As per a research report commissioned by Trulia, across America, buying of property is considered to be at least 40 percent less expensive than renting the same. This is specifically true for investments made in real estate for long term holding purposes. This imbalance between renting and buying properties is providing some golden opportunities for real estate investors. In recent times, there has been a rising demand for the purchase of “turnkey” properties that need lesser efforts and time investments for the purposes of renting out.
One of the key factors that makes such properties unique in themselves is that they are already rehabbed. In most cases, well-established and reputed real estate companies are known to invest in such high return real estate through turn key rental property. The rehab process takes place before a specific property is marked as ‘available’ and put up in the market. In general, such companies are also known to provide efficient property management services to make life easy for investors. In other words, in case you have rented out one such property and the air conditioning unit breaks down, then your tenant would be calling up the property management service providers rather than you. Now, isn’t that something worth looking forward to in your investments?
Turnkey properties are fast becoming a popular real estate investments opportunity for people living in cities and town that are far away from where they are situated, for instance, in New York City and the more expensive markets. As investments in affordable properties is an unthought of proposition in expensive markets, smart investors prefer to create rich cash flow resources by investing in homes elsewhere (less costlier places).
At the very onset, it is essential to have good knowledge about the property you have decided to invest in. Typically, turnkey homes need lesser time investments than most other kinds of real estate. However, this does not mean that investors can underestimate the quantum of research that they need to perform to get hold of the best properties.
One of the biggest questions that comes to the fore in the minds of investors pertains to whether the property has good value or not. It is recommended that investors should not get lured by the term ‘turnkey’ and fall for properties that may not be fool-proof. As per experts in the field of real estate properties, it is critical that you visit the apartment, building or house that you wish to invest in. Strive to go there in person and check out the smallest of details intricately. The act is best performed before the transaction formalities are decided upon and sealed.
Your home is a primary life-time investment and you should go about the process of purchasing it with utmost care and caution. Even if you need to travel to the other side of the country, do so; you need to be absolutely sure of what you are putting your hard-earned money in. Seeing the property in question with your own eyes would give you first hand idea about the neighborhood, living amenities and other factors of purchase that would cast a significant impact on the long-term marketability of your property.
For the sake of additional security, experienced investors are of the view that a professional home inspection needs to be conducted as well. Though you may be impressed with the efforts of the rehab company in context to fully renovated bathrooms and a sparkling kitchen, you may want to take a closer look at the less-conspicuous attributes of your new home. For example, along with the more easily visible living spaces, it is essential that the furnace, roof, attic and other storage areas are in top notch condition as well.
It is equally important to know all that is required about your property manager. As the norm goes, turnkey investors are prone to trusting their property management company to a large extent. Given this, you would definitely want to link up with one such company that’s equipped to handle any kind of problems, and get in new tenants in lieu of the ones who are planning to leave. These and other attributes of a management firm makes it imperative for you to invest the appropriate time and money in doing your homework well. You would not want to go ahead with your real estate investment before knowing how well-experienced the firm is or the turnaround time it takes to get in new tenants; right?
Turnkey properties serve to be the perfect investment alternative for you if you do not have the time to renovate or maintain the premises yourself. Go ahead and invest, you will love to see how your property works for you.