“Turnkey” loosely used?

[Andrew Coulter]

Hi All!

I have been geeked out over the last couple months trying to learn what I can to get started. I have decided OOS Turnkey Providers would suit me best. One thing I keep running into is how loosely the Turnkey definition seems to be used from provider to provider. I envision Turnkey properties to be rent ready, fully renovated with all CapEx replaced and a tenant actively being placed.

Although I have found one or two providers that seem to fit this criteria, I have found a lot more that says their properties have "at least 5 years left on the CapEx items". I have found others that don't look like any renovations have been completed but a tenant is already placed.

Sooo what do you professional investors consider a true Turnkey property? Is there any benefits and downfalls for choosing one type of model over the other, other than the obvious?

I definitely like the idea of purchasing something fully renovated and ready to go for a piece of mind. But when I run the sample numbers these properties are always coming back less attractive than the others (even when accounting for additional expenditures on the properties that will need some type of work sooner than later).

Thanks!