When you’re building an investment property portfolio, you’re constantly on the lookout for the next fantastic property that will help bring in passive income. For those who are new to real estate investing, the process of learning where to buy turnkey rental properties can be fraught with trial and error. Thankfully, by educating yourself and taking steps to reduce risk, you can avoid many of the common pitfalls of real estate investing.
How to Know Where to Buy Turnkey Rental Properties
1. Do Your Research
Just as with purchasing a home to live in, knowing where to buy turnkey rental properties starts with doing your homework. Location is always the number one consideration (regardless of price). It will help determine how rentable your property is and how much you’ll be able to charge for rent. Pay attention to amenities in the area that make a place more livable (things like public transportation, shopping, parks, schools, and restaurants). The crime rate is also an important factor. Also check into monthly rental and vacancy rates for other rental properties in the area. This will give you an idea of how much you can potentially make each month, as well as if you’re likely to struggle to keep the property rented.
If you plan to engage in remote real estate investing, it’s especially helpful to find an experienced property management company that works in the area, as it’s virtually impossible to run and maintain things from afar without assistance.
2. Search for Real Estate Auctions
If you’re an investor wondering where to buy turnkey rental properties at lower prices, seek out real estate auctions to see what’s being offered. Keep in mind that the rules for purchasing from an auction are completely different than a traditional real estate transaction. The auction process is fast-paced and you need to have cash in hand and ready to go or have a banking relationship and financing set up before your bid is approved. Closing will typically happen within 30 to 45 days. Also keep in mind that because many turnkey properties sold at auction are occupied, you likely won’t be able to see the inside of the property until after the sale, so you need to be comfortable with purchasing the property “as-is.”
So long as you keep these expectations in mind, real estate auctions are an excellent way to find investment properties at a price that’s lower than they’d typically be offered on the regular market.
3. Seek Help from Experienced Professionals
One of the best ways to figure out where to buy turnkey rental properties is enlisting help from professionals who understand the investment real estate market. While a typical real estate agent may have some knowledge about factors involved in purchasing rental properties, it’s best to look for a firm that specializes in investment properties. There are different considerations involved for buying a home to live in versus one to rent out, so seeking out someone with experience in turnkey properties is a big plus.
It’s an added benefit if your turnkey investment advisors also handle property management in-house. In addition to being able to turn the day-to-day running and upkeep of your properties over to someone you trust, this also demonstrates that the company is in to help their clients for the long haul, and not just to sell a property and move on to the next customer.
This is why Smartland helps our clients find the best turnkey investments, can manage the properties for them if need be, and can even assist with remodeling and renovations when it’s time for a property to be upgraded. We find that working with one company gives our customers a full range of expertise and seamless client experience throughout the process.
Understanding where to buy turnkey rental properties is just the first step. By working with experts, you’ll have someone always helping you turn your real estate portfolio into a lucrative form of passive income.