Do you dream of owning real estate but don’t have the time to manage rental properties? A turnkey rental might be the perfect investment for you. In this guide, we’ll share what makes these properties so appealing to busy investors, the pros and cons of buying turnkey, and how to find turnkey rental properties for sale!
Summary:
A turnkey rental is a recently built or renovated property that you can rent out to tenants for a profit. This type of property often comes with property management and renters already in place, meaning you’ll put less time and effort into your rental and earn passive or semi-passive income right away!
What sets a turnkey property apart from other real estate investments? Consider the following benefits:
Many turnkey rentals, like Rent to Retirement’s new builds and renovated properties, come with tenants already screened and placed. This allows you to start earning rental income as soon as you close!
Managing your own rental properties can be extremely time-consuming, as can finding and vetting a property manager. Fortunately, most turnkey rentals come with a property manager already in place, so you don’t have to worry about finding tenants, collecting rent, or performing repairs.
Since someone else is managing your rental on your behalf, you’re not limited to your own market and don’t need to live near the property. You can invest from another city, state, or country without any hiccups!
Many investors underestimate just how much maintenance, repairs, and capital expenditures can eat into their real estate cash flow. Because turnkey rentals are either newly built or renovated, they have much lower maintenance and repair costs, allowing you to hang onto more of your rental income.
Thankfully, the process of finding a turnkey property isn’t all that different from finding a regular rental! Follow these four steps:
What can you afford? How much mortgage can you get approved for? There’s often a gap between these two numbers, so make sure you’re being realistic and not stretching yourself too thin.
Need help nailing your budget? Rent to Retirement works with some of the top lenders in the nation for an easy preapproval process!
Next, where do you want to buy? One of the biggest advantages of buying turnkey is that you can invest from anywhere in the world. Rent to Retirement has turnkey rentals available in some of the best states to buy rental property!
Your “buy box” is a set of requirements for the property you want to buy. Turnkey rentals range from single-family homes to small multifamily properties and build-to-rent homes to renovated rentals. Pin down the type of rental property that best fits your investing goals, strategy, and budget, and don’t stray from your criteria!
Now that you’ve narrowed down your budget, location, and requirements, it’s time to start your search! Turnkey properties aren’t as common as regular rentals, but here are a few ways to find them:
Rent to Retirement is the best place to find turnkey rentals. We have dozens of renovated properties and new construction homes for sale across the US, and we even offer 5%-down financing on new builds!
Simply tell your real estate agent that you’re looking to buy a turnkey rental. They’ll not only source turnkey property listings for you but also leverage their network to find even more turnkey properties.
By attending local meetups, you’ll connect with other investors and businesses that might be able to help you find your next turnkey rental. You can also ask around in online investing forums, like BiggerPockets.
Need a hand finding the right property? These top turnkey companies can help you out!
Rent to Retirement is the nation’s leading turnkey provider and the highest-rated turnkey company on BiggerPockets, holding a perfect five-star rating across 270+ reviews. We also teach investors about turnkey rentals and how to achieve financial freedom at Rent to Retirement Academy!
North American Financial Group works closely with turnkey investors to help them find affordable financing. They offer FHA loans, conventional loans, debt service coverage ratio (DSCR) loans, jumbo loans, and more!
Nevada Corporate Headquarters helps turnkey investors protect their assets with LLC and corporation formation services. Their packages include everything from registration and custom website design to tax planning and bookkeeping.
Although turnkey rentals are some of the best hands-off real estate investments, there are a few drawbacks to keep in mind:
Unlike older or more run-down homes, turnkey rentals have been recently built or renovated. This means that it can be difficult (and often unnecessary) to make changes to the property’s layout or appearance—especially if it’s already being rented out!
One of the biggest perks of turnkey investing is that someone else manages the property for you. While this saves you plenty of time and energy, it also requires you to leave day-to-day operations, repairs, and evictions in the hands of your property manager. This is especially true if you’re investing out-of-state and can’t get to the property easily.
The convenience of turnkey investing may come at a slight premium. You’ll also need to account for monthly property management fees, although this service may ultimately save you time and money!
Did you know Rent to Retirement offers exclusive discounts and 5% down loans on new build turnkey rentals?
Now that you know how to find turnkey rental properties, it’s time to begin the search for your next property!
Rent to Retirement makes it easy to find the perfect rental. As the nation’s top turnkey provider, we’ve got new builds and recently renovated properties for sale in high-cash-flow, high-appreciation markets throughout the US. All of our properties come with management and tenants in place!
There are a few ways to find turnkey rental properties. Ask your real estate agent, connect with other investors at local meetups, or browse Rent to Retirement’s catalog of turnkey properties for sale across some of the best rental markets in the US!
The two-percent rule states that your rental property should be able to generate at least two percent of your property’s purchase price in monthly rental income. Keep in mind that this rule is outdated and very difficult for investors to achieve in today’s market.
Yes! A turnkey property can be a great investment, especially if you work a taxing nine-to-five job or have no interest in being a landlord. A property manager will oversee your rental’s day-to-day operations, leaving you with minimal work, if any.