Originally posted by @Mike D'Arrigo:
@Tom V. I think your question is more about what classes of properties and neighborhoods perform well rather than whether the property is turn key. How you acquire the property is irrelevant. You're going to have the same bad results if you buy in a declining neighborhood regardless of whether the property was turn key or not.
This is SO true!!!
TK vs Wholesale
Auction vs MLS
Cash vs Finance
Everything above has its pros and its cons but at the end of the day a house is a house. How you acquire it doesn't matter. There's great investments and horrible ones and everything in between. So many different factors to consider out side of how it was acquired. Tenant placement and property management can be done a trillion different ways all of which have a great impact in the results.
I do get the point of the post tho.. TK over 10 years. You won't see to many folks on BP talking about properties that they bought TK in 2004 or 2005. I think there are a number of reasons for this...
1. Most " turnkey Companies" or tk operators just started their business with in the past 10 years. I would say a vast majority. I only know of a few that are still around from back then. I bet @Jay Hinrichs could write a book about the history of TK. or already has... :)
2. Majority of the people that bought TK 10 years ago bought from a total sham of a "company" got ripped off and don't care to talk about it. And they probably will never invest in real estate again much less come on a forum and talk about. The investors that did Ok or decent probably aren't all that anxious to come online and talk about it because frankly rental properties are boring and they are only fun in the "honey moon period" when you first acquire it.
3. I think bigger pockets and Turnkey-reviews.com have become the defacto "turnkey operation" referee if you will. In my personal experience I have seen people use those sites to do research and due diligence that would have been literally impossible to do 8, 9 or 10 years ago. And end up doing very well with the acquisitions of there properties.
So.. I think people that bought "turnkey" back in the day, in general, probably didn't do so hot because of the fact it was a brand new industry with very little competition and even less info on who the companies are, what their history is, what the area is like, crime rates, price comps, rental comps, etc, etc.
Everyone that has offered advice on this site or a review on Turnkey-reviews.com has helped shape this relatively brand new style of real estate. So.. Its not a type of house.. its a style of doing real estate investing.
The term "turnkey" has a bad history to it but I think with the speed of information being traded and the amount of competition popping up lately the market will indeed correct itself and level out in favor of the individual investor.
The info is now there... if one does the proper research and finds the right team they should be just fine.
Just some thoughts. end rant.
