Any Feedback on TurnKey?

[Jamie Stone]

I've been analyzing several properties daily, and I can't find a way to make BRRRR work right now. I found one bank-owned property with the potential for a small positive cash flow. I connected with the investor-friendly realtor for that area, who said it was in an area where I would be guaranteed low-quality tenants (so not worth it overall). After listening to the last few episodes of seeing green, I know that market conditions have changed, deals are harder to make for a novice, and bad ones are harder to recover from now.

I keep seeing ads for Rent to Retirement on BP. I know turnkey is not the preferred method of investing since you are tying your money up, but for the sake of getting into something (that allegedly cash flows), is this a route a newbie in this climate should consider? Would I be better off continuing to learn, waiting for conditions to change while watching for a BRRRR deal?

[Zach Lemaster]

@Jamie Stone

We've found turnkey to be a great way for people to get started investing to build a strong foundation, especially if you are looking to invest out of state for any reason.  It provides an opportunity for you to tap immediately into a network that you can expand on over time, learn the rope & ultimately apply systems learned to your own deals if you so choose.  Obviously make sure you are investing with a reputable team, and that the overall investment opportunities meet your goals.  While it is a common assumption that all TK is sold at or above market value, that would not necessarily be true in today's market, especially in the build to rent space (BTR).  RTR does offer many new construction properties that are in good locations, cash flow decent AND have 10%+ of immediate equity allowing you to expedite your investment goals.  This option was not available over the past 2-4 years due to how crazy the market was, but is now.  Just wanted to point that out.  My best recommendation for you is to speak with multiple teams & explore a few different markets to determine who you feel the most comfortable working with.  Then it's all about taking action and staying consistent.  Many people start with TK & go on to build their own portfolios to be a more active investor & many people continue to keep investing in TK across multiple locations if they prefer to be less of an active investor.  Nothing wrong with either strategy as long as you are growing, learning & staying down the path to reach your investment goals.

Here are some other forum threads that talk about TK in general and RTR that may be useful if you want to continue down that path.

Feel free to reach out anytime with questions & best of luck to you on your investing journey!

https://www.biggerpockets.com/forums/92/topics/765347-rent-to-retirement-review

https://www.biggerpockets.com/users/ZacharyCole/references

https://www.biggerpockets.com/forums/44/topics/1058814-first-time-with-new-construction-cape-coral-fl?highlight_post=6055029&page=1

https://www.biggerpockets.com/forums/850/topics/895660-my-first-investment-property-an-out-of-state-deal

https://www.biggerpockets.com/forums/88/topics/1047543-big-profits-from-new-construction-sfr-build-in-cape-coral-fl

https://www.biggerpockets.com/forums/92/topics/983659-first-investment-property-with-rent-to-retirement?highlight_post=5677176&page=1#p5677176

https://www.biggerpockets.com/co/RentToRetirement