Turnkey versus Adding Value

[Marisa R.]

I think about 6 months ago I would have said stay away from turnkey, however its still very much dependent on the price you pay for turnkey product.

There are many turnkey operators in US that are charging way too much for their product, they will remain nameless, and it will take years to make this money back.  

I wonder why investors still buy over priced properties? very strange? Is it convenience, is it because they have not done their homework and looked closely at comps? Is it because they need someone to hold their hand??

Yes, its nice to have a properties already  rehabbed and rented, with tenant in place, but not if you are paying above market value.  

On the other side of the coin, if you can find properties that are a little tired and perhaps need a minor make over this can be a big win, shorter time frame to rent. This seems to work well. 

[Nicole Hoss]

Hey, @Marisa R.! I buy OOS TK because I am a buy/hold buyer. Market value, I have learned, is just what people are willing to pay for a property. By purchasing TK, am paying someone else to find reputable contractors to completely the rehab, do all the work to make sure that it will have a good inspections, vet and place a tenant in the property all before I have to purchase it. Oh, and the TK company also has to cover the holding costs associated with rehabbing a property. To me, this is all worth something and I don't mind paying the TK price as long as my numbers still work in the end.