Are you tired of the small returns that your bank account savings or other investments provide? Or are you looking at other ways to continuously earn in a stable and growing market? If this is the case, then you should start looking at turnkey rental property investing. Is turnkey rental property investing an effective and safe way to put your money and time into? Let's answer these questions —
Turnkey rental property investing is good for people who want to expand their funds and gear away from the norm of investing in equity or stocks. The basic idea here is buying a renovated property from a turnkey property provider and putting it up “for rent”. Next step is to earn from the rental income and consider your expenses such as taxes, insurance, repairs and maintenance and the whole property management which can be outsourced to a turnkey property management company.
The top advantage of turnkey rental property investing is that it gives the investor the liberty to determine their profits in many ways. Buying a home might not give you the desired ROI, but it will still give you expected bang for your buck, if you invest in a turnkey rental property.
Advantages of Turnkey Rental Property Investing
There are many advantages of turnkey rental property investing, but here are 5 good reasons why you should take your time and start considering this for your future investments.
You will never run out of clients/tenants
From years before and until now, people will always look for houses to live in. As the population continues to grow, more and more people will opt to look for places to live in. Most people will go for the cities as this is where they would normally get employed with – and having a property near the workplace is an advantage.
Stability
Closely related to the first point, turnkey rental property has never gone on a downhill trend in terms of tenants. Nowadays, that millennials would opt to find a place of their own instead of staying with their families, so renting a property is always their first option.
Ability to manage your investment solely
Unlike other investments wherein the success or fall may depend on a lot of factors when it comes to managing your turnkey rental property, it will mostly be you. You handle all the maintenance that needs to be done with your property. You set the schedule on when you want these routine check-ups to be done to ensure your property is well-maintained.
If you do want to do this on your own, you can hire turnkey property management companies. You pay the taxes and directly speak with your clients. All of the decision-making would fall on you; which means the accomplishment of your investment would depend on your dedication and determination.
It is a passive income source
Just imagine, that you do not have to be physically there at all times to earn money. Unlike a regular job you need to put in hours, turnkey rental property investing would only require 2-3 times a month and around 2-3 hours per visit for maintenance. While you are earning remotely from your rental property, you can do so much more with your time, may it be doing other businesses or jobs.
Property value appreciation
If you have a turnkey rental property situated in an area that is not yet developed and then becomes developed, you can be sure that your property's value will appreciate. When it does, it will then be your choice if you opt to continue with the rentals (for a higher price) or sell it for a much higher price too.
To know more, read this blog post about the advantages of Buying Single Family Rental Properties.
Tips to Invest in Rental Properties
1. Define Your Investment Goals
Before diving into turnkey rental property investing, it's crucial to have clear investment goals. Are you looking for short-term gains or long-term wealth accumulation? Understanding your financial objectives will guide your investment decisions and help you choose properties that align with your goals.
2. Research the Market
Knowledge is power, especially in real estate. Research the market trends, neighborhood statistics, and economic forecasts of the areas you're considering. This will help you make informed decisions and identify properties with the best potential for appreciation and rental income.
3. Find a Reputable Turnkey Provider
A key aspect of turnkey investing is partnering with a reliable provider. Look for companies with a solid track record of success and positive reviews from previous investors. They should offer transparent processes and be willing to provide references or case studies upon request.
4. Conduct Thorough Due Diligence
Even with a turnkey property, due diligence is non-negotiable. This includes verifying the condition of the property, ensuring that all renovations have been completed to a high standard, and confirming that the property is indeed tenant-ready. Additionally, review the property management agreement if one is in place, as this will be critical to your investment's success.
5. Understand the Financials
Turnkey rental property investing requires a clear understanding of the financial aspects, including mortgage rates, insurance costs, property taxes, and expected rental income. Ensure that the numbers add up and that you're likely to see a positive cash flow from your investment.
6. Plan for Management and Maintenance
While turnkey properties are typically less hands-on, they are not non-maintenance. Plan for the ongoing costs of property management, repairs, and maintenance. If you're not using a property management service, be prepared to handle tenant issues and property upkeep yourself.
7. Start Small
If you're new to real estate investing, it might be wise to start with a single turnkey property. This allows you to learn the ropes without being overwhelmed. As you gain experience and confidence, you can consider expanding your portfolio.
By following these tips and conducting careful research, you can make turnkey rental property investing a rewarding component of your investment strategy. Remember, every investment carries risk, so never invest more than you can afford to lose. With the right approach, turnkey rental properties can offer a path to passive income and long-term financial growth.
To learn about how to buy turnkey rental properties, click on the link.
Click on the link for the complete list of turnkey rental properties for sale in the various real estate markets of the US.
For the first four cities on the list, what is common is the fact that it is all within the state of Florida. From research, it has been observed that because property taxes and insurance are low, it plays a big part that there is no state income tax. With this in mind, plus the ideal environment which is warm and sunny, more and more people are choosing to start and rebuild their families and careers here.
Click on the link if you want to know How To Buy Rental Properties With No Money Down.
In summary, if you are planning to invest in a new business, turnkey rental properties should be the option you are looking at. With the extensive list of cities that you can consider starting your turnkey rental property business, plus the reality that rental property is an ongoing human need that comes along with other benefits — where else can you go wrong?
References:
- https://en.wikipedia.org
- https://www.homeunion.com/rental-market-in-tampa-is-booming
- http://www.capeshorepmi.com/blog/2017-2018-cape-coral-rental-market-forecast-for-real-estate-investors
- https://www.wcpo.com/news/insider/cincinnatis-rental-market-soon-will-be-one-of-the-hottest-in-the-nation
- https://www.mashvisor.com/blog/rental-property-10-best-places-to-invest-inreal-estate/
- https://www.mysmartmove.com/SmartMove/blog/6-benefits-owning-rental-property-why-you-should-invest.pag
- https://www.thesimpledollarcom/the-advantages-and-disadvantages-of-owning-a-rental-property/
- https://www.biggerpockets.com/renewsblog/i-love-rental-properties/
