If your investment strategy is to be passive, investing in Turnkey Properties is definitely a good method to consider. Until now, the concept of “turnkey property” is still very loosely-defined to something as, “a property that is already rehabbed, has a tenant placed, and cash-flowing.”
There are a lot of so-called “turnkey providers” out there, and most of them are using this for as a marketing term. But regardless of what they call themselves as, when it is time for you to invest in turnkey, you should evaluate the providers with at least the following criteria:
- Does the provider have a sustainable source to keep the deal flow going?
- Does the provider present turnkey property already rehabbed with no / minimal deferred maintenance?
- Does the provider have property management in place to help you with rent collection, work order management, and eviction needs?
- Does the provider have handy man access to handle the work orders?
- Can the provider provide exit strategy guidance if you ever need to sell?
At the end of the day, a turnkey provider should provide all-around services for your real estate investment, that starts with purchase, continues with on-going management, and ends with a sale (if needed). As an investor, you should just need to do your due diligence, analyze and select which property to invest in, pay up the money, and collect the cash flow month after month!
We read Christopher Clothier’s book “The Turnkey Revolution” and it gives tremendous insights on you should approach turnkey property investing. We recommend you to read it too.