4 Surprising Facts About Turnkey Rentals
Turnkey rentals are relatively straightforward as far as investment vehicles. An investor buys a property from a turnkey rental company and gets passive income—hopefully. But there are surprising facts about turnkey rentals that not every investor fully realizes. We’ve identified the most surprising things about turnkey rentals based on investor feedback and what we’ve gleaned from our social media presence. Since we like all our investors to be fully informed about the awesome opportunities inherent in this type of real estate investment, here are the four most surprising facts about turnkey rentals that you need to know.
1. The Turnkey Rental Cash Flow Number Includes Property Management
The number one confusion regarding turnkey rental numbers is cash flow. Many investors and would-be investors still think that their property management costs come out of their cash flow number. At MartelTurnkey, when you see the positive cash flow you get each month from our turnkey rentals, that includes your property management cost. We firmly espouse having a property management company take care of the day-to-day responsibilities of your turnkey rental. In fact, when you buy a turnkey rental from MartelTurnkey, there’s already a property management company in place. When we run the numbers for our investors and publish those numbers on our site, that cash flow figure you see is all-inclusive of your property management cost.
2. Once You Buy One Turnkey Rental, You’ll Probably Want More
At MartelTurnkey, we’re proud to say that 80% of our clientele are repeat customers. We’d like to take all the credit for making the experience as seamless and enjoyable as possible, but it makes sense from an investment standpoint, too. Once you buy your first turnkey rental, you’ll immediately see that all the good things you’ve heard about this kind of investment are true. The passive income, the pleasure of having a property management company handle the day-to-day tasks, and just the feeling of security you get from knowing that this is something concrete you can always own – there’s no comparison. It may surprise you when you find yourself on our site again looking for your next turnkey rental. Most investors come back wanting more, and we’re happy to oblige.
3. Sometimes You Can Get Seller Financing For Turnkey Rentals
If you want to buy a turnkey rental but lack the resources to go the traditional route, you might be able to get seller financing. Deals like this are less common, but they do come up. For instance, at MartelTurnkey, we recently had a beautiful, cash-flowing 4-plex turnkey rental for sale with seller financing. It was quickly scooped up, but we anticipate offering more of these types of deals into 2020. If you’re in the market for a seller-financed turnkey rental, be sure to shoot us an email with your contact information so we can give you a heads up as soon as one becomes available again. Seller financing is convenient for anyone who might lack the W-2 income necessary for traditional financing or who has other buying challenges.
4. A True Turnkey Rental is Completely Turnkey
If you’ve been looking at turnkey rentals through other companies and you’re being presented with an inspection report and a long list of needed repairs, that’s not a true turnkey rental. Unfortunately, the turnkey rental industry has a few companies that are simply flipping distressed properties and calling them “turnkey.” With a true turnkey rental, you shouldn’t have to do anything at all to the property to start renting it out immediately. At MartelTurnkey, all of our properties already have paying tenants in place when you buy them.Whether you buy from us or another company, though, know that a true turnkey rental won’t necessitate you spending money on repairs right away. Our turnkey rentals at MartelTurnkey are fully and recently renovated, in excellent condition. If ever in doubt, just click on the property page and then click on “Renovations Completed” for a full list of what we did to get the property in tip top shape for you.
If you have any questions about turnkey rentals, please don’t hesitate to contact us. A lot of companies say this, and then you end up getting a voicemail and sitting on hold for 10 minutes. At MartelTurnkey, we answer our phones with a human being and we’re ready to answer any questions you have, no matter how seemingly trivial. We love hearing from new or existing investors and we look forward to working with you in 2020!