It’s Time to Buy Another Turnkey Rental: Here’s Why
If you’ve already purchased a turnkey rental, good for you. It was a smart move that you’re probably very glad you made. Now that you have that under your belt, it’s time to consider buying your next turnkey rental. While it’s awesome to have between $200 and $300 in passive income coming in each month, you need to grow your portfolio in order to build real wealth. Following are more great reasons to consider buying another turnkey rental.
Interest Rates Remain Low
Interest rates are historically low right now; they have been for many months. But they won’t stay this low forever. Rises in interest rates are inevitable, and while they won’t change drastically overnight, they’re most certainly going to rise at some point. The sooner you invest again when rates are low, the more favorable your position will be, the less interest you’ll pay, and the sooner you’ll be able to pay off the loan.
Diversify Your Portfolio
Diversification is the key to reducing risk. When you bought your first turnkey rental, was it a single-family home? This time around, consider a duplex, triplex or four-plex. You’ll still be investing in trusted residential rentals, but your portfolio will be diversified somewhat. When changes occur in the market—as they always will—your portfolio will be more protected than if you only owned one turnkey rental. Owning multiple turnkey rentals also protects you in the event of vacancies. If one property goes vacant for a month, you’ll still have the positive cash flow from the second turnkey rental to help cover your mortgage payment on the vacant house.
Build Wealth Faster
Smart turnkey rental investors aren’t in it just to gain around $200 or $300 in passive income each month. That’s certainly a nice benefit, but it’s not going to substantially alter anyone’s lifestyle. But when you get into owning multiple turnkey rentals, that can be become life changing very quickly. Because after you buy your second and maybe third turnkey rental, you might want to invest in an apartment building or get into commercial investing. Look at it this way: Your first turnkey rental purchase was just the beginning of what could be a long and successful investment legacy.
Leverage What You’ve Learned
When you first contemplated buying a turnkey rental, you probably had a lot of questions. You didn’t know everything you needed, so you asked questions, conducted research and did your due diligence. Now you have all that knowledge that you can put to good use. It won’t take you as long to decide what turnkey rental company to work with, which property to choose or where you’ll get your funding. Everything will be easier the second and subsequent time because you can leverage the information that you gained the first time around. That’s a powerful situation to be in, and one you should take advantage of.
Gain More Tax Deductions
When you bought your first turnkey rental you became a landlord and became eligible for tons of extra tax deductions. If you haven’t yet filed your first tax return since becoming an investment property owner, you’ll soon learn that you can offset those deductions against your regular income. That’s a tremendous benefit to have. But when you have multiple turnkey rentals, you get to deduct even more investment-related expenses against the same ordinary income. That has the potential to be a huge tax savings. Consult with your CPA for details about exactly which expenses are deductible.
Finally, at MartelTurnkey, we’ve been experiencing unprecedented demand for our turnkey rentals. Sometimes they’re purchased before we even have a chance to publish official images on our site. If nothing else, that should tell you that fellow real estate investors are seeing the tremendous value and profit potential in investing in turnkey rentals. We’re doing our best to keep up with demand and bring you the best investment properties we can find. Remember, all of our properties come to you fully renovated, with property management and tenants in place and cash flow positive. Isn’t it time you bought your next turnkey rental?