In a previous blog, we looked at the difference purchasing a more modern investment property vs purchasing an older investment property. In this blog, we will take a similar topic: turnkey properties vs DIY properties.
Although those are the two ends of the spectrum, those are not the only two options; properties can be purchased in any condition in between. The bottom line is that it depends on what the investor’s comfort level is.
David Greene authors an article on BiggerPockets, entitled, “Choosing Between Turneky & DIY Rentals? This is a MUST-Read Before You Decide.” In it, Greene highlights some factors to consider prior to making that purchase, including:
How much of a “cheapskate” an owner is - will an owner do only what is necessary, and bear all of the burden themselves?
How much work is an owner willing/able to do - does the owner wish to hire outside help to handle every part of the process?
Understanding the options based on the above answers - based on what level the owner wishes to be involved may limit options for purchase
How to determine which option is best for a particular investor - figuring out the current level of knowledge or interest an owner has, and whether they plan to obtain more, will aid in this decision
Greene’s final bit of advice: “Find your sweet spot. Get your hands dirty. Jump in, learn, and get the most out of what free websites like this offer you. They may not be free forever! Pay the price to learn the business and reap the rewards later. Don’t shortchange yourself or count yourself out because it feels overwhelming or awkward. Believe in yourself and these resources. Value learning over earning.
To read the full BiggerPockets article, click here.