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How to Buy Turnkey Properties

You can buy turnkey properties from anywhere in the country and earn positive cash flow. Here's how.

Turnkey real estate is a lucrative option for investors seeking passive income with a long-term strategy. With the rise of remote investing, investing in turnkey properties can be done anywhere in the country. Property management companies can take the worry out for you, letting you buy multiple types of properties, without having worry about the maintenance.

What to Look Out for

Before starting your search for investment properties, know what to look out for. Remember that a true turnkey rental property is fully renovated and in rent-ready conditions. The property should be livable without exception, and if being offered by an investment company, it should already have a resident living in it.

When researching a potential property, inspect the following:

  • Location. The property’s market should forecast an upward trajectory making it a viable option for the future.
  • Pricing. Understand the price of the property and the value the pricing is based on. Don’t always trust the first piece of information you find — do your research for your sake and your portfolio’s sake.
  • Holding period. Markets will inevitably change. Ensure you or your investment company are equipped to weather any downturns the market might face.

  • Quality of renovations. Always inspect a property yourself or hire a third-party professional to do so. The opposite could result in suffering a serious hit to your cash flow.
  • Screening process for renters. Understand how the company qualifies its residents and find out what their average vacancy rate is.
  • Experience of the property management team. Having a team that is fully-equipped through every part of the process is imperative. If you’re with a turnkey real estate company, figure out how many people they have on their team managing the property.

The more educated you are on your property and management process, the less risk you will face in the future.

The Steps to Buy Turnkey Property

Find a Market to Invest in

No matter where you choose to invest, always do your research. Seek out markets with high rental population, high rental rates, and high affordability rates. You will also need to find a licensed lender in the state of the market you buy property in. 

Get Financing

Unless you plan to pay with cash, you will need financing. Speak to a lender to make sure you’re qualified. Next, discuss your goals. If you invest with a true turnkey company, they will most likely have preferred lenders that they can refer to you. Keep in mind your long term strategy; if you are planning an expansive portfolio, you will want to find a lender who is licensed in multiple states. This will make your next turnkey investments easier down the road.

Find a Turnkey Provider

The same way you’ll need to research markets, you’ll need to research potential turnkey providers. Check reviews online, ask for referrals, and when you’ve narrowed down your list of options, be prepared to ask all the right questions. The best providers will be able to demonstrate their experience in the industry and be transparent about their properties. Remember that you’re paying for more than just a provider, but also the experience they will give you for many years to come.

Find and Purchase a Property

Come up with a set of criteria you want your properties to have. This will help you stay honed in on properties for your search. For example, choose whether you want a single-family home or duplex, the minimum number of bedrooms and bathrooms, and the return on investment. Once the property is yours, get it inspected by a licensed professional, and rented to a new resident.

Start Buying Turnkey Properties

When you’re ready to start buying turnkey properties, know that the experts at REI Nation are prepared to provide you with an exceptional experience to meet your wealth goals. 

For more than ten years, we’ve managed over 6,000 properties for more than 2,000 investors. Our process is simple. We connect you with a Portfolio Advisor, uncover your investment goals, and then you choose your property and close it. From there, our team handles every aspect of the investment, from acquisition to property management. Each month your Portfolio Advisor will give you an update on the status of your portfolio, so that you are always engaged with your investments.

Our process has proven successful for our investors year-after-year:

  • 5+ years average length of stay
  • 72% of residents renew their first lease
  • Less than 2% eviction rate
  • Less than 3% average vacancy rate
  • Less than 4% annual maintenance cost

Are you ready to unlock your financial freedom?

Connect with an expert today.