TurnKey Vs Fixer-Upper: Why Fixer-Uppers SUCK Your First Year

So you're buying your first house, and you're wondering if you should listen to conventional wisdom and add equity or get in the game quickly and buy a turnkey property. When I bought my first rental house, I decided to follow conventional wisdom and buy a fixer upper.
This was a lot of hard work and a lot of learning on the job. But it ended up being my best house so far. Let me share with you the pros and cons of your first house being a fixer upper or a turn key.
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[@jbsdiygarage]

Great video man! Appreciate the effort youve put into laying this all out 🤘 Keep it up!

[@jakeofreshly]

Hahahah man. I love the comments. Sorry for taking so long.
2 million under management so far! But I just turned thirty. I wanted 30 houses before I was 30… didn’t make it, but still chugging along.

[@VocabuLarry85]

You and I are like minded individuals. How long did it take you to save your money to buy the first house.

[@jakeofreshly]

So it's going to be kind of hard for me to answer this question. Because I definitely didn't do it right. When I graduated college, I had an accounting degree. And I bounced around in a couple of accounting firms before I realized I hated the job, quit, and drove Uber. After a few months of driving Uber, I got a sales job and finished my MBA. And that allowed me to get out of the accounting field and focus on business in general.
During this whole entire time, I was basically broke. I was not making any money as accounting interns and I wasn't making money doing Uber. And during my sales job, I wasn't making enough money to really save. Probably could put two or $300 into hard savings every two weeks. Basically sustenance living.
When I finally got my MBA, allowed me to not be cornered into the accounting field. And I started looking for managerial jobs. And I looked up about 3 years ago and started working for a public company as an engineer manager.
So in the last three years, I made and put in the bank more money than my entire life for the first 25 years or so.
But I was a screw up. And I got a degree that I hated in a job field that I hated. So I pretty much wasted all my college experience and had to go back to get a different job. I actually don't even have a job in my field right now. But I basically wasted all my early life doing things that I did not enjoy doing and not making any money

[@jakeofreshly]

Now that's a long story, but I'm getting around to your answer. My first house was $125,000 and it needed major renovation. I put down $25,000, and then I also had to renovate it for $25,000. So my first house has about $50,000 in it. But since then, the house is probably worth $275 to $300,000 right now. With prices going crazy, and me renovating and giving it an extra bathroom, that $50,000 is basically nothing because the house is doubled and value in 2 years.
Now here's where the secret is. I had partners. I was going to just live in the house and put 5% down and fix it for 6 months. WHICH IS A GREAT IDEA! IT'S CALLED HOUSE HACKING!. However, I found two people that wanted to go in on the property with me and we each put down about $9,000. And then I loaned the other $25,000.

[@jakeofreshly]

Now I basically giving you complicated answers. But It depends if you want to do it cheap or you want to do it fast. If you want to do it cheap, I would just apply with a conventional loan and put 5% down. If I wanted to do fast, I would ask a couple buddies who have money and see if you can pull your money together.
But I think it was like $9,500 is what I put down on the original house. And two of my partners did the same thing...
I hope this helps.