If you invest in rental property, one of the biggest advantages you have is depreciation. You may have heard of some of the “tax advantages” of real estate investing. Now, the US tax code is over 60,000 pages long. Even CPAs don’t know every word of it.  But one part of the tax code every real estate investor should understand is that the IRS allows you to claim “depreciation” of business assets as a tax write-off. That includes rental real estate.

What Is Depreciation? 

 

What does depreciation mean? It essentially means you can write off “wear-and-tear” of the property as an expense. The idea is that the asset becomes less valuable every year due to this wear-and-tear, and you can deduct that loss of value.

 

Of course, one thing we know and love about real estate is that it often gets more valuable over time, not less. Yes, wear-and-tear might mean extra repair costs, but with the right property, your rental income will more than cover that.

 

In other words, the IRS is allowing you to write off an expense that doesn’t really exist. It doesn’t take money out of your pocket … but you still get to deduct it from your taxable income, lowering your tax burden every year without you having to spend extra money to get that deduction!

 

Homeowners don’t get to do this … only landlords. By law, you can’t take depreciation on your personal residence, just rental property.

How Much Do You Get to Write Off for Depreciation?

 

The IRS sets different “depreciation schedules” for different classes of assets. For real estate the current depreciation schedule is 27.5 years. Some real estate investors, especially buyers of large buildings, use a method called cost segregation to take accelerated depreciation, but for most small-portfolio landlords, 27.5 years will be the schedule. 

 

What does this mean? It means that for 28 years, you can depreciate 3.636% (100% ÷ 27.5 years) of the property’s depreciable cost basis.

 

The initial cost basis is how the total cost you paid to buy the property — purchase price, closing costs, initial repairs and/or rehab or renovation. It is the “book value” of the property. 

 

To discover your depreciable cost basis, subtract the value of the land. Land cannot be depreciated because it isn’t considered subject to wear-and-tear. 

 

Every year, if you deduct depreciation, you must subtract that depreciation from the cost basis to produce an adjusted cost basis. 

 

Let’s say you bought a rental property for $600,000 all in (purchase price, closing costs, rehab, etc.) and according to the tax assessment, roughly 16.6% of that property’s value is in the land. That means the initial cost basis is $600,000, the depreciable cost basis is $500,000.

 

In the first year, you can write $18,180 (3.636% of $500k) in depreciation off your taxes. Nice! You should owe a lot less, or get a much bigger refund, in April. Your adjusted cost basis is now $581,820. You can do this for the next 27 years, until the adjusted cost basis is $0.   

Depreciation Recapture

 

There’s a downside to depreciation. If you sell the property for more than you paid for it instead of less (every real estate investor’s goal) you are subject to a rule called depreciation recapture. 

 

Basically, the profit above the initial cost basis is taxed as a capital gain. However, the profit over the adjusted cost basis (adjusted down for depreciation, that is) is taxed as ordinary income, usually a higher rate. 

 

Fortunately, depreciation recapture is usually capped at 25%. If your profit is high enough, you won’t be too upset that you settled for the short-term benefit of lowering your annual tax liability. 

 

Nevertheless, consult with your CPA. You are allowed to write off less depreciation than the maximum allowed by the schedule. You are even allowed to write off no depreciation at all. In certain circumstances, that might be the better strategy. 

 

If you want to put the power of depreciation to work in your tax and investing strategy, reach out to MartelTurnkey! We help both beginner and seasoned investors — in state and out-of-state — to build wealth, create cash flow, and reduce their tax burdens with turnkey rental property in Cleveland, Memphis, St. Louis, and Detroit.

If you have visited MartelTurnkey.com in the past 6 months, or spoken to a sales team member, you know that the financials we provide on each house have consistently shown a 10% cash-on-cash return. Visit today and you will see the numbers are much different, showing a 20% – 23% return.  This change in methodology is long overdue, and a more accurate representation of the investment’s anticipated return. We know you’ll want to understand what’s changed.

