Investing in turnkey properties is one of the hottest real estate trends today. They offer you a safe and sustainable way to earn passive income and let you make money while you sleep. They’re fully renovated and ready for renting right after you close the sale. In fact, it’s not uncommon to have a tenant before you make the purchase.
Compared with other property types, running turnkey single-family home rentals requires less time and effort from you. In many cases, turnkey real estate companies also provide management services, shouldering repair and maintenance chores on your behalf.
For many reasons, it’s not hard to imagine why turnkey real estate investing is booming in America. However, Americas Housing Alliance, LLC noted that you shouldn’t think it’s not without challenges. Despite the convenience the business model offers, you should nonetheless do your due diligence to ensure you’re investing your dollars in the right place.
If you’re strongly considering buying a turnkey property, remember the following:
Don’t Skimp on Research
Understand your real estate market, especially when buying a property in another part of the country. You may have to start from scratch to have a good idea of the single-family house’s value now and its projected future growth. Moreover, make sure you work with the right real estate investment company. As an investor who may be living thousands of miles away from your investment, ensure you’re partnering with a firm with good credentials.
See for Yourself
Simply because you’re buying a rehabbed property doesn’t mean it’s completely fail-proof. Any savvy investor would hop on a plane (if needed) to visit the actual house before sealing the deal. Considering at least hundreds of thousands of money is involved in the transaction, flying to see the property in person would help you make a better decision. In addition, it allows you to see the neighborhood with your own eyes. Drive around the city, see the developments, and gauge the area’s marketability.
Clarify Ownership Arrangement
Most investment companies would put your sole name on the title. However, some firms would instead create a corporation or a limited liability company and ask to be a general partner. Among many reasons, they want this setup to make repairs straightforward and be done without needing your approval first. Whatever the arrangement offered to you, study it and make sure it works for your situation.
Turnkey property investing is the future of real estate. Although it’s not for everybody, there’s no questioning its income potential if you play your cards right.