Are Turnkey SFHs passive or hands off investments?

[Matt R.]

IMO it might be a bit of a fantasy that somehow this type of investment is going to be truely passive or actually hands off. I know some TK promoters use these buzz words to help sell and create an investment picture but it is misleading at best. If one has to pay taxes, insurance, maintenance, capex, travel, evictions, mortgages, lease up fees, deal with PM and the rest that is neither passive or hands off. It may qualify as passive for IRS concerns and that's about it in reality. Many TK promoters really could adjust what they are presenting to new investors. It is just not kosher to represent these as hands off investments to newbies. Perhaps a something like a reit is 100% hands off instead. Random long distance SFRs or duplexes, tris, quads will never be. The reality of the liabilities just does not make that possible.

Agree or disagree? Thoughts or comments?