 

Historically we have analyzed properties to ensure a specific cash-on-cash return for our customers. Most recently, it has averaged 10%.  The calculation is quite simple: Take the rental income and subtract the fixed costs (comprised of principal and interest, insurance, property taxes and finally property management fees).  On average the net cash flow is between $200 and $300 per month.  When you multiply this number by 12 months, you get $2400 to $3600 in annualized cash flow.  This amount equates to 10% of the down payment you have put on your house which would have been between $24,000 and $36,000.  Therefore we have told you you can expect a 10% cash-on-cash return when you buy a  cash flowing rental property at MartelTurkey. 

 

The Missing Factor: Appreciation

 

A 10% return on an investment is very good, especially when it is consistent year after year.  But in reality, the numbers are far better than this on your turnkey rental property, due to appreciation.  We noticed that our competitors are including appreciation for their calculation of returns. To help you compare more easily we decided to include appreciation as well.  It is an important part of the experienced investor’s formula for success. In our markets many of our investors expect to do a cash-out-refi within 5 years and then reinvest their original funds (the $24,000 to $36,000 we previously mentioned) into another house.  In order to do this, their house has to increase in value by this same amount. That growth is the appreciation. So, while our calculations and spreadsheets are very simple to understand, they don’t account for a major consideration which is appreciation. 

 

How Did We Adjust For Appreciation?

 

Realizing we need to add appreciation into our calculations, we had to determine what percentage (%) would be most accurate and conservative to use.  While we have been seeing anywhere from 10% to 19% appreciation in our markets in the past few years, this is a short moment in time and not the best for predicting future long term growth. Instead we decided to look at appreciation in our markets since 1995. The resulting percentage is different in each market. You may be wondering why we went back so far in time?  Well, as you know, the real estate market crashed in 2008 due to the financial crisis so by going back 27 years,  we are smoothing out these bumps that will give us the general trend on real estate appreciation . We are being super conservative but we prefer it this way. Additionally, these appreciation rates are based on a large geographical area, such as a county or metropolitan area.  We have our dedicated teams on the ground in the cities where we do business and they keep us apprised of what is going on.  We pick and choose where we invest, on a neighborhood basis, to maximize your returns and investment success.

 

So now when you look at the financials for a MartelTurnkey rental property, you will see a cash-on-cash return of 20% to 23% with the assumptions clearly written out, including the appreciation.  More knowledge is always a good thing.  We feel this change is long overdue and gives you a better indication of what you can expect from your investment property in the long term.  Please reach out to any of the MartelTurnkey team for more information or to put a MartelTurnkey property under contract today.  

 

For anyone newly getting into real estate investing, there may be some question as to where are the best places to buy rental property. Your research will uncover a bevy of opinions online, but the only opinions you should listen to are those with actual experience in terms of where are the best places to buy rental property. Once you begin listening to the experts, you’ll quickly see that certain answers keep coming up again and again. At that point, you learn the benefits of buying out of state turnkey rental properties.

 

Where Are the Best Places to Buy Rental Properties?

 

We have spent years now combing through the rental property markets in various cities throughout the U.S. Of course, the real estate market fluctuates, which is why we are constantly analyzing various markets. A handful of real estate markets have hit all the criteria that we use to determine if an area has economic viability in terms of where are the best places to buy rental properties. These are:

 

 – Cleveland, OH

 – Memphis, TN

 – St. Louis, MO

 – Detroit, MI

 

There will be others in the future, but for right now, this is where MartelTurnkey’s markets are, and where we offer quality, cash-flowing turnkey rentals for sale.

