What is a turnkey investment?

I am asked this many times by individuals. What is a turn-key investment & how does it differ than flipping?

Turnkey refers to a sale or supply of goods or services that is for immediate use. In real estate you may have a turnkey investment. A turnkey investment is a property that has been renovated & sold to the end buyer (usually an investor) as an investment property. Most investors use turnkey as a passive income source of revenue since they do not have much to do other than collect the rents.

A turnkey cash-flowing property refers to the turnkey investment that has a tenant in place so you the investor can have a cash-flowing rental income.

You may wonder how does this different from flipping or renovating a house.

Flipping or Rehabbing is where you will buy a house that needs little to complete renovations you invest in the house, the renovations, taxes, insurance & sell the property.

Either way is a great way to make money, it depends on your expertise and your finances. Generally, most people will purchase the turnkey investment so they have cash-flowing property; build a portfolio and passive income.