Possible changing strategy to turnkey

[Justin Young]

Aloha BP!

Looking for properties here in Paradise is truly difficult due to the HCOL here. I've read the tip of starting in your "own backyard" and that tip has stuck with me. With that being said, I've been trying to make the numbers work here but many times I would need to come up with an additional $30k+ to break even. My wife is a full-time stay at home mother and I wouldn't want her to work for at least another 2 and 1/2 years when our youngest is old enough to go to a day care (its cheaper than babysitter costs). So I'm pushing to make the numbers work because I wouldn't want to put my family in financial jeopardy. We have really cut back on our costs and are living a great life with higher quality even as we spend less than we used to.

I spoke with my dad about my goals of acquiring long term wealth through buy-and-hold properties and recommended I look into turnkey investments. Not knowing what he was talking about, I decided to take action and research the topic through BP and google. The concept seems very risky but it can make sense with a lot of due diligence and trust in the team. What are everyone's recommendations with getting started in turnkey? What cities to focus on? What qualities do you look for in a turnkey company?

Feeling nervous is an understatement, but I don't want to sit on the sidelines waiting for the right time. The right time is NOW! Even though I'm fairly young (29 years old), I'm acting with a sense of urgency. I'd regret looking back on my life wishing I had done everything in my power to provide for my family and future self. Aloha and thanks in advance.

[Jay Hinrichs]

Justin,,, when it comes to turn key there is no urgency... even Chris C who runs the biggest turnkey outfit in the country will tell you the same thing.. there is always product and turnkey is a cash flow type investment and folks don't buy them for appreciation or expect appreciation generally so to that end the sales prices are pretty flat or level.. its not a situation were if you don't buy tomorrow the 80k turn key next year is going to be 110k.

also a shameless plug for Brie's turnkey-reviews.com site.. this will help you get a feel there are 40 plus turn key companies listed all over the US you can get a real good feel of location cities and product in 30 to 45 minutes on the site then you can hone in from there.

Good luck... make sure you buy quality and remember that most of us that are pretty knoledgable in the space would not recommend 30 to 40k all in properties for an out of area investor.. Unless your buying in a secondary or Teirteary market.. those can work if you choose correctly.. but in a big metro area those types of properties are generally only recommended to those that live there and can self manage.