While investing in residential real estate holds a promise of a handsome monthly income, it requires particular management skills. In most cases, many people have neither the time nor the skills to do it right. As a result, some people venture into the sector only to have a bad experience while some prospective investors shy away. However, that should not be the case. With turnkey real estate investing, you now have the best of both worlds.
Peace of mind
Under this form of investment, a group of professional realtors buy and renovate residential houses and put them on the market. As such, they save you a considerable amount of time and ensure you have ready access to good units, explains an expert from Americas Housing Alliance, LLC. Without professional assistance, buying a house can prove tedious, especially for a beginner, as they are likely to overlook many critical issues. However, under such an arrangement, you are sure of a quality purchase.
Other than just selling you a house, the agents also handle the management of the houses. They take care of the many aspects of the business like advertising for and vetting the potential tenants, as well as carrying out routine maintenance. Since your rental income is as good as the resident’s ability to make good on their payment, vetting a tenant is crucial to your investment. Similarly, houses in a bad shape have low occupancy rates and high tenant turnover.
You're under no obligations
As the agent looks after the smooth running of the unit, you are free to do as you please. Therefore, you can own properties in different cities and state and have them turn profitable. Lack of proper management often precedes the downfall of many rental units, especially when the owners are far away.
Turnkey property investing allows people to invest profitably in the real estate sectors even when they do not have sufficient time and experience, or they live in a different city.