The Turn and BRRRRN - Don't Turn Around... BRRRRN

A new investor or an investor to a new market feels out the market by buying turn key for the first or first few properties to test out the “team” that is in place there. This gives them an opportunity to feel out their agent, the rental market, the property manager, and likely even the contractor. For the new investor they would also learn things like how to purchase a home, who the key players are, how they would like their rent deposited, and how to set up an automatic payment for their mortgage. Once their pipeline has been established and the investor feels confident in the team, they then begin to approach BRRRR deals and put them into the same pipeline as before with the addition of the rehab and refinance or delayed financing.

Turn Key does not mean that you cannot be creative.

• Purchase below market value
• Look for lower LTV rates with lenders to save down payment money
• Look for value add opportunities that will let you increase rent and force appreciation
• Wrap closing costs and rehab into the loan as much as possible