Thoughts about Turnkey Investing

[Jennifer Shen]

Hi, I'm currently looking for my first investment property. It seems to me Turnkey properties will be the fastest way to get my portfolio started. Wondering...what are yall's thoughts on turnkey properties? Are the numbers that the company give you reliable? i.e. monthly cashflow. What are some ways to find a reputable, trustworthy turnkey company?

[Jeremy H.]

This is a question you need to answer yourself depending on the type of investor you want to be. 

A turnkey company will charge a premium for marketing, advertising, locating the property, rehabbing the property, placing the tenant, managing the property etc. Their numbers will be biased in their favor - ie: underestimating vacancy, repairs, Cap Ex etc. But there's a good chance they get you into a property in a good location too. 

I can locate a property, buy it, rehab it and get a lot more cashflow myself than going turn key. I am a hands on investor though, I enjoy getting into the numbers, managing rehabs, my own deals, etc and seeing it all work out in the end. Also, I want more $$, so I cut the middle man (which is essentially what a turnkey company is). It's a different type of investment.