 

Ability to Diversify Your Portfolio

 

A big reason why you should buy out of state rental property is because it allows any investor to diversify their portfolio. Every financial expert agrees that diversification is essential for a healthy portfolio. It’s smart to have real estate as one of the assets in a portfolio, but it’s not always possible for investors since real estate can be cost prohibitive. But when you invest in out of state rental property, all of a sudden it’s possible—not only to afford the real estate—but to have a source of passive income straight out of the gate. Out of state rental properties enable even the most modest of investors to diversify and shore up their assets. If you’re interested in diversification through out of state rental property, you don’t need to worry about where are the best places to buy rental property, because MartelTurnkey has already got that part all figured out for you.

 

Lower Operating Expenses

 

Buying out of state rental property almost always guarantees lower operating expenses than if you bought where you live. Everything that is needed to operate your turnkey rental property, from the property management company to the property insurance, to the hardware and materials you may need over the years to purchase to maintain the property will be at the local cost, not in the more expensive market where you likely have your private residence. And remember that lower operating expenses mean you get a better ROI than you would if you tried to buy rental property in a pricier market.

 

When you’re ready to stop asking where are the best places to buy rental property and start looking for a turnkey property to buy, contact MartelTurnkey. We have a pipeline of turnkey rental properties for sale in Cleveland, Memphis, St. Louis and Detroit. Why not browse through our offerings and see what catches your eye? You could be sitting on a new source of passive income in as little as 30 days. 

 

As you know, MartelTurnkey has been investing in Cleveland for quite some time now. We’ve seen our investors’ properties increase in value and, in our estimation, there is a ton of value in the Cleveland rental market. We are happy to announce that in mid-June of this year, we’re offering a custom, personalized tour for up to 20 interested investors. Transportation and meals are included and, if you purchase a property—any property—from us through the end of 2022, your registration fee will be fully refunded! What could be better?

 

Who is the Tour For?

 

This tour might be a good fit for you if:

 

 – You are financially ready to invest but still have questions

 – You’re still a little hesitant about investing out of state

 – You like to know more about the places where you invest

 – This will be your first turnkey purchase

 – You value face time with your investment partners

 – This isn’t your first turnkey rodeo, but you want more first hand info about the Cleveland market

 

And frankly, this tour might be for you if you are just looking for an informative and fun weekend away!

 

How We Came Up With the Idea

 

The idea of offering a tour of one of our investment markets has been percolating for a long time. It stemmed from a bus tour we did in Memphis a couple of years ago. At that time, it was just us and some key personnel, but we had such a great time that someone mentioned the idea of offering a similar tour to investors. We brainstormed about what it might be like, and it sounded like a lot of fun. Fast forward to today and Antoine brought up the idea again at one of our weekly family meetings. We decided that now is the right time, especially after all the depressing lockdowns and isolation from COVID. It’s time to get together again and make good things happen in 2022!

 

Key Benefits of the Tour

 

Apart from the fun of getting to meet the Martel family up close and personal, there are a number of key benefits of the tour. The first one is of course….that you get to meet the Martel family up close and personal!  Unfortunately, Etienne Martel won’t be along for the ride because he is busy overseeing our turnkey property renovations in Memphis, as we wrote about. But you’ll get to meet and spend time with Eric and Lynn and Antoine. If you ever watch Antoine’s YouTube videos or Eric’s YouTube videos, you may have a small sense of what they are like, but in person it will be even better! Plus, you’ll get to meet and speak with Lynn, the Martel family matriarch who keeps it all together for “the boys” behind the scenes. She’s also part of the sales team and an expert on all the properties, so you can learn a lot from Lynn! You can also learn more about how you’ll be spending time with the family and other MartelTurnkey employees when you read through the itinerary below and on the official tour page. But rest assured, this isn’t like a Tony Robbins event where you spend most of the time with his representatives. You’re getting the full, personal treatment, just like you were one of our family!

