Condo vs Fixer Upper vs Turnkey
Updated: Jun 6, 2022
Upside not as big as a fixer-upper when buying a fully renovated property with market rents.
Pros and Cons.
· Great first rental property for the novice buyer that won’t break the bank.
· A low maintenance property that won’t take up too much of your time.
· Straight forward valuation and financing with good cash flow.
· The condo boom, potential for too much inventory for rent.
· Less bang for your buck (square footage) compared with street rentals for the same price.
· A large demographic prefers a street location in a community with green space.
· Lower purchase due to poor condition.
· Great for a handy investor with vision and some spare time.
· Opportunity to renovate units to your own specs.
· Below market rents with huge potential for increased cash flow and high market value.
· Purchase requires more cash than normal due to low cash flow and valuation.
· Low rents equal long-term tenants. Patience is required to renovate units and raise rents.
· More frequent maintenance issues.
· Perfect for the high-income investor who wants diversification with steady returns.
· Quality tenants, market rents, high market valuation and zero headaches.
· Lower CAP rate and higher purchase price.
· Upside not as big as a fixer upper when buying a fully renovated property with market rents.