It’s hard enough to decide what property to invest in with so many options available out there, and one important choice to make is whether you want a property that you can rent immediately after buying which will most likely have a big price tag or if you are willing to take on the challenge of a cheaper property that may need more work.
If you are at a loss with these two options, this newsletter is for you! Continue reading to find out the pros and cons of buying a turnkey property.
Pros
Quicker return
A turnkey property will mean that it is ready or nearly ready to have a tenant move in, which means that you will be able to start seeing a Return of Investment faster than with another type of property.
Not only will you be able to get a resident quickly, but you will also be able (in most cases) to skip time-consuming processes like the make ready/rehab process, since you will be assured that the property is in good condition.
No hassle
If you want a property that is easier to handle, then a turnkey property is definitely for you. Time is money, and you will be saving a lot of time without having to worry about restorations or repairs needed or having to spend time getting to the property to check on it.
Less repairs
A newly built or refurbished property usually means that it will not have many big maintenance issues in the first couple of years.
Having less repairs to be done, also means less liability and risk for you and your tenant in the short and long term.
Cons
Price
As mentioned before, the price tag on turn key properties will likely be a bit steeper than for other properties, since they have been finished recently or have undergone renovations.
The price may be worth it for the reasons above, but it still means you may need to tighten your belt a little to be able to afford it upfront.
Less customization
As a seasoned real estate investor, you may have hacks you already know work on properties or you may have preferences on how the layout should look like.
Turnkey properties are usually taken as they are, and there is little space to pivot and change things around.
You need to remember also that not every turn key property will be the same, you need to read the fine print of every contract carefully to see if the property is worth the price.
