“Life is really simple, but we insist on making it complicated.” ~ Confucius
Guess what? Investing doesn’t have to be this wildly complex, insider-only thing that people often perceive it to be. It can actually be mind-bogglingly simple. Yes, really. Just like life, investing is what you make it. It can be as complicated and stressful as you make it – or it can be as simple and beautiful as you want it. What do you want? Simple – buy a property and start making cash-flow? Or do you want to buy a property, rehab it yourself and attempt to flip it? If you love stress, the second option is for you. If you love cash-flow, take a second look at option one!
The Stress Option
Unless you’re a master at keeping stress at bay, investing in a fixer-upper for a lower price is going to yield your fair share of complicated situations. When you buy a fixer-upper, you simply don’t know what you’re going to find. What’s underneath the carpet? Why did that pipe burst? No electricity upstairs? Yikes. You need to be expecting these things to happen, budget for them, and know how to fix them. Do you? Yes, you can make money fixing and flipping – but it’s not exactly easy. You really have to work and plan for it. If you’re game, this option may be for you.
The Low Key Turnkey Option
If you love keeping things simple and laid back, investing in a ready-to-rent or turnkey property is a great idea. You buy. You rent. You collect. You enjoy the things you love. Your property manager keeps tabs on your property, takes notes on things that could be issues down the road, deals with tenants and the rental process – and generally serves as your eyes and ears so you can do other, far more fun things. Amazing, right? Turnkey investing really can be that simple.
Key Takeaway: The Best of Both Worlds
If you want a great price and a great life, it’s important to find a turnkey home in the right market. You want to strike while the iron’s hot. Sure, you will pay more than a fixer upper in said market – but you don’t have to deal with contractors, little expenses that add up fast, big expenses and unknown issues that could bubble up at any time. Buying a turnkey in an expensive or bubble market isn’t going to bring you the highest cash-flow you want, so work with people in the know to find the right property and the right town to buy in. At Hipster, we always advocate for quality markets, quality homes and quality investing experiences (plus quality cash-flow, of course).