Originally posted by @Derek Clifford:
I consider turnkey rental properties as training wheels. You never hear about the most successful investors out there buying turnkeys, but rather, owning companies that sell them.
On the other hand, it helps you understand the process of buying, analyzing, and managing a property and property manager. I'd consider doing it purely for what you'd LEARN from it, now how much you'd profit - that comes later as long as you don't make a very bad buy (less than 1% rule). Warren Buffet says that "the only investment that NEVER goes down in value is knowledge."
You want to make sure you keep your motivation up and move the needle a little bit in the positive direction, and a turnkey could nudge you and motivate you to do something yourself once you start understanding how much you're paying for the convenience. It will also provide a benchmark for you for what a "successful" rental should "feel" like.
There's a guy here who said he funded the operators.
But when people ask if TK rental is good to buy he won't affirm it is.
