Turn Key properties

[Joe Strickley]

This is my first post here (apart from newbie intro'). I thought I'd kick off with a question on investing in units with existing leases in place. To me they have an obvious advantage; you can see what the cap rate actually is, as opposed to a broker telling you what you 'might' get. In these times of higher vacancy rates, it gives you breathing space while you wait a recovery, and it also saves having to find tenants. On the downside, you may be inheriting a headache, as you didn't screen the tenants yourself, access to inspect the property may be a hassle if you have to ask each tenant each time, and just how verifiable are income and expense statements?

I'd be interested to know what positive, and negative experiences others may have had.