Buying Second Turnkey

[Account Closed]

I currently have one SFH located in Little Rock, AR purchased via turnkey. My long-term goal is to build a rental property portfolio that will ultimately exceed my earned income.

I understand turnkey properties come with a premium.  Based on my experience from the first purchase, the process was pretty streamlined and cash flowing from day one.  This worked well for me since I am investing OOS and have limited time due to working full-time and running a side business.  

What are your thoughts on buying multiple turnkey properties?  Any thoughts would be greatly appreciated.

Thank you.

[Frank Wong]

Every time I read something about turn keys there seems to always be a debate on turn keys not being great for investors. I don't think that is correct. On one hand, I get the argument that buying a turn key does not allow you to do BRRR. But what if the investor is not looking for that?

The investor can be looking for a rental property that can give them a monthly income right away and doesn't have to wait a few months for rehab.  The investor also doesn't have the "time"  to vet all the contractors, look for finishes, deal with delays, and get it all done within their budget.  Maybe the investor is smart to understand that the best use of their time is to do what makes them the most amount of money while allowing the experts in the field to do the labor-intensive work to complete a rehab.  

In Jeff's case, they are rehabbing multiple properties.  They have economies of scale and will be more efficient.  They are probably getting things done cheaper than a new investor. There is also no free lunch in this world.  Why can't a turn key operator turn a profit?  You are paying them to save yourself time.