If you’ve already purchased a turnkey rental, congratulations! 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 buy your next turnkey rental. While it’s certainly a good thing to have a few hundred dollars in passive income coming into your household each month, you need to scale your portfolio in order to build real, generational wealth. Read on for more great reasons to consider buying another turnkey rental right now.

Interest Rates Are Steadying

Increases in interest rates have soured many prospective homebuyers in recent years, and inflation rates haven’t helped. However, just this month, signs are showing that both inflation and interest rates are coming back under control. Bankrate reports that, “The average rate on 30-year fixed mortgages retreated to 7.21 percent this week, down from 7.23 percent the previous week, according to Bankrate’s weekly national survey of large lenders.” Furthermore, “At the conclusion of its latest meeting on Dec. 13, the Federal Open Markets Committee decided to leave rates unchanged. Now, economists say, it appears that the central bank is done raising rates.”  For buyers who have been biding their time, patience has run out. Speculation indicates that investors are antsy to continue building their real estate portfolios, and they’re coming in fast and furious with this latest news. 

Decreased Opportunities

What this means for you is reduced inventory and decreased opportunities. The climate appears to be headed toward a seller’s market, which historically means less inventory on the market and that leads to higher prices. 

 Diversify Your Portfolio

Diversification is the key to reducing risk. When changes occur in the market your portfolio is better protected if you own multiple turnkey rentals; not just one. 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 other turnkey rentals to help cover your expenses on the temporarily vacant property. There is always an ebb and flow of revenue and the best way to stabilize your monthly revenue is through diversification.

Build Wealth Faster

Smart turnkey rental investors aren’t in it just to gain $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. When you own multiple turnkey rentals, that can become life changing very quickly. 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. You can now leverage that accumulated knowledge to scale your real estate portfolio faster than ever. 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 iseasier the second and subsequent time because you will build upon the information 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 eligible for 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’re seeing an uptick in investors once again. With the craze of the past 4 years, things are showing signs of stabilizing. Remember, all of our properties come to you renovated, with property management and tenants in place and cash flow positive. We will even help you get financing with our preferred lenders.  What more do you need?! Now is a good time to buy your next turnkey rental!