Should you buy a turnkey investment property?
What is a turnkey investment property? It’s an investment property that does not require any work on the property before you can begin renting it. The seller of that investment property has done all the renovation and restoration that’s needed for the property so that once you purchase it, you can hire a property management company and begin to rent that property out right away.
Is this a good decision for you though?
There’s no doubt that many investors prefer to purchase properties that they can fix up themselves but turnkey properties aren’t going away anytime soon that’s why in this article we will provide you with information on how to choose a turnkey investment property.
What to do before investing in turnkey investment property
Research the location – Even though you may be able to purchase a turnkey investment property for $30,000, and it looks like a fantastic deal, you should always first research the area where the property is located, you should even visit the area in person before you decide to invest in that property or not.
Why? The answer is simple, even though the area may look and sound like a good neighborhood on paper, you always want to research it and find out the specifics like shops or stores nearby, schools, amenities, and also the crime rate of the area as well.
Besides researching the specifics of the area where the turnkey investment property is located, you also want to do some research into other properties nearby to find out what comparable properties are currently selling for. This step is important because, even though you may be purchasing the turnkey investment property for (X), other properties in the area could be worth far less, or the area as a whole could be economically depressed.