There is a growing trend among millennials who grew up with a struggling real estate market. Now that the housing market is rebounding, this generation is slowly beginning to get their feet wet in real estate in an unconventional way. Their launch into the real estate market is happening through turnkey real estate investments.
Millennials are purchasing turnkey real estate investment properties, often with no plans to live in the home. Instead, they are electing to rent the homes out as a way to generate a source of income as they are working to build a post-college life.
How It Works
For buyers, the process begins by identifying homes that are move-in ready, as opposed to properties that must be renovated. These properties are ready to be leased immediately to tenants, and often come with recommendations about a management company to handle everything from leasing to managing upkeep and repairs.
As turnkey properties have become popular, many investors turn to real estate wholesalers who specialize in these types of properties, and have a track record of success.
Turnkey investment properties often come with a property management company already in place, but sometimes the seller refers property management companies to the buyer who can choose the one he prefers.
Most importantly, a turnkey property is ready to generate cash flow for the owner from day one.
How to Make a Purchase
Real estate investors who specialize in turnkey real estate investments are a great source to purchase these properties.
A turnkey investment property has been rehabbed and is “rent ready.” In some cases, the property is turnkey to the point of being tenant occupied and having property management already in place.
When buying turnkey properties, research the real estate investment company from which you will be purchasing the property, the property management company, and the property location in respect to the city and neighborhood.
Every investment has inherent risk, and real estate investing is no different.
As with any real estate investment, there is the potential for something to go wrong, or for there to be significant repairs in the future. Hiring an experienced property management company can help mitigate many of these risks, and make your investment more profitable.
Other risks can include national and regional market risks, tenant risks, cash flow risks, and financing risks.
Graystone Developments assists real estate investors rehab newly purchased property and get it on the rental market as quickly as possible. And, we assist investors and property management companies turn vacated rental property quickly and efficiently.
To learn more about our services, including our VIP Client Services, Property Maintenance, and Turn Rental Property service, please see our Services page.