Are you looking for the right kind of investment property? Do you want to know more about turnkey real estate?
Turnkey real estate investing is about more than having a property you don’t need to maintain. Out-of-state investors especially believe that it is the best way to take advantage of today’s booming real estate market in smaller cities.
Here’s what you need to know.
What Is Turnkey Real Estate?
A turnkey real estate property is fully renovated. There are only minimal repairs required. All a renter would need to do is “turn the key” and move in.
Many real estate investors are drawn to turnkey properties because costs are quite low. This is especially true for out-of-town investors who won’t be available to make repairs on a regular basis. All they will need to do is invest in the property and start seeing an immediate cash flow.
What Do I Need To Know About Turnkey Real Estate Benefits?
A dramatic change in the working landscape after the COVID pandemic quarantine makes now an excellent time to invest in turnkey real estate.
With so many folks now able to work remotely, many companies are choosing to save money on rent by moving to smaller, less expensive inland cities. In addition, workers themselves are choosing to spread out across the country, looking for more affordable living opportunities because they’re no longer tied down by their job’s location.
If you’re an investor who lives in LA or Atlanta and wants to invest in another neighborhood, turnkey real estate can help you do that without needing to move. You won’t have to worry about being a remote landlord with turnkey property. It’s unlikely that any major repairs will be required.
Many investors like that they don’t have to wait to start seeing a return on their investments. In most cases, you’ll have a wide selection of quality renters to choose from, and a renter lined up before anyone’s lease is through.
Some investors are quite interested in finding quality real estate investments but lack the skills or staff to deal with regular repairs. Problems with electrical equipment or plumbing are unlikely to come up with turnkey property.
Any issues with a turnkey property should be minor. You can also look into a property management company that can handle rent collection and any day-to-day complaints on the ground while you continue to earn money from afar.
Turnkey properties can also help you to expand your real estate portfolio. You will be able to branch out into other areas of the country and invest in new types of buildings.
What Is a Good Market?
In today’s climate, finding a turnkey property in a smaller city is a win. Many folks move from coastal cities because they love the idea of getting a pristine apartment for a great price. However, they may eventually be turned off by the loss of the lifestyle they’re used to.
Investing near an inland city, however, is a win-win move. Individuals and families can enjoy the restaurants, nightlife, and shopping they’re used to without the noise and pollution. Many of these cities also have a thriving art and culture scene.
Memphis, for example, offers a relatively low cost of living. This includes affordable utilities, housing, and goods. Access to financing and low overhead also means it’s a great place to start a business.
Population growth means that you’ll find no shortage of renters, especially young professionals. You’ll also enjoy plenty of affordable home-buying options for your investment.
Memphis offers delicious locally sourced food, world-class film festivals, and a booming music scene. If you want to invest in the future that’s getting more exciting each day, you’ll need to check it out.
How Do I Find a Good Turnkey Property?
You can certainly own a turnkey property if you live out-of-town, but it’s important to visit in in-person first. You can tell a lot about the property from photos. However, you won’t be able to really get a feel for the neighborhood until you make a trip to the building yourself.
It’s important to know what you can afford to purchase, as well as the type of property you’re interested in. For example, if you are purchasing a single-family home, is there a market for families moving to the area?
Job growth and population growth are also key to your decision. If an area is booming, you can look forward to getting even more money from rent in the future. Make sure you get all of the statistics before you invest.
You’ll also want to take a look at the rental population in the area. Are there a number of young professionals, families, or retirees moving to the area and looking for a lease?
In some cases, the area may be a hot place for job growth, and folks may be renting to see if they’re happy before they buy. You’ll also want to find out what websites these individuals are looking at for their rental options.
Average home prices, monthly rents, and renter default rates should also weigh in on your decision. If you’re willing to do a little homework beforehand, you can be even more confident when you make the actual investment.
Investing in The Future
If you’re looking to invest in an out-of-town market, you can’t go wrong with turnkey real estate. All you’ll need to do is purchase the property and start earning an income you can count on.
Don’t stop getting smart about turnkey investments now. For more great advice, contact us today.