Are you looking for a way to get a greater return from your investments with less work? Turnkey rental properties may be an option. Even if you invest from a distance, turnkey rental properties can work for you. Turnkey rental properties are an easy investment because they are in good repair, already rented and overseen by a property manager.
What Is a Turnkey Rental Property?
The best definition of a turnkey rental property is a home that needs no renovations (or was recently renovated), and already has a tenant and property management in place. If you are trying to invest in a property like this, be sure that your agent understands that you are searching for investment properties with these criteria.
What Are the Advantages of Turnkey Rental Properties?
Turnkey rentals offer several advantages over other types of investment properties:
1. Easy to Find:
Most turnkey providers have a stock of properties ready for sale. Choose a company with a proven track record for the best results.
2. Easy to Manage:
Turnkey properties have tenants and management in place, and need no repairs. You will not need to find and hire contractors or property managers.
3. Offer Immediate Return on Your Investment:
From the day you purchase a turnkey property, the profits from rent belong to you. You have no concern over time spent for repairs or finding a tenant.
4. Provide a Great Return:
Turnkey rentals can easily provide 6-12 percent returns, right from the start.
5. Diversify Your Portfolio:
By owning turnkey rentals in areas with healthy markets, you are better insulated against market downturns.
6. May Sell for Cash:
If you have had difficulty getting financing for an investment, the low price of some turnkey rentals makes it easy to get started, even with as little as $30,000.
7. Use Turnkeys As a Retirement Tool:
You can use your your self-directed IRA or 401(k) to invest in Turnkey properties.
How Can You Find Turnkey Rental Properties?
Turnkey rental property providers are located all over the United States. Many large markets have turnkey investment firms that specialize in their geographic area. Turnkey properties may vary in cost, purchasing options and return on investment. Before you invest, spend some time researching the area you want to invest in and the property managers you will be working with. In addition, check the numbers to be sure you are getting the cash flow you need.
The most difficult part of investment process is researching the turnkey providers and property managers. Be prepared to spend a few days working the phones, as well as meeting with property management companies in person before you commit to a purchase.
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