3 Reasons Why NOW Is The Time to Invest In Turnkey Rentals

October 10th, 2022

There’s no doubt about it — interest rates are up, demand is down, and we’re starting to see prices dip as the market finally starts to cool down. 

 

Is the party over? Has the time come to hunker down and sit on your cash?

 

Far from it. Experienced investors know that the party is just getting started. Here are three reasons why now is the perfect time to consider buying a turnkey rental to start — or add to — your real estate empire.

1. The Time to Buy is When Everyone Else Hesitates

We know it’s scary to go against the grain. When everyone else is hunkered down and hoarding their cash, afraid of their own shadow, you’re the one “idiot” buying things. The market just crashed! How can you even think of buying things?

 

But when markets dip, that’s the best time to buy. After all, things are cheaper and have room to grow. The worst time to buy is in a hot market, at peak FOMO, when every offer sparks a bidding war and everyone is scrambling to get properties.

 

In an environment like this, with interest rates rising, buyers are a lot more hesitant. This means less competition, as well as decreased demand. There are more smoking deals out there than at the beginning of the year … and fewer people vying for them.

2. Rates Are Up … But Your Tenant Pays Your Mortgage

Yes, those mortgage rates have gone up in the wake of the Fed’s historic Federal Funds rate increases. Your mortgage payment will be higher than it would have been at the beginning of the year. 

 

This is somewhat bad news for homeowners (though they have good news as well — they will face fewer bidding wars too). After all, they have to shoulder the entire mortgage burden themselves.

 

But as a real estate investor, you don’t even pay your mortgage. If you buy right, your tenant pays your mortgage vis a vis their rent. As interest rates have gone up, so too have market rental rates, leaving landlords with little net change in cash flow. 

3. If Rates Go Down, Your Value Will Skyrocket

If you buy at a dip or a low point in the cycle, you’re very likely to experience robust appreciation over a window of 2-5 years. But if the Fed loosens up the rates that they just tightened, you might not even have to wait that long.

 

If rates go back down, demand will explode and your property’s value will skyrocket. You can then sell for a windfall profit or refinance at those lower rates, either to reduce your mortgage payment and increase your cash flow … or pull out cash and buy more property. 

 

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This is the buying opportunity of a lifetime. Don’t sit on the sidelines. MartelTurnkey is here to make it easy for you. We’re hard at work shaking every deal possible out of our carefully-chosen markets, and we have some screaming prices in store for you — which means more cash flow, more appreciation, and more ROI. 

 

If you’re even considering getting involved, don’t be shy — drop us a note! We’ll walk you through the whole process.

 

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