Turn key or BRR in Philly

[Rami Kaffezider]

Hello,
What are the differances between Turn key and BRR and where are good ereas for each stratagy ?
Thanks

[Tim Orenbuch]

The area where the property is located is not the key to the strategy. The key to the strategy is finding value in a property. If you are using the BRRRR strategy, you need to find something that will be worth more than the buy cost + rehab cost once your done. That's ideal. If you find something equal to the cost of buy + rehab, that's good too, because a lot of people can't do that because they overs spend on the buy side, on the rehab, or both. In terms of turn key rentals, you'd like to find something that rents at 1% of the cost of the property. For example: a $150K property should rent for $1500/month.

I'm a Realtor, and I hear "You gotta be in Port Richmond" or "You gotta be in Fishtown" or wherever. That's nonsense. "You gotta find a property that has good value." That's the key. 

I'm happy to help if you'd like to talk. Tim Orenbuch, Realtor, Berkshire Hathaway Jenkintown