Top 5 proven tips for buying your first turnkey rental property discussed below from real estate experts
Turnkey properties can be a great investment that you can add to your portfolio as a new and upcoming investor. If your end goal is to increase your overall passive income, then investing in a turnkey property is the right choice for you. If you are a new investor, then there is a great chance that you have very little or no idea about how a turnkey investment works and how do you go about finding a turnkey property that is best suited for your needs.
But luckily for you, we have compiled a list of proven tips that can greatly help you out when you are looking to invest in your first turnkey property as they will ensure that you make a profit with your turnkey investment. These tips are discussed below;
Tip 1: Choose a Market to Invest in
- If you are looking to invest in a turnkey property, chances are that you live in an area where you cannot find any good rental properties that can provide you a good and stable cash flow. The first thing that you need to do is to search for a city and an area where you want to buy a turnkey property. Proper research and due diligence can make this entire process a thousand times easier for you.
Tip 2: Arrange Financing
- After you have chosen your desired location to invest in, the next step is to secure your financing. If you do not have the funds to buy a turnkey property, there is no point in wasting your time to do all the research to begin with.
If you are looking to pay all cash upfront, then you can ignore this tip. For a large majority of new investors getting proper financing has to be the top priority. It is important that you find a lender who is licensed in the state where you want to buy a property in. It is also a great idea to find a lender who has been licensed in multiple states because if you want to become a successful investor in the long run you might have to invest in multiple properties.
Tip 3: Finding a Good and Reputable Turnkey Provider
- The next step is to do proper and extensive research and find a reputable turnkey provider. There are all types of turnkey providers out there, some of them are bad, some are good, and some are great but it is your job as an investor to find a provider that will be the best choice for you based on your needs.
Ideally, you want to look for a turnkey provider who will have your best interest at heart and wants to establish a long-term relationship with you. There are all types of websites available like reviews.com where you can read what people have said about various turnkey providers which will help you in making a decision.
Tip 4: Visit the Market and your Turnkey Provider
- It is a great idea to visit the city and the area where you want to buy the turnkey property. You should also meet your turnkey provider and review the properties that they are working on. You need to properly inspect every single property that you are shown so that you can get a clear idea of what you are buying before you decide to finalize a deal.
It is also crucial that you do proper research about the community in which your desired property is located. Make sure that you stay far away from areas that have a high crime rate as the properties in this area are less likely to get rented out which means that if you buy a property here it can end up being a failure.
Tip 5: Closing the Deal
- Once you have found a property that fits your criteria, the next step is to sign the contract and make the purchase official. At this point in time, you will have to sign a required purchase agreement which is often done through the title company or an attorney.
It is always a smart investment idea to include an addendum into the contract that allows you to back out of the deal if the appraisal or the inspection does not meet your specific set of requirements.
- When you finalize all the paperwork and sign all the necessary documents, you will be the proud owner of your own brand new turnkey property.
If you are located in the North Carolina area and have any questions or queries about a turnkey property or if you looking to purchase a turnkey property of your own, you can contact us today at Turnkey Military.