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TURNKEY ISN'T THE CASH COW IT USED TO BE- HERE IS HOW TO PLAY IT NOW

Hey Everyone,



One of the most common questions I get from athletes and high-income earners is:


“Should I be buying turnkey properties?”


Here’s the honest answer: turnkey rentals can be a smart part of your portfolio—but only if you understand what they are and what they’re not, especially in today’s market.



Let’s start with the reality:


Turnkey real estate is no longer a strong cash flow play in most markets.


Prices are up. Interest rates are higher. Rents haven’t scaled fast enough to keep up.


If you’re expecting to drop 20% down and clear hundreds in monthly cash flow, you’re going to be disappointed.


So what’s the play?


If you’re buying turnkey right now, you need to think long-term:


Strong appreciation upside

Solid tax benefits (especially with cost seg if you qualify)

Minimal time and effort to manage

But cash-on-cash returns? Don’t expect much in the short term unless you’re putting significantly more money down or buying at a big discount.


Still interested? Cool. Here’s what I personally look for when I do consider a turnkey deal:


1. Vet the Operator, Not Just the Property


You’re investing in the provider just as much as the real estate. Look for 3+ years in business, clear communication, and real references from other investors.



2. Stick to Growth Markets with Real Fundamentals


I’m not chasing cheap properties. I’m looking for stable, appreciating neighborhoods with strong rental demand and job growth. Bonus points if I can verify third-party inspection reports and market rent comps independently.



3. Don’t Sleep on Property Management


A great manager keeps your investment passive. A bad one kills your return. I want managers with a reputation for tenant screening, responsive communication, and fair fees (8–10%).



Bottom line: turnkey investing is no longer about immediate mailbox money. But if you’re looking to park capital in appreciating assets, lock in tax advantages, and keep your time freed up—it can still be a great long-term move.



Want my personal turnkey checklist? I’ll send it your way—just reply or shoot me a DM.



Stay sharp,


DK 💰

 
 
 

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THE CAPITAL EDGE NEWSLETTER
BY DEVON KENNARD


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