6 Advantages to Buying Turnkey Rental Properties
Many investors are looking for new investment opportunities in the housing market.
A turnkey property is a fully renovated home or apartment building that can be purchased immediately—then rented out right away.
Should you consider turnkey property investing?
If you enjoy:
- scouting out properties
- inspecting properties
- handling the renovations
- coordinating with contractors
- scheduling meetings with your property management team
- spending time on all the details to get things done
Buying turnkey rental properties may not be right for you.
Great! You can certainly do it all yourself if that’s what you enjoy.
However, if that doesn’t sound like much fun, the good news is there are many advantages to buying turnkey rental properties instead.
Let’s look at six big advantages.
Here are the 6 Advantages to Buying Turnkey Rental Properties:
#1 You spend less time and energy on your property investment when you work with a turnkey company
At True Turnkey, our clientele are movers and shakers—doctors, lawyers, business owners, professional athletes, entertainers—and that means their time is precious. They are obviously busy, so they don’t have time to find rental properties, renovate the house and manage tenants.
Of course not.
To do rental property investing correctly takes time.
If time is not a factor for you, that’s fantastic. Some people enjoy spending their weekends looking for properties.
But if you don’t have the time to put into finding and maintaining rental properties, then a turnkey rental could be the way to go.
#2 You Get Immediate Cash Flow
When you invest in a rental property that needs renovations, normally this will take at least six weeks or more to finish.
With a turnkey property, the renovation is already complete, and a tenant is living on the property, so you get immediate cash flow.
A good analogy to illustrate the difference is changing your car’s oil. You can do it yourself—go buy the oil and filter, take the time to do the labor of changing the oil, get your hands dirty—or you can go to Jiffy Lube and relax with a cup of coffee for twenty minutes while someone else does it all for you.
Same principle. You save yourself a lot of time and money.
Immediate cash flow is why some folks choose to go with a turnkey rental property. You don’t have to do any of the legwork, and you start collecting rent checks right away.
If you want financial freedom, consider a turnkey rental property—just make sure you find some experienced people who know how to do this.
#3 A Less Expensive Entry Point
Many do-it-yourself property investors end up overspending on their first few rehabs.
They buy a property that is too expensive, and they overspend on materials, contractors, and other pieces in the process.
A turnkey provider can help you keep your costs down.
It takes an efficient, experienced turnkey provider like us to know what materials to buy—paint, carpet, furnace, plumbing, water heaters, etc.—we know what we’re doing. We know where and how to find lower prices on those materials.
Do you know how to keep your costs down?
If you do, congratulations! If not, you can save yourself a lot of money with a turnkey provider.
#4 No Previous Experience Needed
Since turnkey rentals are so low maintenance for investors (no property management included), this investment is a great choice for people with no previous real estate investment experience or landlord experience.
If turnkey property investing is new to you, we can guide your entry into this exciting new world.
#5 Diversify Your Investment Portfolio
As an investor, you may already have some stocks, mutual funds, and even some rental properties in your portfolio. (You may also be managing those rental properties.)
One of the unique opportunities that turnkey rentals offer is the ability to own rental properties not close to you—even a thousand miles away (or more.)
Because it’s turnkey, there’s no work on your end. All you do is collect rent checks. Living close to the property is not required.
Just make sure you have a great property management team taking care of things. That way, you can own property in a completely different rental market anywhere in the country with peace of mind.
#6 Early Retirement
The first step to an early retirement is to calculate your numbers so you know where you’re going. So be sure to figure out your financial freedom—know where you’re going first.
Next, find a turnkey provider that can get you closer to retirement at a faster rate—someone like True Turnkey who can find properties for you and get those rent checks coming in faster. That speeds up the whole process, building up the passive income that will ultimately enable you to retire at an earlier age.
The Advantages to Buying Turnkey Rental Properties are Clear
Let’s review why this investment deserves serious consideration: