Turnkey real estate is a style of real estate referring to properties that are ready to be rented. No improvements or repairs are needed everything is ready to go. All you need to do is invest the capital to own the property and let a different company rent it out, perform tenant maintenance, and everything else that is required. You simply supply the capital and reap the profits. Hence the name “turn the key” or “turnkey” property.
Research different companies and markets
Most turnkey property companies are located in the Midwest since the property is cheap and demand is constantly rising at a rapid rate. It’s important to get recommendations and make sure you get referrals from at least several years ago. Then, ask how the investment is going and see what the returns have been. In most cases, someone who is enthusiastic is a great sign the company is working well.
Set up your financing beforehand
Before jumping into the investment process make sure you are pre-approved and ready to put down 20-30% in most markets. In some markets such as lower-priced markets like Detroit, you may be asked to pay all cash for turnkey properties.
Either way, make sure to do your research and come with cash in hand or financing that is ready to go when investing in turnkey properties.