Turnkey rental properties are an excellent investment choice for those who do not have the time or inclination to rehab and maintain the property themselves, or for investors who live far away from their purchase. These homes have been completely rehabbed by a company that specializes in turnkey real estate, so the hard work has already been completed. Often, these properties even have tenants in place, so there is little to do beyond signing paperwork and picking up the keys.
While these investments do require a lower time investment than other real estate purchases, there is still work to be done, namely in the form of due diligence. Before you commit to buying a turnkey rental, take these three tips into consideration.
- Inspect The Property
It is important to visit the property in person to ensure that what you are buying is what you are paying for. It also allows you to explore the neighborhood, which will allow you to set appropriate rental rates and make sure that the area is desirable to future renters. Make sure you contract with a professional, trustworthy home inspector; it is imperative that you learn the good along with the bad so that any violations or repairs can be addressed quickly.
- Interview Your Property Manager
You are trusting your property management company with protecting your investment, so be sure that you are working with someone you can trust to do the job correctly. Ask for referrals to their other clients so you can get a realistic feel for the way they work.
- Interview Your Tenants
Whether you have an existing rental agreement or your property manager will place a tenant after you purchase the home, be sure to talk with them in person. It is imperative that your tenants be a good fit for your property and that your renters will respect and protect your investment. If your tenants prove to be problematic, the eviction process is expensive and time-consuming; it is better to make the right choice in the first place.
For more information about purchasing turnkey rental property, contact Liberty Commercial Capital today.