Turnkey Properties

[Kwame Searcy]

Hello everyone,

Are turnkey properties just homes that don't require any work to be done to them? What are the cons of buying a home that doesn't need work as a rental?

Also, I've seen a lot of properties for sale with tenants already in the, I'm a little skeptical as to why someone would want to sell a cash flowing property. So what are some pros and cons to buying a home with a tenant already there? I get this feeling people are trying to dump a negative flowing property or a bad tenant.

[Colin Smith]

Yes, turnkey are properties that you could move into day 1 of buying. I wouldn't necessarily say there are cons to it as everybody is a little different, however, you may get that immediate fixed appreciation when you fix up the property yourself. 

There are a lot of reasons why people sell a property with a tenant already in place. I had a client who became an accidental landlord and just wanted to sell so they could buy their next home for themselves. The pros are that it will start cash flowing from day 1. The cons are you could inherit some really bad tenants so better be weary of who they are.