As more and more people look for better ways to create income streams and build wealth, they inevitably ask, “what is a turn key home?” The short answer is that a turn key home is an investment property that has been renovated and leased so that it will produce positive returns for you starting at the time of purchase. The company you purchase from should be able to manage the property for you so that the investment is completely passive. The whole goal is to make the investment as the simple and easy as possible.
Major Advantages of Turnkey Investing
For investors who want consistent long-term returns, there are many benefits to buying turnkey investment homes from a high-quality provider. The most important of these is that the investment can be completed passive. You don’t have to spend time managing the house, the contractors or the tenants. The property has been completely rehabbed and is usually in great condition. A provider who wants to be a long-term partner will have made sure there is no deferred maintenance so you won’t have to worry about major expenses for a few years. The home is either rented or ready to be rented so your investment will begin earning an immediate return.
Getting Started with Turnkey Investing
If you are planning on starting with turnkey property investing, there are some steps to take.
1. Understand your Goals
Before starting with an investing, it is important to understand your personal goals. Some people want to invest for income only while others will take a slightly lower ROI (on paper) to invest in better neighborhoods that produce both cash flow and appreciation.
2. Evaluate the Market
Before going any further, you should make sure the turnkey rental market is appropriate. A large number of investors think they should invest in their market when nothing can be further from the truth. Verifying the market will produce the results you need is a critical step.
3. Analyze the Numbers
Trust but Verify the numbers in your Proforma. Know what expenses really matter and ask your turnkey provider for real numbers. What is the actual rent versus the estimated rent? How long are your leases? What is the condition of the high-cost items like the roof, HVAC, and water heaters? What is your actual repair allocation? Asking a few questions up front will help ensure you are going to get the return that is promised.
Turnkey rental investments are a great choice for investors hoping to get more income with less stress. The rental properties are completely renovated, leased, and managed by a third-party. Buying a turnkey rental property enables an investor to earn a truly passive income as well as gain net worth. If this seems like your ideal investment, contact us to learn more about the homes we have available.