So you’ve decided to purchase real estate as an investment opportunity. With so many success stories of how people increase their income or create a reliable source of passive revenue, there’s no wonder you want to get in on the game. Now comes the decision of whether to purchase a turnkey home or flip a property for a large return on your investment. Both options certainly have advantages and disadvantages and we’ll share some insight that can help you decide which opportunity is best for you.

Turnkey Real Estate

If you’re more interested in purchasing a property that can create another stream of income almost instantly, then a turnkey property is probably your best choice.

Minimal Hands-on Involvement Required: You can purchase online, site unseen and never even step foot on the property if you’re open to paying a property management firm to oversee the details. And, if there are already renters in place, you can begin making a passive income with very minimal hands-on involvement, meaning you can travel or live anywhere without having to dedicate physical effort or hours of spare time.

Benefit from Networking with Property Management Firms: Property management organizations have insider tips and are very knowledgeable on the local markets, which can prove beneficial when deciding on a neighborhood or general area.
High ROI: Assuming your purchase decision is a good one, you will reap the rewards of a higher ROI in the long run. Typically, turnkey products provide extra cash as long as you have quality renters, the property management team is trustworthy, and there are no major renovations necessary.

Fix and Flip Property

If you or a partner are talented in property renovations and want to purchase a less expensive property that can be improved with plenty of hands-on work, then fix and flip may be the way to go. Flipped properties can rake in a large lump sum profit in a matter of weeks, if you know what you’re doing and are able to turn it around quickly to sell.

Big ROI: With enough funds to purchase a property and do the necessary upgrades, a short-term investment can result in several thousands of dollars in your pocket fast.

Investment Options: If you’re low on funds but want to get into the real estate investment game, a fix and flip opens the door of opportunity in finding other investors that like you want to make some fast cash.

Great Way to Learn the Market: Fixing a property will enable you to dive into the local market and become familiar with what’s popular in an area as well as connect with local business owners. This is a great way to get your feet wet in the real estate investment world and gain insight on the market.

Summary

Knowing your options is key to making the best choice and ultimately you’ll need to figure out which investment will best suit your lifestyle. Would you prefer enjoying a steady stream of passive income that requires minimal time on your behalf, or are you up for a challenge and want to be more involved by opting for the fix and flip scenario?