Turnkey for first investment property?

[Zack Ellard]

What are the pros and cons of buying a turnkey property as my first investment property?

[Chris T.]

@Zack Ellard

Pros

- it is a system you're buying. Just like franchises. 

- some companies offer rent guarantees for a period of time

-you should get a better ROI especially when you leverage with a mortgage.

Cons

-little equity

-lack of control

-what is your exit strategy? 

-you don't learn as much compared to actually buying a house, screening a tenant, renting it out etc.

If you do decide on TK, you need to vet, vet and vet the TK provider. Talk to at least 6 references. 3 provided by them. And 3 clients you can find on BP. Visit their operations in person, visit their properties. Hire an experienced home inspector. GET EVERYTHING IN WRITING.

good luck!