rehabs right now are tricky. Unless you have a trustworthy GC/rehab crew, you'll easily find yourself over-budget and blowing past deadlines. 

However, finding turnkey cash flow right now in Atlanta is pretty tough. I'm always hesitant to use the "i" word (impossible) but welcome anyone on here to chime in about a turnkey cash flowing rental they've purchase in the MSA in the past year. 

So, maybe a big rehab is a bad idea and maybe turnkey won't work out either. Perhaps something in between? A job that, worse case scenario, you could sub out the work yourself and still get it done within a reasonable timeframe. You'll still have a hard time finding something at a price that allows for decent returns, especially if you're looking on-market. If you're real serious, you may want to market direct to seller. Not many good deals are going down right now to small investors who aren't working their tails off and/or getting creative. 

Hope this helps a bit. Please, feel free to reach out anytime if you have other questions or just want to chat about the ATL market!