Turnkey vs. DIY: Choosing the Right Investment Approach for Your Real Estate Goals

By Carissa Kristoff
Realtor, Berkshire Hathaway HomeServices Select Properties

With nearly two decades of experience in residential real estate, I’ve seen it all: buyers enchanted by the charm of fixer-uppers, and investors thrilled by the immediate income potential of turnkey properties. Both options have their unique appeal and challenges, and finding the right fit depends on your goals, lifestyle, and appetite for risk and effort. Let’s dive into the pros and cons of turnkey properties and hands-on renovations to help you make the best decision for your real estate journey.

The Case for Turnkey Properties

Turnkey properties are homes that are move-in ready, often recently renovated or in excellent condition, requiring little to no immediate work. These properties are especially popular among first-time homebuyers, busy professionals, and investors seeking rental income.

Benefits of Turnkey Properties

  • Convenience and Time-Saving: With turnkey properties, you can move in or start generating rental income almost immediately. There’s no waiting for contractors, permits, or materials, making it a stress-free option for those with tight schedules.
  • Predictable Costs: Since major repairs or renovations have already been addressed, the upfront costs are more predictable. This minimizes the risk of surprise expenses often associated with fixer-uppers.
  • Immediate Value: A turnkey property’s updated condition can provide peace of mind and immediate enjoyment, whether you’re buying for personal use or as an investment.

Challenges of Turnkey Properties

  • Higher Purchase Price: Turnkey homes typically come with a premium price tag, reflecting the convenience and recent upgrades.
  • Limited Personalization: While the finishes may be modern and appealing, you might find it challenging to add your unique style without undoing work that’s already been done.
  • Market Competition: The ease and appeal of turnkey properties often attract multiple buyers, leading to bidding wars that drive up prices.

The Case for Hands-On Renovations

Buying a home in need of repairs or updates can be a thrilling adventure—or a daunting endeavor. It’s the right choice for those who want to customize a home to their liking and potentially increase its value.

Benefits of Hands-On Renovations

  • Lower Initial Cost: Fixer-uppers often come with a lower purchase price, providing an opportunity to enter desirable neighborhoods or markets at a more affordable cost.
  • Customization Potential: Renovating allows you to tailor the home to your exact preferences, from paint colors to floor plans. This is ideal for buyers with a clear vision and creative flair.
  • Equity Building: By improving the property, you’re likely to increase its value, potentially yielding a significant return on investment.

Challenges of Hands-On Renovations

  • Time and Effort: Renovations can be time-consuming and require significant effort to manage contractors, budgets, and timelines. For some, this process can become overwhelming.
  • Unpredictable Costs: Renovations often uncover unexpected issues, such as structural problems or outdated systems, which can lead to budget overruns.
  • Living Conditions: If you’re renovating while living in the home, you may face inconveniences like dust, noise, and limited access to essential areas.

Factors to Consider When Choosing

  • Your Budget: Assess your finances realistically. Can you afford the higher upfront cost of a turnkey property, or are you better equipped to handle the phased expenses of a renovation?
  • Time Commitment: If your schedule is already packed, managing a renovation might not be feasible. Turnkey properties offer a “plug-and-play” solution for busy lifestyles.
  • Long-Term Goals: Are you planning to live in the property for years or flip it quickly? Turnkey homes may be better for immediate resale, while fixer-uppers often excel in long-term value growth.
  • Personal Skill Set: Do you have the skills or connections to handle a renovation project? My experience running a residential cleaning and management company taught me the value of DIY knowledge, but not everyone is cut out for wielding a paintbrush or managing a construction crew.

Final Thoughts

Both turnkey properties and hands-on renovations can lead to rewarding outcomes—it all comes down to what aligns with your lifestyle, financial situation, and vision for the property. As a trusted real estate advisor with Berkshire Hathaway HomeServices Select Properties, I’m here to help you navigate these options with clarity and confidence. Let’s find the perfect property that suits your needs and goals.

About Carissa Kristoff

With 19 years in residential real estate, Carissa Kristoff has built a reputation for providing clarity and confidence throughout every stage of buying, selling, or leasing a home. As part of the Berkshire Hathaway HomeServices Select Properties team, she collaborates with seasoned brokers, agents, and administrators to secure optimal outcomes for her clients. Carissa’s work ethic is matched by her commitment to enjoying life: she’s an avid sailor, snow skier, and certified yoga instructor. She also brings a hands-on approach to homeownership, thanks to her background running a residential cleaning and management company, where she honed her DIY skills in gardening, painting, and decorating. Whether guiding a first-time homebuyer or a seasoned investor, Carissa leverages her well-rounded experience to simplify the process and deliver top results.