All Forum Posts by: Dominic M.

Appreciate your response, Melissa. For the sake of playing devil’s advocate—and to provide clearer context—I wanted to lay out a side-by-side comparison between (a) the traditional turnkey model and (b) a creative financing-based model, let's refer to this as “turnkey with creative deals.” This comparison highlights some structural differences in risk, market access, financing, and long-term outcomes. 

Traditional Turnkey Model: Limitations & Risks

• Primarily limited to low-cost Midwest markets with lower property values and lower rental rates.

• Typically involves older properties in aging neighborhoods—often post-war builds—with dated infrastructure (HVAC, roof, electrical, cast iron plumbing, crawl space issues, structural settlement, etc.). Rehab risk is material, even with seasoned operators, especially when the aforementioned items are not replaced.
  

• Commonly leased to Section 8 tenants. While this can stabilize rent, it also brings numerous downside risks.

• The end buyer typically pays market value with guaranteeing higher-interest debt.

• Fully amortizing loans start from Day 1.

• Financing process includes lender underwriting fees, origination fees, and most commonly a 5 or 3 step down prepay penalties—often adding friction and cost.

Creative Turnkey Model: Flexibility & Upside

• Expands into markets where traditional turnkey strategies don’t pencil—often, higher-demand, appreciating areas.

• Focus is on newer vintage homes in desirable neighborhoods, often requiring minimal or cosmetic repairs.

• Higher rents, higher income tenant profiles, and fewer capital expenditure surprises.

• Structures like seller financing and subject-to allow for:

  • No bank financing needed → no origination fees, underwriting hurdles, pre-pay penalties or lender-imposed constraints.

  • No personal debt guarantees required in most cases.

  • Often access significantly lower interest rates than current market levels.

  • Buyers benefit from “seasoned” loans—amortization may already be 2–7 years in, increasing principal paydown velocity.

Subject-to deals as opposed to seller financing carry due on sale risk and must be ethically and transparently structured—The due on sale clause risk exists, and both seller and buyer need disclosure and to be aligned on expectations and risks.

Everyone’s investment thesis is different, and there are pros and cons to both approaches depending on the investor’s risk tolerance, capital structure, and long-term goals.

That said, while creative financing offers meaningful upside—particularly in today’s high-rate environment—it can also introduce confusion. The structure itself, while powerful, may overwhelm less experienced buyers. Instead of focusing on the asset, they get lost in terminology, deal structure, and risks whereas the traditional turnkey model offers a simpler broadly understood approach.

I'm looking to get a real conversation going around turnkey property investing — especially from folks who’ve actually used these companies.

What are the real pros and cons you’ve experienced working with turnkey providers?
Not just the theory — I want to hear the good, the bad, and the ugly. Did their promise hold up? Were the rehab numbers solid? How was the property management? Any surprises post-close?

Also — are there any turnkey providers with creative finance deals?
Would seller financing, subto, hybrids, etc. be preferable to the traditional financing/ turnkey providers? 

Lastly — who would be interested in turnkey deals that aren’t strictly conventional financing?

Let’s get into it.

If they receive official orders they are allowed to break the lease. 

The number of listings increased by 76 from February 2024 to February 2025.

This shows a 7.81% increase.↗️

The listed median price decreased by $40,000 from February 2024 to February 2025.nThis shows a 5.88% decrease.⬇️

The number of units sold decreased by 199 from February 2024 to February 2025. This shows a 31.29% decrease.

The sold median price increased by $60,000 from February 2024 to February 2025. This shows a 10% increase.

Mortgage Rates:

February 2025: 30-year FRM = 6.76%, 15-year FRM = 5.94%

February 2024: 30-year FRM = 6.94%, 15-year FRM = 6.26%

The increase in sold median prices shows that actual sale prices are up year over year. Higher mortgage rates in February 2024 compared to February 2025 may have impacted the sold median.

The residential lease market in Arlington County, VA, from January 2024 to January 2025 has experienced some changes:

- Units Listed: The number of units listed decreased by 1, a 0.64% decrease, from 157 to 156.

- Listed Median Price: The listed median price increased by $75, a 2.78% increase, from $2,700 to $2,775.

- Units Leased: The number of units leased increased by 9, a 6.67% increase, from 135 to 144.

- Sold Median Price: The sold median price increased by $75, a 2.68% increase, from $2,800 to $2,875.

A slight decrease in units listed indicates a minor reduction in supply year over year, while an increase in units leased suggests a rise in demand. The increase in listed and sold median prices indicates that rental prices are trending upwards. This could be due to a variety of factors, including market conditions and changes in demand.

Interview a number of tax attorneys and get personalized advice for your exact situation. 

Ask them for their criteria so you can find deals for them. 

Ask local title companies for connections. Go to local real estate investor meet ups. Skip trace cash buyers and call them. 

That's probably too much to unpack in one thread. I would select one marketing method and become an expert at it. Get a script, role play, and master it. Underwrite 100s of deals so you understand what your max offer is. Can probably spend weeks just diving into these 3. 

@Bob Wolf we are tracking the YoY trends closely with MLS data, as opposed to the fear-mongering/ clickbait that's out there. But exactly, it's too soon to tell right now, all we can do is keep our finger on the pulse for our own portfolio and for our investor clients.