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Posted almost 10 years ago

6 Requirements of Great “Turn-Key” Investment Properties

There are many reasons that investment in turnkey properties is on the rise. Buying a fixer-upper and renovating it is a very time consuming process. It can also be very difficult and inefficient for those that are not experienced in contracting and home building. Many people don't have the time or money to invest in marketing and find great deals. Instead, when getting started in real estate, or just looking to make a sound investment, more people are purchasing turnkey investment properties. When doing so, however, there are a few things you must look for.

    1.The property is in a stable growth market. What is the first rule of real estate? Location. It does not make sense to invest in a market that is on the way down or is stagnating in value.

    2.There are a number of desirable and affordable cash flowing properties in the area you are looking to invest. In my market of Indianapolis, it does not always get the credit it deserves nationally. However, Indianapolis is a thriving metropolitan area with a number of great cash-flowing and affordable neighborhoods in which to invest. When choosing a market to invest in you’ll need to be sure that it has plenty of properties in desirable neighborhoods.

    3.The property is already leased for you. One of the biggest hurdles that come with investment properties is finding a tenant to lease it. An investor can lose valuable money while a property sits vacant. By purchasing a great turnkey investment property that is already leased, you will be a big step ahead in the process. If you’re investing out of state in a place such as my market you’ll want to make sure that you find a reliable property manager to keep vacancies to a minimum.

    4.The property is professionally and responsibly managed for you. After leasing, it is important that a property be maintained well to grow in value and increase your profits as an investor. Like buying a fixer-upper, proper maintenance can be difficult for inexperienced buyers and those that are not builders and developers themselves. A great turnkey investment property will provide a trusted management system that takes maintenance concerns off your mind.

    5.The property is cash flow positive. It’s very simple - you invest in real estate to make money. A great turnkey investment property will accomplish this quickly and efficiently. In Indianapolis, the market is saturated with thousands of homes priced under $50,000 that are generating hundreds of dollars in cash-flow every month for the investors in our city.

    6.The property has been carefully selected so that it meets the tenant screening requirements. Whether you have good renters or bad ones can make or break an investment property. By properly screening applicants ahead of time, you can avoid tenants that could damage your investment.

When investing in real estate, it is important to understand the factors that can save you time, energy and money. A great turnkey investment property will provide you minimal risk and minimal headaches. However, make sure that the turnkey properties you decide to invest in meet the 6 requirements of a great turnkey investment property.

For those experienced turn-key investors out there: Is there anything you can think of that may be a requirement of a great turn-key investment?


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