 

Okay, another key benefit of the tour is that you’ll get to see—in person—the quality of renovations that MartelTurnkey provides. We’ve always said that we don’t do slap and tape renovations that fall apart five minutes after you close on the deal. On this tour you’ll get to see for yourself just how solid our rehabs are. Heck, they’re so sturdy and attractive, you might be tempted to buy one for yourself to live in! Now, we aren’t bringing anyone through heavy construction zones, so you can safely leave your hard hat at home. But you will get to see properties where the finishing touches are nearly completed and where there is not yet a tenant in place. These walk-throughs will allow you to see for yourself the quality of renovations that we pride ourselves on.

 

Another key benefit of the tour is that you’ll be able to view certain exclusive turnkey properties that are not on our website and not being shown to members of the general public. You’ll be able to have first dibs on the properties you see, as well as an opportunity to purchase a property that weekend if you like. 

 

The Deets

 

Down to the nitty gritty of the actual details. The full details are on this page of our website, but below you’ll find some extra helpful info.

 

We have space on the bus for only 20 investors, so be sure to register to reserve your spot right away! Like…now! Seriously, stop reading and go register!

 

On the Martel side, the Martel family, plus the sales team and other team members whose names you may recognize will be on the tour. Essentially, you’ll have access to our sales people, our customer service people and our property analyzers. 

 

General Itinerary

 

The itinerary is pretty straightforward and please note that it may change slightly between now and mid-June.:

 

June 10th

 

We hope to have all of our investors fly in on Friday. 

 

7 PM – We’ll have a welcome event in the hotel; a meet and greet to get acquainted.

 

June 11th

 

9:00 AM  – Official welcome breakfast in the hotel with introductions

 

10:00 AM –  The bus arrives to pick us up at the hotel and the tour begins!

 

During the tour we’ll drive around and visit the many favorite MartelTurnkey turnkey neighborhoods, such as Maple Heights, Euclid and Metro Cleveland, as well as some hot spots and area attractions. This will include the beautiful and fun Riverwalk area, a vibrant social scene that greatly enhances the quality of life in Cleveland.

 

We’ll also walk through several houses that are completed or near completion so you can see the neighborhoods and renovation standards in person. 

 

We’ll give extemporaneous highlights about new developments or long time businesses/employers in the area. This will help investors see why we’re so excited to be investing in Cleveland and why it’s a great area for you to invest.

 

1:00 PM –  Stop for lunch 

5:00 PM – Tour Completes

7:00 PM – Dinner together in a popular Cleveland area

 

June 12th

 

9:00 AM – Breakfast in the hotel 

9:30 AM – Discussion, Q and A and going over the numbers and deal analysis and answering questions for everyone. Our sales people will be available so you can sign a sales contract right there if you are so inclined.

12:00 PM – Official end of the weekend tour and free time, or you can leave as you wish 

 

* Please note that the itinerary is subject to slight alterations.

A Word About Safety Precautions

 

Because of the situation we are in as far as COVID, we currently  require that all participants be fully vaccinated. We are doing this out of an abundance of caution and out of respect for all of our investors, the crews we may interact with on property sites, and of course the general public. Thank you for your understanding. We will follow state and city ordinances at the time of the tour.

We hope you will join us on this fun and informative tour in Cleveland, Ohio in mid-June. We promise you’ll enjoy yourself and get some real value out of the experience! We’re sure you have more questions, so please reach out and contact us. We’ll be happy to answer anything and give you as much information as you need to make an informed decision!

The recent spate of tornadoes and other natural disasters has devastated numerous communities across the U.S.. Along with the large number of lives lost and families who will be grieving over the holidays rather than celebrating, many people will begin the process of trying to rebuild.  To do this, they will be working with insurance companies to estimate damage, file claims, and wait on checks that will help them begin anew.  As a real estate investor and property insurance policyholder, you may be unaware about the differences between an insurance adjuster and a public adjuster.  Learn about these crucial differences and how they may impact any claim you need to make in the future.

