Turnkey houses can be some of the most coveted properties to invest in for property investors. They're easier to close and make a faster profit. Here's what you need to know about this type of investment.
What Is a Turnkey Home?
Turnkey homes in property investing are properties that are already updated and can be immediately rented out. They can often be purchased from companies specializing in restoring older properties or from owners who kept the place in good condition. The term isn't only used in investing and may refer to "move-in ready" homes.
Who Should Look for Turnkey Investments?
Turnkey homes are the properties more experienced investors look for, but this isn't always the case. One expert says these homes are most popular with professional investors and families with young children. These homes are best for those who don't have much time to spend investing and renovating a property but want to rent it out. They're low-effort and ready to rent.
We have already covered many turnkey properties' benefits: low initial time investments and quick profits. You may also be able to skip some of the legal responsibilities like appraisals or inspections. You can also save money on the overall price of buying a home to rent out when considering the cost of construction and supplies to prepare a property for renting. Turnkeys and furnished apartments are often very attractive to renters, meaning that units don't stay empty long.
One of the most significant negatives of turnkey homes is the higher initial cost. Of course, the alternative are construction costs, time without income, and legal responsibilities of another property.
You will also have less control over the property's appearance before renting it out. Standard rental properties are quite blank and without character, but turnkey properties could have more expensive design elements, meaning costly repairs in the future. If low effort is your overall goal, you should focus on turnkey homes that were previously rental properties.
If you are not sure where to start but are interested in the passive income opportunities of property investing, speak to an investment expert at Regalway Homes. Book your free consultation below: