All Forum Posts by: Jonathan Oh

Couldn't agree more. I always try to stay close to the median. I see so many people buying dirt cheap turnkeys thinking they got a steal. And then they get slammed with turnovers, evictions, etc... its like what did you expect?

@Nick Troutman

Take everyone's comment with a grain of salt, including mine. A lot of people on BP will tell you that turnkeys are terrible and that you could get better returns by doing what they do. What they don't mention is that they aren't traveling 6-10 months like you are. You have a different lifestyle and have different needs. There is nothing wrong with investing in turnkeys, just like there is nothing wrong with non-turnkey investments. Every type of investment has its pros and cons, and you need to decide which one has better pros for you. I personally invest in turnkeys and properties needing small touches. I know those strategies don't bring the highest return, but they are perfect for what I want and what my goals are - not others. And if you buy some turnkey properties today, I doubt the same people telling you its a bad idea will tell you so in 10-15 years. Hope this helps!

@Kalen Jordan I agree looks very much like a C from what I've seen in KC. Doesn't mean it's a bad deal however. Don't compare it to Dallas however. Property taxes are much higher there, which means more funds to pay for city infrastructure.

@Colton Webber

Finding trustworthy partners/vendors/companies to work with is definitely important. But what's more important than that is to understand the fundamentals and how to know whether a deal is good or not. A bad deal for one person can be a good one to another. Determine what your goals are and what you need to do to get there. It sounds like you want to take a passive approach rather than active (which most people on BP do). For passive, you may want to consider syndications or turnkey rentals. I invest in both so feel free to reach out to me with any questions.

@Ahmed Youssef On a side note, it is quite strange that the turnkey company is making you pay for the tenant placement fee. These are the types of things that make the word turnkey so broad. On the flip side, it may be better that you have a 3rd party PM. I've found that in house PMs are not always the best.
 

@Phillip Henry

If I was you I would first pursue a property needing cosmetic or light rehab. BRRRR is awesome for sure, but like you said you're going to need more capital. Another solution to this is to get hard money or possibly conventional, but that will depend on if you can find a lender to work with you on that.

@David Katz

I don't quite agree with PM having to be in house because I've had to fire some of them on my own turnkeys. I was going to give you a list of reasons why, but @Jeff Schechter post above pretty much sums up my thoughts.

@Eric Skinner

You can also check out syndications or doing your own BRRRR. Both can get you in OOS markets. Turnkeys are not too good to be true. The biggest downside is that the sweat equity is already taken by the seller. In addition, turnkeys for the most part will be price at market value. The reasons most people invest in turnkeys is because they don't want to or have the time to find a deal and manage a rehab without making mistakes. If you're looking for just looking for a place to put your cash for a long term hold, then turnkeys are great.

@Jason Theus Yes, I have. They have been performing well as expected.

Agree with @Todd Rasmussen. Turnkeys aren't the fastest ways to reach financial freedom, but if you scale correctly it's definitely possible. Its a great alternative to start for beginners