Real estate investors often choose the traditional buy/fix/flip or buy/fix/rent model. However, the trends are changing. Many investors are now opting for other ways which have proved to be less time consuming and effort intensive than the conservative ways. In this time and age, who has the time, money and energy to put into such investments? Right?
Turnkey real estate investing can offer you, the investors instant cash returns without the hassle and the headaches of the classic mode of investing. As the name suggests, turnkey is an investment (usually of a single family home) where you just turn the key of the front door and are open for business.
Turnkey real estate is rapidly becoming a preferred mode of investing for many investors. Apart from being fast, easy and a guaranteed mode of cash flow – there are many other reasons. Here are some of our favorites….
No need to fix it up:
The biggest advantage of buying a turnkey rental property is that someone has already done the dirty work of repairing and updating the property. There is no need for you to find a property (often distressed but in the best neighborhoods) that is attractively priced but requires fixing up. No need to get into the headaches of dealing with contractors for major repairs because the property has already been repaired by the previous investors. Often, the sellers have also hired a property management firm which frees you from handling calls about the maintenance of the property from tenants. The property management firm will handle all that by charging about 10% of the monthly rent. When you purchase turnkey rental properties in Palm Beach County Florida that is already fixed and repaired, you don’t have to deal with the maintenance and the repairs.
Faster cash flow:
Who doesn’t like instant cash? Of course, we all do! When someone has already repaired the property, the costs are reimbursed when you purchase the property. The previous house owner/investor has already paid the costs that went in the utilities, maintenance, and even the taxes up to the point of purchase. When you purchase a property that already house a tenant, you automatically become the receiver of the rent from them.
You will, of course, have to pay the taxes and insurance that is obligatory on homeowners but they tend to be normal expenditures for most home investors. You have to pay the costs anyway. However, if you purchase a turnkey property, you instantly receive the rent from the tenants without doing as much as lifting a finger.
Higher occupancy rates and overall income:
Another major advantage of investing in a turnkey property is that the previous owner/investor has performed all the necessary checks before housing a tenant including their background checks, creditworthiness, and payment history.
It can take months, sometimes even a year to fix a home and rent it out. Even after you buy a property which is ready for its new homeowners – details can occur due to the screening process of new tenants.
However, with turnkey properties you are entitled to rent the minute you pay for the property and sign the paperwork. As long as you are getting a rent which coordinates with the current market conditions – you are ready to go. Buy buying a property that already houses a tenant; you don’t have to go through the hassle of finding a suitable renter in the near future. This minimizes the odds of a vacancy in your home, thus enhancing the profits.
Simplified Financial Analysis of the Deal:
Another ‘not so known’ benefit of turnkey rental property deals is the simplified financial analysis for a buyer. What are the current mortgage payments? How much are the additional costs for property taxes, insurance, and property management fees? When you compare these costs to the current rent rate, you often don’t like the profit margin. This often results in the investors not buying the property.
This is why it is a good idea to buy turnkey rental properties in Palm Beach County Florida?
By buying a property through the traditional route, often investors make mistakes that can prove to be expensive. With a turnkey property, you don’t have to worry about the mortgage rate, bills for the repair and upgrades and collecting the current rental rate, etc. with a turnkey property, you only have to review the normal expenses like the fees for property management, taxes, and insurance. Often, the profit margin for turnkey investors is greater than the previous investor.
The simpler financial analysis with fewer aspects to consider means that there is a less probability of you making a bad financial decision. This also increases your odds of making a good profit in real estate.
These were just some of the reasons turnkey rental properties in Palm Beach County Florida are a good and profitable option for investors like you and me. However, one must remember that not all turnkey rental properties can hit these advantages. This is why it is important for you to do your research thoroughly before purchasing a property for investment. You can also trust us in helping you find the best turnkey rental property in your area that can prove to be financially profitable for you for many years to come.
For more information and queries, contact us. Just give us a call at (561) 370-8335 or fill out the short form by clicking here and find out for yourself the benefits of turnkey rental properties in Palm Beach County Florida. We have a range of turnkey rental properties that you can purchase and reap the benefits instantly.