Is Turnkey approach a recipe for disaster now?

[Matthew Terry]

Greetings BP Mates,

I hope everyone is staying healthy and prosperous during these intense times.

I'm still a beginner in my investment journey (only 3 SFH) and it seems like the most accessible investments are turnkey providers who sell almost fully renovated properties and provide the management as well. Providers that find compelling deals with the opportunity to capture equity are largely tied to long-time customers, in my experience.

Considering there are 0% real yields on almost anything but REI and business investments and my personal view is that the stock market is at extreme risk of imploding, and the dollar is losing value, it only makes greater sense to store wealth in real estate.

However, it seems risky to do it in turnkey. To pay top dollar or higher for the property and base ROI in top market rents is a potential recipe for disaster during these uncertain times and for relatively small capitalized investors.

We have a very long 42 days until political reality is mandated. We don't know who will control the senate and therefore tax policies. We don't know when there will be more stimulus. We don't know if forbearance programs and eviction moratoriums will resume in January. We don't know how well vaccines will be distributed or even adopted.

Are you all disregarding these unknowns with potentially massive consequences to ROI over the next 2-4+ years and just being more careful? Are most people hoarding cash? Or do you not care what happens in the near to medium term, you just feel REI is the safest place to store wealth and 20+ years will eventually return good results? It would be great to hear from investors who use turnkey providers because of convenience\ease or the perception of less risk.