"Biggest mistake" was to do out-of-state turnkey investing

[Alex Silang]

So I'm in the process of looking at turnkey investing. I even made a post about it on BP but it didn't get many responses. 

A blogger I follow is "FIfighter". He's pretty reputable in the financial independence blogosphere and has a decent following. He achieved financial independence around the age of 30 through real estate investing. 

He used to be a big fan of turnkey investing, owning a smattering of turnkey properties. He's owned them for maybe 5 years, which is nice for information because on BP you only getting the newbie turnkey investors.

This is what he said (DGI is investing in stocks with high dividends):

• Dividend Growth Investing (DGI) >>>> Turnkey Investing. DGI is 100% passive, Turnkey Investing is a pain in the ***. Again, don’t fixate on Day 1 numbers. The best DGI stocks start off at 4% yield but the growth rate will surpass turnkeys in no time so your Yield on Cost (YoC) starts to outperform only after a few years down the road. With turnkeys, properties need to be maintained and you can only defer maintenance for so long before those costs come due. Newbies never factor this into mind when doing their initial Day 1 analysis. 12% cash-on-cash return on Day 1 will NOT be 12% in Year 5 (probably)! A property will NEVER perform as well as on Day 1/Year 1! Dividend growth stocks get better with time, turnkey properties don’t! My biggest investment mistake ever was going out of state and buying turnkey properties.

http://fifighter.com/financial-independence/though...

What do you guys think of this? I found this a bit shocking as this is someone who I look up to. He's maybe a top10 financial independence blogger.

Thanks!