Top Five Reasons to Invest in Turnkey Properties

If you’re considering investing in rental properties as a way to source additional income, you’re already on the right path to a successful venture. If you’re worried that you just don’t have the time or energy to devote to being a landlord, however, don’t give up on your dreams of real estate investing just yet! There’s a way to invest in real estate without having to sink every second of your free time into the process—it’s called turnkey investment.

A turnkey investment property is a property that is ready for you to literally turn the key. All required renovations and rehabs have been completed prior to you taking ownership. Often, the property comes already filled with a fully-vetted tenant. Generally, these properties are purchased through a turnkey investment company which handles everything from start to finish for you—including selecting the property, rehabbing and renovating, vetting and selecting the tenant, and ensuring the sale closing properly. These companies even carry on handling the property after the title transfer, offering property management services long after the closing goes through.

It is these companies that allow out of area or busy investors to build a portfolio and collect a passive income with little to no hands-on tasks on their part.

Of course, there are a multitude of other reasons to invest in a turnkey property, especially for new or out of area investors.

1. When it comes to purchasing a property, especially if you’re new to the idea of real estate investment, it can be stressful. There are so many rules, regulations, and requirements that go into finding a viable property. As with any investment, there’s always the chance that you’re making a mistake and that can be extremely nerve-wracking for investors, particularly first-timers. Utilizing an experienced and reputable turnkey investment company will help relieve some of that stress as they will able to ease you through the process a little easier than if you were to go at it alone.

2. Purchasing a turnkey property will narrow down your search when it comes to finding a viable property. Turnkey investment companies do the shopping around for you. They’ll provide you with a list of vetted and practical properties and you merely choose the best option for your goals and needs from a narrowed down list. If you were to begin the search for a property on your own, you could spend months reviewing, visiting, and selecting a property—potentially seeing hundreds of duds before finding the right one.

3. If you’re looking for cash flow, purchasing a turnkey property is typically the fastest way to achieve that. More often than not, when you purchase a turnkey, there is already a tenant in place and revenue has begun to come in. You’re not sitting on a vacant property while you’re finding and selecting tenants.

4. In the grand scheme of real estate investment, most turnkey properties present a higher return on investment than other property choices. Generally, investors see a return of approximately 10-15% from a turnkey property.

5. Turnkey properties can actually be purchased through the use of existing retirement funds, such as an IRA or 401K, making it even easier to secure a constant means of cash-flow.

Of course, these are only five reasons why investing in turnkey properties can be beneficial to investors of all calibers. Regardless of whether you are a first time investor or already hold a sophisticated portfolio, turnkey properties are a quick and easy way to add to your investments and increase your income.