 

Advocating on Your Behalf

 

When you work with a public adjuster, the biggest benefit is you will have a person who will advocate on your behalf to ensure your claim is approved and that you get the maximum amount of money you need. Unfortunately, insurance adjusters aren’t interested in advocating for you. Remember, whether they are actually employed by the insurance company or have been contracted to work for your insurer, their goal is to save the insurance company as much money as possible, which translates to giving you as little as possible or denying a claim altogether.

 

Capitalizing on Stress

 

Sadly, many insurance adjusters realize the people with whom they are dealing are filled with tremendous amounts of stress and may use this to their advantage in terms of offering quick payouts for too little money. However, a privately-hired insurance adjuster is more concerned about doing the right thing for a policyholder, and will examine your property insurance policy to ensure the claim filed will be geared toward gaining maximum compensation.

 

Underestimating Damages

 

When an insurance company’s adjuster begins looking over a property following a natural disaster, it is not uncommon for some of them to underestimate or overlook damages. In doing so, a claim may be unfairly denied, or the payout could be short of what it should be. Many investment property owners are not experts in home repairs and estimating damages on a large-scale, it’s only natural you would take their word in these situations. Rather than risk this scenario, you should consider hiring your own public adjuster. Since their goal is to get your claim approved for as much money as possible, they will provide a comprehensive appraisal of your property damage, begin negotiations with your insurance company, and fight hard to reach a settlement that is fair and equitable.

 

Exceeding Expectations

 

If you hire a public adjuster, they will not only look over your policy in great detail and explain whatever aspects you may not fully understand, but also stand firm during negotiations.  Remember, public adjusters work for you, not the insurance company. They act in your interest only. In fact, it is sometimes possible for a public adjuster to get a policyholder not only the maximum amount allowed by their policy, but amounts that exceed those stated in the policy.

 

Licensed and Certified

 

Just like traditional insurance adjusters, public adjusters are completely licensed and certified, meaning they have the qualifications and experience needed to serve you in what may be the most difficult experience you have ever encountered. Also, don’t be confused if an insurance company adjuster introduces themselves to you and tells you they are an independent adjuster. It may be that they are an independent insurance adjuster. But if the insurance company is paying them, they aren’t working solely in your best interests.

 

Do Your Research

 

Even if your insurance company sends one of their adjusters to your scene, don’t assume you automatically have to accept what you are told regarding the damage estimate and status of your claim. You do have to let them do their inspection, but you don’t have to accept their findings. Doing your research and getting an independent public adjuster to look over your property can be the difference between night and day in terms of the money you receive to rebuild your property. Finally, if an insurance adjuster offers you a check on the spot, don’t endorse, cash or deposit the check yet. Doing so implies acceptance of the claim amount. Hold onto it until you can get a public adjuster out to assess the situation.

 

Unfortunately, you never know when Mother Nature will unleash her wrath. If your investment property is damaged by a horrific tornado or other disaster, rely on the assistance of a skilled public adjuster.

 

 

 

Customer Testimonial:

 

“I highly recommend working with Antoine and MartelTurnkey. As first time real-estate investor, Antoine gave me a great understanding of an industry I was unfamiliar with. Their properties are in great markets, fairly priced, and are truly turnkey. There were zero improvements I had to make on the property bought from them in Memphis. If you are looking for a good investment opportunity, work with the MartelTurnkey team.”

 

 

~ Simon, Long Beach, CA

 

 

 

 

As the nation’s economy rebounds after the devastating effects of the COVID-19 pandemic, the city of St. Louis has scored a major economic development victory with the Edwin Project.  A $60 million real estate development project, it is expected to not only bring luxury housing and various new businesses to the downtown area, but also be a driving force in creating hundreds or potentially thousands of new jobs.

 

The Partnership That Made it Happen

 

When projects such as these get finalized, it is usually due to the forming of extensive partnerships, and the Edwin Project is no exception.  For this project to become reality, it took a partnership between not only the Pier Property Group and Fireside Financial, but also the City of St. Louis, Saint Louis University, and St. Louis Midtown Redevelopment Corporation.  

