I also am buying fully
rehabbed turnkey properties, so I will use the 5 % value for repairs.
Not exact matches
One thing I have found from some
turnkey providers (I don't say all because I haven't talked to all obviously) is that they buy
properties for what could be pennies on the dollar, pour money into
rehabbing, and then sell at a premium... so they're fix - and - flippers.
Turnkey rentals are a rental that you purchase from a company that has bought a house,
rehabbed it, put a tenant in it and then manages the
property for you so that you are not...
Put very simply,
turnkey real estate investing allows real estate investors to invest in performing
properties that are either new or fully
rehabbed with renters already in place; all that needs to be done to begin generating revenue is to «turn the key.»
But to Smartland,
Turnkey is more of a process which includes the purchase, renovation or
rehabbing of an existing
property, the leasing and then the sale of the
property.
With
turnkey, you trade that potential profit for being almost entirely hands - off - think of that earned - equity in the DIY process as being your paycheck for all the work you do finding and
rehabbing and selling or managing the
property.
If a
turnkey provider says that they have completely
rehabbed the
property then ask for before and after pictures along with any parts receipts and invoices for work performed.
Make sure the
property has been
rehabbed to
turnkey quality that will maximize your cash flow (roof and HVAC updated, ceramic tile it kitchen and bath, vinyl plank hardwood in high traffics areas, durable carpet installed in bedrooms, external fences and buildings addressed during the rehab, supply hoses replaced under the sinks, etc) otherwise your cash flow will go to maintenance