Pros and cons of buying turnkey

[Dennis Crawford]

Hello BiggerPockets I am a NEWBIE!!!! I have been doing a lot of reading and podcast listening(BiggerPockets of course) over the last few months. I have been hearing some advertising for turnkey companies that are selling the properties, have renters and will manage the property for you. I am wanting to get feedback on this approach to get into real estate investing to start with. Please let me hear your thoughts on this subject, thank you.

Dennis Crawford

[Greg Miller]

Pros:  you earn cash flow right away, the tenant is already in the property, the property has been fixed up

Cons:  someone else made a margin off the rehab that you do not receive, the property might not be fixed up the way you would have done it, you do not select the tenant

Thoughts:  this might be a good starting point to gaining knowledge, earn cash flow, and be a hands-off investor

As for myself, I like being hands-on and overviewing the contractor and several key subcontractors.  I get to fix up the property to my liking.  Then, I turn it offer to our property management company to find & place the actual tenant.

Greg