Long-Distance, New-Build, Turnkey Investment Rentals: Pro/Cons???

6 Replies

Long Distance - Pros: You have a larger pool of properties to choose from as you are looking anywhere in the country. Cons: Harder to establish yourself in a remote area of the country, more work up front to get started. 

New Build - Pros: Low maintenance/cap ex costs, higher rents, higher resale value. Cons: Construction costs are prohibitively expensive right now, dealing with contractors is a pain in the butt, good amount of up front work and costs with permitting and design.

Turn Key - Pros: Property is renovated, rented/ready to be rented, little to no up front work, often comes with property management in place. Cons: The returns are significantly less than most other forms of real estate investing as a result of the little work the investor needs to put in.

Nice perspective - thanks. Bottom line: Can the con of "significantly less" returns be remedied/compensated by increasing one's inventory of properties (portfolio size) - all while maintaining all the 'pros'?

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