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Is turnkey real estate investing actually worth it?

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Julia_2001
Joined:
23.10.2023
Posts: 1644
Topic Starter
07.01.2025 03:07
I've been looking into getting into rental properties, but I don't have the time or skills to manage renovations myself. Turnkey companies seem like a great solution since they handle the rehab and tenant placement, but I'm worried about the lower profit margins. Has anyone here actually bought a turnkey property and seen decent cash flow over the long term? I'd love to hear some honest pros and cons from people who have experience with these companies rather than just listening to their sales pitches.
17 replies in this topic
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Steve_W
Joined:
20.09.2022
Posts: 352
10.01.2025 19:56
The problem with turnkey is that you're paying a premium for convenience. You'll likely never get the same ROI as a BRRRR strategy, but it's a trade-off for your sanity.
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questioner
Joined:
28.10.2022
Posts: 2130
04.02.2025 04:39
In reply to a previous post
I bought one in Memphis three years ago. The cash flow is decent, but the management company they forced me to use eats up way too much of the profit.
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wes_55
Joined:
21.08.2020
Posts: 1289
08.02.2025 21:30
In reply to a previous post
Make sure you get your own independent inspection. Never trust the report provided by the turnkey company itself.
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IdkButIWrite
Joined:
01.05.2022
Posts: 1131
16.02.2025 22:51
Honestly, turnkey is great if you have a full-time job and zero interest in swinging a hammer. Just don't expect to get rich overnight.
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questioner
Joined:
28.09.2019
Posts: 133
20.02.2025 15:10
In reply to a previous post
I'd echo what @user2 said. My management company was a nightmare. They didn't fix a leak for three months and it ended up costing me a fortune in repairs.
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greg_b
Joined:
14.02.2023
Posts: 450
29.03.2025 00:59
Is it worth it? Only if the numbers work on day one without assuming high appreciation. If you need 5% appreciation to make the deal break even, walk away.
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chris_1982
Joined:
29.10.2022
Posts: 613
28.04.2025 01:34
In reply to a previous post
What are the specific markets you are looking at? That changes the answer significantly.
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Yani_Z
Joined:
22.08.2024
Posts: 1249
09.05.2025 09:33
I did two turnkey rentals in the Midwest. One is a cash cow, the other has been a total headache with constant tenant turnover. It's a gamble.
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Kras_T
Joined:
04.06.2021
Posts: 825
28.05.2025 18:35
In reply to a previous post
You're paying for the 'turnkey' label. Usually, that means they bought a dump, did a cosmetic flip, and sold it to you at a 20% markup. Calculate if that 20% is worth your time saved.
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advice_pro
Joined:
24.01.2023
Posts: 522
10.08.2025 00:11
I prefer turnkey for my first few properties. It's a great way to learn the ropes of being a landlord without the stress of a renovation project.
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Milos_S
Joined:
03.05.2024
Posts: 1035
21.08.2025 06:32
In reply to a previous post
Be careful of 'guaranteed rent' programs. They often inflate the rent prices to make the property look better than it actually is.
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simon_v
Joined:
28.07.2021
Posts: 568
19.09.2025 16:58
If you aren't going to be involved in the management, you aren't really an investor, you're just a passive bank account for the management company.
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Igor_Tech
Joined:
24.04.2025
Posts: 184
03.10.2025 21:39
In reply to a previous post
Totally agree with the sentiment about independent inspections. I saved myself from a $15k foundation issue by hiring my own guy.
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jacek_pl
Joined:
26.06.2021
Posts: 420
02.02.2026 21:45
I’ve had a good experience so far. Three years in, cash flow covers my mortgage and a little extra. It's not passive income, it's just 'less active' income.
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demian_l
Joined:
29.09.2023
Posts: 1680
26.02.2026 07:17
In reply to a previous post
Does anyone have recommendations for reputable companies? Most of the ones I find on Google look like giant scams.
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Amelie_Z
Joined:
24.08.2024
Posts: 1318
03.04.2026 04:49
In reply to a previous post
Don't look for companies, look for local property managers in specific cities. Sometimes you can find a local contractor who does flips and skip the middleman company entirely.
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forum_expert
Joined:
24.07.2021
Posts: 1504
08.04.2026 17:45
Just remember that turnkey is a business model for them, not a charity. Their goal is to maximize their profit, not yours.

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