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Updated about 7 years ago,
Need advice on BRRR or Turn Key
Hi all, I'm in need of some outside input (from you!). I have the opportunity to invest in two markets, but not at the same time. I'll have to choose one to invest in first. I'd like to put the question to you all and see what you think. Here are the two options both in different states (which really makes no difference to me):
1) BRRR strategy. Initial investment $70,000-$130,000. Will be able to renovate and rent out in approximately 8-10 months then refi and reinvest after that. The approximate cash flow after expenses is $500/mo
2) Turn Key. Initial investment somewhere around $130k depending on the property we choose. Rent approx $1200/mo. with a cash flow of approx $250/mo. Can invest and start making this cash flow today as opposed to option one which is at least 10months out.
So, what do you think ? I'm able to get to both markets easily (with in a few hours flight) and both companies that will do the work and manage the property are vetted and reliable. All things being equal, what would you do and why? Thank you for the input!