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Updated almost 5 years ago on . Most recent reply
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Huge Turnkey Assumptions on my part...
I searched and read lots of turnkey posts in these forums before I wrote this post. Lots of great info from very knowledgeable folks. It has helped immensely.
I am going to be making lots of assumptions here...
Assuming the turnkey company is top notch, has boots on the ground, knowledgeable with that respective area, has integrity, good tenants, and the area chosen has a healthy or growing market...is the only downside lower ROI and Monthly income than if I did most of the tasks myself or parts of it myself? In other words, if most or all of my assumptions were accurate (I know that's a HUGE assumption) wouldn't the buyer be in the positive, even if it was by a small margin?
I am new so I am still trying to wrap my head around all my options. And I admit what I propose is theoretical, just trying to understand conceptually how turnkey should work.
For the record, I am not being lazy wanting to turnkey. In my situation it may make some sense to turnkey for the next few years. Just trying to understand. Admittedly, being brand new to real estate I am still all over the place and have questions I am sure I will be laughing at a year from now.
Most Popular Reply
People always ignore another halfway option. Purchase from an existing investor. You won't pay the turnkey markups and get a tenanted property. You will have the PM in place, which is anyway the most important part of the system. Property will have insurance, actual taxes will be known etc etc. The one downside is that its not a freshly rehabbed property. But you can get a record of recent items done by the current owner. I bought several that way and sold several as well.