Turnkey real estate properties provide investors a smart and secure avenue for building wealth through passive income. By utilizing the endless amounts of tools and resources available for free online, you can find turnkey properties that fit your needs and will launch your portfolio into the direction you wish to take it.

Turnkey properties afford real estate investors the luxury of investing both long-distance or closer to home. With the steady rise of remote investing, turnkey companies are able to manage the property for you and provide a great experience along the way. Depending on your local market, turnkey rentals might be an equally ideal investment to generate cash flow.

Ultimately, where you invest should be dictated by a few important factors:

• Average home price
• Average monthly rent
• Projected equity growth
• Projected population growth
• Projected job growth

Many investors develop an investment strategy that restricts them to their own market. However, with property management companies, you are likely to have a much higher level of success due to the experience, expansive team, and resources these companies bring.

When searching the real estate market for investment properties, due diligence is key. No matter which market you are looking to buy a property in, begin with a specific set of standards and features you want to have in a property and be prepared to do the research associated with them.  

When beginning your search, you’ll want to know the following:

• The market or markets you’re interested in. Steer clear from choosing the first market you think of or the one that has a lot of buzz around it at the moment. Look at the data and find the evidence that proves you’re making a sound choice for you and your portfolio.
  
  When choosing a market, look for:

• • • High rental population compared to homeownership population
    • High rental rates compared to mortgage payments
    • High affordability index rates
    • Low tenant default rates

• Your budget. Knowing what your budget is will help you define the type of property you want to invest in. If you won’t be paying in cash for the property, find the financial options you have available to you. If you plan to partner with an investment company, be aware that most reputable companies are likely to have established relationships with preferred lenders. However, know that you are never required to use theirs and are allowed to use your own private lender.

• The type of property you’re interested in. Whether it’s an apartment, duplex, or single-family home, having a set parameter will allow you to save time and hone in your focus on your search. In addition, the amount of maintenance required, quality of tenants, utility bills, and rent payments will fluctuate depending on the type of property.
  
  
• Reputable investment companies in the area you choose. There are hundreds of turnkey real estate companies, agents, and coordinators eager to help you buy properties. Do your research and don’t be quick to settle with one until they’ve earned your trust and demonstrated the quality they provide.

It’s easy for investors to think that the value of passive investment properties is purely rooted in cash flow. Unfortunately, it’s not that simple.

It’s important to remember that real estate is not guaranteed cash flow every month. It doesn't matter how good the company is or how good a company or deal looks on paper, it's still not a guaranteed return. When looking at cash flow on paper, understand it’s simply a mathematical equation.

Risk vs. Reward

Instead, for many passive investors, the true value of their turnkey real estate properties is knowing that they will get that cash flow as often as possible over the lifetime of their investment instead of how much they get each month. In other words, the value is in the security of their investments.

Security for turnkey real estate means a lack of vacancies, fewer move-outs, and therefore, fewer uncollected debts. A higher probability that the resident living in your property is not only reliable but happy and going to stay for a long period of time creates the value of security and deliverability of cash flow more often.

Turnkey real estate is an excellent option for investors just starting out or those looking to expand their portfolio. To enhance your strategy and maximize your investments, network with others in forums such as BiggerPockets and partner with companies who demonstrate that they share the same values as you.

At REI Nation, we’ve managed over 6,000 properties for more than 2,000 investors. But these aren’t just numbers for us. For over ten years, we’ve built long-lasting relationships with our vendors and clients with the utmost priority on providing exceptional customer experiences throughout each step of the investment process. 

From acquisition to property management, we handle every aspect of our turnkey properties and ensure our investors have ease of mind. We are transparent and keep our clients engaged through monthly updates and continuously work together with them to help strategize and achieve new portfolio goals. 

Our process has proven successful for our investors year-after-year:

• 5+ years average length of stay
• 72% of residents renew their first lease
• Less than 2% eviction rate
• Less than 3% average vacancy rate
• Less than 4% annual maintenance cost

Ready to start earning passive income on turnkey real estate properties? Connect with one of our seasoned portfolio advisors now.

Investing with a property management team is choosing more than just a company — it’s choosing an experience. True turnkey companies offer a full-service package with one point of contact for investors. High-level, competent companies will have many years of experience and do everything in-house.

Connect with an expert today.