 

Target as the Centerpiece

 

While the Edwin Project will feature 196 luxury apartments and many types of businesses, its centerpiece will be a 70,000 square-foot Target store.  The Minneapolis-based retailer, which plans to have its store open by July 2023, expects its store to attract thousands of people to the downtown area each day, which will of course help other nearby businesses such as restaurants, coffee shops, and other businesses.  Though the Edwin Project Target store is smaller than the average Target store that measures 130,000 square-feet, it will be a state-of-the-art example of the smaller-format store that Target has been moving toward in recent years.

 

A Midtown Jobs Bonanza

 

During its construction and of course once it’s completed, the Edwin Project will be a true Midtown jobs bonanza.  Along with Target and the other smaller businesses that will be hiring St. Louis residents, many other jobs will be created in such areas as construction, building management, janitorial and housekeeping, parking lot maintenance and many others.  As a result, thousands of St. Louis residents will have even more steady jobs that offer excellent wages and benefits.

 

A Transformational Project Months in the Making

 

According to David Heimburger, President of the SLMRC Board of Directors, the Edwin Project is one of those transformational projects that comes to a city once every few generations.  In fact, the SLMRC has been envisioning and working on this type of project for the past five years.  Working hard to attract a nationally-known retailer such as Target, Heimburger explained that doing so demonstrates that the city of St. Louis is not only a place where people want to live and raise their families, but also a city that is open for business.

 

Location and Parking

 

As to what ultimately made Target sign on as part of the Edwin Project, much of it had to do with two of the most important aspects of commercial real estate, those being location and parking.  Intrigued by the location for its store, Target and its executives were also pleased about the surface parking aspect of the project.  Since convenience in terms of parking is a critical factor in getting people to commercial districts and the businesses located there, this aspect of the Edwin Project was what many associated with the project believe turned the tide in their favor with Target.

 

20 Months to Completion

 

With construction in its early stages, the Edwin Project is expected to be completed within 20 months.  If all goes well, the Target store will have a shell by January 2023, six months before it expects to open.  The 400-acre redevelopment project, which will be located in Midtown’s Steelcote Square District, will feature Target located at Grand Boulevard, between Gratiot and Papin Streets.  

 

Inclusive Regional Growth

 

As cities today strive to emphasize diversity and inclusiveness, the Edwin Project is expected to do both for St. Louis.  According to St. Louis Development Corp. Executive Director Neal Richardson, the project will “advance inclusive growth in our region” and “create living-wage jobs that let people achieve upward economic mobility.”  In addition, the luxury apartments within the Edwin Project, expected to be some of the most sought-after in the city, will allow young professionals who want to live and work in the downtown area the chance to do so, while also offering luxury housing to retirees and others who enjoy the convenience of living downtown.

 

Opening the Door for Future Projects

 

As those who have been involved in the Edwin Project partnership look to the future, they strongly believe this project will lead to many others in the coming years.  Though similar projects may be smaller in scale, most agree that the Edwin Project is only the beginning for St. Louis and the Midtown area in terms of economic development.

 

Once the Edwin Project becomes a reality in 2023, the Midtown area and beyond will be bustling with new businesses and new residents eager to show everyone why the city of St. Louis is a great place to live, work and invest. Browse our turnkey rentals for sale to view available properties in St. Louis right now.

 

 

Customer Testimonial:

 

“I’ve had a very positive experience working with MartelTurnkey. With their help, I’ve bought two out of state properties and the process was smooth. Both homes are tenanted and performing well. It great to have experts who know a distant market well and who can locate good rental properties that cash flow.”

 

~ Jeremy,  Los Angeles, CA

 

 

 

Investing in turnkey rental properties is a smart idea no matter how you look at it. It’s especially great for people who have previously shied away from owning rental property because they don’t want to be a landlord. With turnkey rental properties, the hassles of being a landlord fall away. Through competent property management and a partner in turnkey rental properties, anyone can build passive wealth income through real estate. But it also takes a smart investor to really make good decisions about real estate investing. Following are the qualities that makes a smart investor.

