What are Turnkey Investment Properties?
Turnkey Investment Properties are residential or commercial real estate properties that are fully renovated, in good condition, and ready for immediate occupancy by a tenant. The term "turnkey" comes from the idea that the new owner or tenant can simply "turn the key" and move in without having to make any major repairs or improvements.
Turnkey investment properties are typically purchased by investors who want to earn cash flow through real estate. Spartan Invest provides turnkey investment properties that are sold with all necessary permits, inspections, and certifications in place, making the process as smooth as possible for the buyer.
Why Invest in Turnkey Real Estate?
As an investor, you can choose from a variety of opportunities, one of which is real estate. Turnkey real estate investing offers advantages unavailable with most other investments, including:
- Cash Flow – Real estate is one of the only investments that can begin to produce cash flow on day one. Rents hardly ever decrease over time, so you maintain the ability to increase your monthly cash flow in the future.
- Leverage – You can actually leverage your purchasing power, taking on less risk while collecting monthly rents and experiencing appreciation (higher property values) on someone else’s dime. Your borrowed money is going to work by allowing the tenants to cover all of the expenses associated with the property, providing you with both monthly cash flow and the annual appreciation increase as well!
- Principal Buy Down – The tenant is paying the mortgage monthly, which allows the principal amount of the loan to be reduced every year while the tenant(s) are paying for you to own the property outright.
- Tax Benefits – Any reduction (repairs, depreciation of assets) can be helpful when seeking tax deductions. Talk to your CPA, as this, for some, can be reason enough to purchase a turnkey property.
- Inflation – Real estate happens to be one of the best ways to keep ahead of the inflation curve. As inflation happens, two beneficial things also take place - your rents go up, as does the value of your property.
- Appreciation – The market is rebounding to pre-market crash values, which means that you get to ride the appreciation wave while experiencing a positive monthly cash flow if purchased correctly. We are not big proponents of purchasing property solely based on appreciation, but it is a benefit of buying and holding property over an extended period of time.
- IRA & 401K – You have the option to purchase investment properties with your IRA, provided you set it up correctly. This allows you the flexibility to invest your dollars where, when, and how you choose, and the investment is “secured” by real estate. Try using the word “secured” when investing in the stock market.
Rental property has historically increased in value, with values doubling every ten years in many markets. Coupling steadily increasing property values with the cash flow generated from steadily increasing rents provides the investor with an excellent opportunity to reap meaningful returns with less risk than other commonly available investments. Contact us today to start investing in turnkey rental properties!
How to Pick the Right Turnkey Company?
Choosing the right turnkey provider is crucial for an investor to ensure a smooth and successful experience. Here are some factors to consider when evaluating turnkey providers.