Turn-key properties are homes that have been renovated and remodeled and ready for immediate occupation. It is a relatively easy investment option usually by companies that buy houses in any condition. You start earning immediately once you purchase the house. It offers the benefits associated with the property market without the hassle. The turnkey houses are always under the care of a contracted property manager. The investor is not involved in the day to day running of the property. They are a desirable choice for many investors in the United States. Some companies have taken advantage of this and are fleecing investors. To ensure you get a fully renovated house, consider the following before snapping up the advertised turnkey property.
Property Managers
The property managers are the ones that do everything on your behalf. Most investors are not usually within the locality of their properties hence the need for property managers. They carry out any renovations; respond to tenants’ queries and source for tenants. They must have enough experience to pull this off successfully. They should be trustworthy and provide actual income and expenses statements. Ask around for a good property manager. Other investors can refer you to competent caretakers. Ensure they outline for you exactly what roles they will perform.
Return on Investment
Turnkey investments promise immediate returns. The houses are ready and start earning without the hassles associated with the traditional landlord. Ensure you remain with some money after the property managers have deducted their fees. Also, project how long it will take before you break even on your initial investment. Ensure you physically visit the premises to ensure that the investment is worthy of the selling price. Some people have been known to post glossy pictures on the internet while the reality is entirely different. Visiting the advertised house helps to ensure you don’t lose money to frauds. Shoddy homes with poorly done renovations do not attract tenants easily and lower your anticipated returns.
Running Costs
The thought of investing in property and just sit while the money trickles into your account is very appealing. Letting someone else do the work for you is also very attractive. The investor may lack time to engage in the day to day running. When you contract a property manager ensure that the fees they charge are reasonable. It should leave you with a fair amount of profit. Learn of all the expenses associated with the turnkey property. It should not exceed the income.
Insurance
Before buying that turnkey property ensure it has home insurance. Do not be duped by the glitzy marketing that most sellers employ. Ask the hard question and ask for proof of insurance, it will save you a lot of money later. It would absolve you from paying expenses if there was any incident with the tenant. It also protects your investment: you will get compensated in case of fire for example.
Always do your research carefully. Check to ascertain that the house is in a move-in state. Ensure that the property being advertised is not a scam. If you are satisfied with the condition of the house, only then can you invest.
At Sell My House Fast Houston, we can help you find the best property to invest in in Turnkeys. Call us today for advice.