 

Leaves Cash In Reserves

 

While a smart investor is willing to spend money to make money, that won’t mean draining the bank account. A smart investor always keeps sufficient reserves on hand for themselves. If there isn’t yet enough cash on hand to both invest and maintain a healthy financial “safety net,” a smart investor will wait until they can comfortably do so. At MartelTurnkey, we often cite that real estate investors should be ready to invest between $20,000 and $30,000 as a down payment on a turnkey rental property. But if that $20k or $30k represents your entire life’s savings, if it’s draining your kid’s college fund, or something similar, we would prefer that you wait until you are able to invest without wiping out the only thing standing between you and financial ruin!  Building a wealth portfolio involves risk, but not that level of risk.

 

Willing to Work to Relax

 

It sounds like a dichotomy, but smart investors know that sometimes work is a step toward relaxing. Smart investors know that a lifetime of passive income is worth some hard work to get there. This simply means that smart investors know that if they don’t yet have the cash to invest in turnkey rental property, they may have to work a bit to earn that cash. We covered a few ideas for earning extra money to invest in a previous blog post. They include things like working a second, part-time job. For most men and women, working yet another job is a huge time commitment that takes away from relaxation time, family time and more. But when the pay-off is having enough money to invest in reliable, passive income for a lifetime, smart investors realize that the hard work in the short-term is worth the relaxing lifestyle in the long-term.

 

Considers the Partner First, Then the Deal

 

Smart investors look for long-term partners whose goals and values are aligned with their own. They understand that it takes time to vet a real estate investment partner. It’s no small matter to entrust your money and future to a turnkey rental company. We covered the important things you should look for in a turnkey rental company in a previous blog post. Features include transparency, excellent client testimonials and more.  Smart investors first look for a sound investment partner before considering the actual deals that the partner offers.

 

Understands That One Isn’t Going to Do It

 

Smart investors know that investing in just one turnkey rental or one stock, or one little bond isn’t going to dramatically alter their future. They know that it takes long-term, consistent investing to build a wealth portfolio that provides enough passive income to live on. That’s why, at MartelTurnkey, we offer multiple investment properties to buy in several different markets. When you’re ready to buy your next turnkey rental property, you can be assured that you’ll find something available from our turnkey rentals for sale web page. Smart investors immediately prepare to buy their next turnkey rental property after buying their first, because they know that’s the path to true passive income wealth. 

 

MartelTurnkey would like to be your partner as you build your own wealth portfolio of passive income. We hope to make the journey with you into a lifetime of passive income that leaves you free to pursue everything else you want in life. We also want to educate you so that you can be the smart kind of investor who manages their own financial situation with intelligence. We hope you’ll find these tips useful as you choose your next turnkey rental property from us.  

 

Customer Testimonial:

 

“It was truly a pleasure partnering with MartelTurnkey on the purchase of two rental properties in Memphis. These were our first out of state rental properties for my partner and I. Although we’ve never visited Memphis, Antoine ensured we were connected in every stage of the process.”

 

~Sabrina & Lashawn, Plainfield, NJ

 

 

 

As you know, climate change has become a topic of importance for many companies, including automotive giant GM. Currently, they are demonstrating their commitment to transition output from gas-powered vehicles to electric-powered vehicles. They recently made an exciting announcement that its Factory ZERO in Detroit, Michigan will soon begin operations.  This is yet more proof that Detroit is shaping up to be the next great place to invest in real estate turnkey properties.  With Factory ZERO in full swing soon, thousands of new jobs will be available to Detroit residents, making this a city with abundant employment opportunities for your turnkey rental property tenants.

