Is success with turnkey properties actually possible?

[Michael Perry]

So I've been looking at different options to get into the rental real estate arena and for someone who works at a senior management level with a full time job it seems that Turnkey properties would be ideal to at least start out with and start attaining cashflow but I've read good things about TK's and not so good things. My real questions are:

1.) can one actually get real cashflow from a turnkey? 

2.) Is success with TK's something that is just theoretically possible but highly unlikely?

3.) What about exit strategies? It seems for a TK provider to actually make their own money and be successful then their markup would put you in the retail price realm which leaves very little equity if any to start and it seems the properties in the areas that many TK's operate in have a very slow rate of appreciation so how do ever really increase your true net worth or implement a true BRRRR strategy?

I apologize if these questions are very naive, I'm just trying to understand and vet my options for entry into buy and hold very carefully.

Thanks in advance for any time taken to provide info and guidance, it's appreciated.

[Tom Ott]

Originally posted by @Michael Perry:

So I've been looking at different options to get into the rental real estate arena and for someone who works at a senior management level with a full time job it seems that Turnkey properties would be ideal to at least start out with and start attaining cashflow but I've read good things about TK's and not so good things. My real questions are:

1.) can one actually get real cashflow from a turnkey? 

2.) Is success with TK's something that is just theoretically possible but highly unlikely?

3.) What about exit strategies? It seems for a TK provider to actually make their own money and be successful then their markup would put you in the retail price realm which leaves very little equity if any to start and it seems the properties in the areas that many TK's operate in have a very slow rate of appreciation so how do ever really increase your true net worth or implement a true BRRRR strategy?

I apologize if these questions are very naive, I'm just trying to understand and vet my options for entry into buy and hold very carefully.

Thanks in advance for any time taken to provide info and guidance, it's appreciated.

Hello,

Yes! Turnkey can be a great investment, but honestly do your research on the market and the company. Some people don't even own the property or do any work to it, they just find properties on the MLS and call it "turnkey" because it does not need a lot of work. People throw that word around without understanding what that means. Also, always get an appraisal/inspection done. These providers should stand by their price and their word. Do not be scammed by people trying to make a fast dollar.

Also, please look at:

How to Find the Right Turnkey Real Estate Investment Company for You

-and-

The Best Types of Markets for Profitable Turnkey Properties

This should give you some good information to get started. Good luck to you!