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How Turnkey Investment Properties Generate Immediate ROI

December 21, 2013

Properties that are available on the market take some time to research properly. The urge to buy a home to rent is sometimes too strong for new investors and the wrong decision is made. There are different types of returns on investment with a rental property. Learning how turnkey investment properties generate immediate ROI can help with planning your first investment.

 

What are Turnkey Rental Homes?

There are generally two types of homes that can be purchased as rentals. The first type is a home in need of some repairs. These are commonly referred to as flipped houses. Investors purchase these homes for 30 to 40 percent of ARV or after repair value. These homes are fixed up and hopefully turned into a cash flowing property. 

The second type of home is what is known as turnkey. These homes have been secured and renovated. All interior and exterior upgrades have been completed and a tenant is usually attached under a long-term lease agreement. This type of home is one of the easiest to purchase and the fastest type that will start earning a return on an initial investment. 

 

Advantages of Turnkey Rental Properties 

There are many advantages that a turnkey real estate investment has over a standard rental home on the market. Each investor has different expectations for their rental purchase and some properties can be in better locations that others. 

1. No day to day personal management
2. Tenants already signed to an agreement
3. Usually located in good neighborhoods
4. Repairs completed before purchase

 

Next to No Management is Required

Property management companies exist to remove the legwork involved with owning a rental property. While these services come with a small monthly fee, the removal of day to day management can be a lifesaver for a busy person. Turnkey properties usually have a contract in place for property management. 

 

Tenant Lease Agreements in Place

Marketing a property for rent is a time consuming process. Time and money spent market a home, reviewing applicants and attending walk throughs with prospective renters are some of the downsides of the average rental home. A turnkey solution provides paying renters in place before the home is sold.

 

Turnkey Homes are in Good Neighborhoods

Crime is one of the issues that can prevent a property from being successful. There are many lower priced homes on the rental market and are usually found in high crime neighborhoods. Turnkey homes that are provided by investment groups are invested into in excellent neighborhoods. These help attract a consistent supply of renters and one reason why turnkey homes earn immediate ROI.

 

No Initial Repairs Needed

Unlike a house that is flipped before sale, no repairs are needed for the average turnkey home. Upgrades, inspections and other issues have already been completed. This not only saves time, but it also saves extra money after the investment is made. Fixing up damage that happens over the course of owning a property can be controlled with good property management. 

 

Jacksonville, Florida Turnkey Homes for Sale

With a portfolio of more than 300 homes, the JWB Real Estate Capital company continues to expand in Florida. The areas where homes are located in and around Jacksonville have been selected for growth. All turnkey rental homes available can be reviewed when contact is made with a property specialist here. Investing guides and examples of rental homes available can be acquired by completing the form on this page.

By Gregg Cohen

I am a co-founder at JWB Real Estate Capital, and I love to talk about investing in rental properties! You’ll often find me here contributing to our blog and in our Facebook group connecting with the community & sharing insights.

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