 

Thousands of New Jobs

 

With a grand opening planned for November, GM is expecting to employ as many as 2,200 workers at its Factory ZERO in Detroit, Michigan. This is significant, since the plant had only half as many workers as recently as 18 months ago when GM closed the plant so that it could be retooled to produce electric vehicles.

 

On Target with Its Promises

 

According to GM CEO Mary Barra, opening the Factory ZERO plant in Detroit proves that the company is on target to deliver on its promise to begin production of as many as 30 new electric vehicles by 2025. Though the automotive industry is currently dealing with a shortage of computer chips that have hindered production worldwide, Barra nevertheless expects 2022, and especially 2023, to be big years at Factory ZERO.

 

Electric Hummers

 

At Factory ZERO, the 2022 GMC Hummer EV Pickup will begin production this fall, making it the first of the 30 types of electric vehicles GM expects to begin producing in the coming years.  Actually, considering the Detroit plant was initially on the list with four other plants in North America that were scheduled to be permanently closed, it is considered a major breakthrough for GM and its workers that the plant has come back to life as what is expected to be a major EV plant in the United States.

 

Labor Negotiations Made it Happen

 

Along with a changing automotive market in the U.S. and around the world, many industry experts credit the 2019 labor negotiations between GM and the UAW as the catalyst that made Factory ZERO possible.  As the labor negotiations progressed during the 40-day strike by auto workers, a deal was reached that had GM commit more than $2.2 billion to reconfigure the plant for electric vehicle production.

 

Pre-Production Already Underway

 

While its official grand opening isn’t until November, the Detroit Factory ZERO plant is already getting a head start on things by building pre-production Hummer pickups. This is crucial, since GM already has pre-orders for more than 10,000 EV Hummer pickups, which will have a price of slightly more than $112,000.  As the plant gets up and running over the next few months, additional models of pickup trucks will become available to consumers at prices closer to $80,000.  

 

Calling Back Workers

 

With Factory ZERO getting its production facilities up and running, GM is now in the process of calling back hourly workers who were previously employed at the Detroit plant.  Along with this, the company expects to start hiring new workers early next year so that Factory ZERO can begin maximizing its production capabilities as soon as possible to satisfy customer demand for its electric vehicles.

 

More than Hummers

 

While the 2022 GMC Hummer EV Pickup will be the first vehicle produced at Factory ZERO, many other GM models will soon be produced there as well. In fact, Factory ZERO will also be responsible for producing the GMC Hummer EV SUV, Silverado E, and the Cruise Origin.  

 

Investments in Training

 

Along with spending well over $2 billion to retool Factory ZERO to produce electric vehicles, GM has also committed to spending millions more to give its workers state-of-the-art training in how to build electric vehicles.  Through its creation of the GM Automotive Manufacturing Electrical College, Factory ZERO workers will receive the very latest training in digital technology, software, and other aspects involved in producing these highly complex vehicles.

 

Largest Investment in Company History

 

To put into perspective just how committed GM is to its Factory ZERO plant in Detroit, consider that the $2.2 billion investment it has made in retooling the plant for EV production is the single largest investment GM has made in any of its plants during its history.  

 

Demonstrating its Commitment to the Environment

 

To further showcase how committed GM is to helping protect the planet and its resources, it used many innovative sustainability techniques during the plant’s retooling process.  For example, concrete waste from the plant was repurposed so that it could be used to help create temporary roadways.  Along with this, recycled stormwater was used to reduce discharge costs, with treated stormwater being used in the plant’s fire suppression system and cooling towers.  Finally, the plant features a nearly 17-acre wildlife habitat that allows foxes, turkeys, and monarch butterflies as well as many other animals to call the area home.

 

As anticipation grows for the Factory ZERO grand opening in November, Detroit residents are looking forward to getting back to work at an automotive plant that is poised to shape the future in so many positive ways. This is a great time to invest in Detroit with MartelTurnkey. Take a moment now to browse our available properties, download the financials and let us know when you’re ready to take the next step.

 

 

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