1 BRRRR or 3 Turnkey??

[Steven Barros]

I am ready to buy my first real estate deal. I have chosen my stragety of buying Duplexes, Tri's, and Quads. I have heart for multifamily RE.

What are BP members thoughts on wether to buy 3 turn key over the next 6 months. or buy 1 BRRRR stragety duplex? I have the ability and contacts to do both.

My goal is to start building extra passive/cashflow. 

Thanks!

Steve

[JD Martin]

Depends on your abilities. With turnkey, you are paying to play. BRRR is your sweat equity entry, even if you hire everything out.

My opinion/viewpoint only, but a lot of TK are properties that have minimal/no/negative cash flow and are marketed to newbies. These may be unsuccessful flips or homes specifically designed for the purpose. In those cases, you are banking on appreciation that may or may not materialize. If a property has strong cash flow, appreciation can theoretically be zero, or even negative, and you will still make money.