Are you an investor in real estate, then you need to know how to find good turnkey properties
For those who are unaware, a turnkey property is a fully renovated home or apartment building that is purchased and immediately rented out by an investor. This type of property is normally purchased through a company that has prior knowledge and experience when it comes to the restoration of old properties.
A lot of people have this question on their minds: “How do you find a good turnkey property?” Well to simply put, any turnkey property is a good property if it meets your needs and fits the description of what you were looking for when you made the decision of investing in a property.
With that being said, there are some factors that affect the value of the property as a whole and make it a good investment. Here, we will discuss some of those factors that have a direct impact on the value and quality of the property;
Geographical Location of the Property
- Before you make the decision of investing in a property, you need to have a clear vision of what your end goal is. There are different categories of turnkey properties that are available at different locations. Location is the driving force that has a big impact on the value of the property. If you decide to buy a property in an A category neighborhood, then the surrounding area will have good quality schools and neighborhoods. Although the A category property sounds ideal, you have to keep in mind that this type of property will cost you a large chunk of change approximately in the range of $100,000 to $250,000.
In contrast, if you are looking for a property in an area where neighborhoods and schools aren’t important, you can invest in a C or a D-class property which will cost you about $40-$65k. So, the area of the property has a great impact on the price of the property and the probability of finding good tenants.
The Amount of Money you are Looking to Spend
- Similar to the geographical location, knowing your budget is also an important part of investing. If you have an exact idea about the amount of money you are looking to spend then this can make your property search relatively fast and easy. In addition to this, if you are not looking to pay for your property, you can find other financial options like investment companies that can aid you in this process.
Type of Renovations Required
- When you are interested in buying a turnkey property, you need to first monitor what kind of repairs or renovations are being done on the property. It is your job as an investor to properly inspect the property to make sure that everything is up to par. We all know that just because a property was recently renovated does not mean that it was renovated well.
Flippers do not live in the properties which are why most of the time they do not see building repairs as a priority. Their end goal is to gain profit and sometimes they try to spend as little money as possible to create a finished product by deploying second-grade contractors or materials. So, it is paramount that you examine everything properly and if something is not according to your standards, you can always skip the property and move on to the next one.
In the text above we have mentioned a few key factors that have a direct impact on if a property is a good or a bad choice for you as well as some important things you need to consider before you decide to invest in a turnkey property. Investing in turnkey property is a process that can be time-consuming and hectic if you are relatively new to the world of property investments and have no idea what you are doing.
But luckily for you, there are great turnkey management companies that are available all over America. They can help you in choosing a turnkey property that is within your budget and is best suited for your needs. If you have any questions about what turnkey properties are and how you can buy your own turnkey property today, then you can contact us at Turnkey Military. We deal with turnkey properties in North Carolina.