Around 36% of American households live in rental properties. If you are a real estate investor, this is probably good news for you.
As an investor, you buy real estate to rent out. You can buy vacant and rundown properties to fix up and rent out, but you can also buy turnkey real estate.
Do you understand what a turnkey property is? If not, continue reading this guide to learn everything you need to know about turnkey homes.
The Basic Traits of Turnkey Real Estate
The first thing to ask is, “what is turnkey real estate?” If you are new to real estate investing, you might wonder what this term means.
To understand what that means, you should learn the basic traits of turnkey properties. The main trait is that a turnkey property is completely finished. It needs no work.
When you buy these types of properties, you won’t have to invest money and time into the properties preparing them for rent. Instead, you buy them and rent them out immediately.
Turnkey properties are exactly the opposite of rundown properties. A rundown property needs work and money invested in it before you can rent it, while a turnkey property won’t need any form of major work.
It might need a few minor things, but it won’t need anything major.
Reasons to Invest in Turnkey Properties
After learning the basic traits of turnkey real estate, you might wonder why investors buy these types of properties.
The main reason is that they won’t need any work. If you can purchase a rental house today and rent it out tomorrow, you can begin making money right away.
Therefore, you have immediate income coming in from the investment you make into the home.
Secondly, you won’t have to worry about unexpected expenses. While you might have to invest a small amount of money into a turnkey property, you won’t have major unexpected expenses to pay for with these homes.
What to Expect When Buying Turnkey Homes?
If you’re interested in buying properties like these, you might want to read through a turnkey real estate guide to learn more about what to look for when choosing homes to buy.
You can also read through turnkey real estate tips to learn what to expect. One of the main things to expect when using turnkey real estate investing is paying more for the properties.
The prices of properties are highly dependent on the condition they are in when you purchase them. If you buy homes that don’t need any work, they are likely worth more than rundown properties.
Therefore, you should expect to pay higher amounts for these types of properties.
Know What to Look for When Buying Rental Properties
After learning more about turnkey real estate, you might decide to start looking for some turnkey properties to buy. You can reap many benefits by investing in these types of homes.
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