Do you perfer investment properties that need work or turnkey?

Question

With investing there is always the question on condition of the property verse price.  What type of investor are you?

What is the biggest mistake with investing that you will never do again?

Andy Luick · Answer

We only purchase properties needing work...usually substantial work which we do internally.  We rarely complete retail flips....once in awhile....most of what we do is buy and hold rentals.  There are still deals out here....at least in our main market of atlanta and most are private sourced to us.  A good chunk are failed rentals that previous owners could never cashflow.  Price points for us are $35k to $400k so we are in different segments and areas of our metro market.

Dan Perrott · Answer

I like properties that need work.  Having the ability to add value to the property through sweat equity is something that I enjoy.  As the market gets tighter with fewer great deals available, finding the right deal has become harder.

In all cases, I look for deals that are at least 1.7% properties.

Willem Young · Answer

Depends a lot on how active you want to be.   A lot of turnkey investing is done out of state.  An out of the area investor in my opinion shouldn't work with a fixer upper.  There is way too much room for problems.   We target fixer uppers so we have a completed property with equity and reliable construction done by ourselves we can count on for the long term.

Russell Brazil · Answer

I prefer something that needs minimal rehab. Im just looking for a good return these days, I dont need a home run.

Tyler Bernhard · Answer

I think it depends on the current market. In a buyers market I would be comfortable purchasing a turnkey property that doesn't have much equity. I would be the market will change in due time to a sellers market and I would capture equity at a later date.

If I was in a sellers market I would prefer to purchase a lesser valued property that may need some work that needs to be done in order to capture some of the equity right off the bat.