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Get Your Investment Strategy In Gear Before The Year Is Over

Happy October, and welcome to Q4 2022! You’re probably formulating your holiday plans right now … and it wouldn’t hurt to start formulating a Q4 capital allocation plan along with it.

 

Q4 is a busy time at MartelTurnkey. Our long-time investors usually pull up their shopping carts, looking for deals. Of course, this means our inventory will probably get far more slim over the next month or two, so if you’re thinking about investing, we should probably move forward the conversation ASAP. 

 

Why is Q4 a great time to invest? The answer, as it so often is in real estate investing, is tax advantages. Buying a turnkey rental in the back quarter of 2022 can make the tax return you file in April 2023 much happier. (Or at least, happier for you. Maybe not so happy for the IRS.)

 

You get two major tax advantages for investing in Q4 …

Deductible Expenses

As we have discussed in previous articles, real estate investment is a business. If you own rental real estate — even a single turnkey rental house or condo — you are a business owner, and as such you are eligible to deduct a slew of expenses that homeowners just don’t get to. 

 

Homeowners get to deduct their mortgage interest … but they don’t get to deduct their insurance premiums, repair expenses, utilities, etc. 

 

This is true of every real estate investment, but Q4 amplifies that effect. The most expense-intensive times in the life of a real estate investment are at purchase and at sale. In the case of purchase, you have closing costs, loan fees, and startup costs. 

 

That’s a lot of deductible expenses that you can tack on to your 2022 tax return at the eleventh hour. There are ways to maximize that deduction even more — for example, pre-paying your insurance premiums for a full year.

Year-1 Depreciation

Again, we’ve talked about this before, but it bears repeating — depreciation is a real estate investor’s best friend. 

 

What is it? It’s a deduction you’re allowed to write off your taxes for “wear and tear” of the property, based on the assumption that the property gets less valuable with age and use.

 

Of course, real estate tends to appreciate in value over time … but you still get to take the deduction. It’s a writeoff that you don’t have to actually spend money to claim! 

 

Homeowners don’t get to do this — only real estate investors. You have to “recapture” that depreciation if you sell the property for a profit … but your recapture of that depreciation may be capped. 

 

You can start depreciating your property as soon as you acquire it. Your first-year depreciation will be prorated based on the percentage of the year you owned the property. 

 

For investors who want more deductible expenses in 2022, investing in real estate in Q4 is a no-brainer.

 

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If you want these tax advantages for 2022, time is running out. Our inventory is limited, and we expect significant demand per usual in Q4. If you want one of these renovated, tenant-in-place, cash-flow-generating turnkey rentals to be yours, reach out to us today!

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

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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How to Safely Buy a Turnkey Rental Sight Unseen

Buy turnkey house sight with confidence

You can buy almost anything online these days, including real estate. People do it every day, all over the world. Still, if buying a turnkey rental property is new to you, you may wonder how safe it is to buy this kind of real estate sight unseen.

 

On the surface, it might sound scary. But there are ways to protect yourself—and your money—when buying investment property without seeing it first. Lots of people are making passive income with turnkey rentals even though they never clapped eyes on the property in person. You can, too!

Benefits of Buying a Turnkey Rental Out of State

 

The idea of buying a rental property without viewing it first implies that it’s located out of state, or far enough away that it’s not a simple matter to get to from where you live. But the real key is that buying turnkey rentals out of state allows you to get in on a real estate market that’s better than the one where you reside. 

 

So even if you live in a beautiful area where the property values are sky high—and out of your reach—you can still have a profitable real estate venture. 

 

You Can Trust MartelTurnkey Because We Did it Ourselves

 

For example, at MartelTurnkey, our family attempted to delve into the real estate business in the San Francisco Bay area, where we lived. Looking back it’s rather shocking to recount how “putting in an offer” worked. 

 

Hearing of a home for sale, herds of people appeared at the Open House. Even without a sign indicating the open house, there were a few key indicators you were within close proximity to the house:  One was the lack of parking, or rather, cars (and flatbed trucks) parked triple deep on a narrow street; and the other indicator was by the crowd of people gathered on a driveway, or porch, or snooping around the yard, impatiently waiting to get access to the forlorn house. (Admittance was often restricted and regulated to a few people at a time.) Frequently we found ourselves offering way too much for fixer-uppers, which required extreme repair, and then waiting a few days to see if we were the lucky ones whose offer was accepted. Most times, it was not. 

 

We persevered, and eventually experimented buying out of state properties in areas that were affordable and you didn’t have to fight as hard to successfully buy. With a remarkable amount of actuarial research, analysis and grit, we focused on a few cities where we still work today. These markets were not HOT at the time, but ripe for the picking. Markets like Memphis, and Cleveland to start with, and eventually we expanded.

 

The rest is history. For eight years, we have been busy building a multimillion dollar company, helping rookies and experienced investors alike, to reach their goals in real estate, through ownership of turnkey rental properties. Our reputation and genuine concern for our clients has resulted in great things for many people.

 

So when you want to know how to safely buy turnkey rental property without seeing it, your first step is—you probably already guessed it—

Buy from an experienced, reputable and highly-respected company. MartelTurnkey.

 

What Else Do I Get With a MartelTurnkey Property?

 

There are other reasons to buy your turnkey rental from MartelTurnkey when you’re buying an investment property sight unseen. 

 

– We Help Find Financing Options

 

Buying investment property sometimes poses a challenge for borrowers. And if you’re not someone with W-2 income, well, that’s another challenge. We have established lenders that we will introduce you to. Lenders who are experienced in investment properties and lend in the states where we do business.

 

– We Put Tenants in Place

 

A turnkey rental isn’t going to generate passive income without a paying tenant. All the rentals we sell have paying tenants in place with a lease, and that all goes to you when you buy a turnkey rental from us.

 

– We Put Property Management in Place

 

The same thing goes with passive income. It’s not passive if you’re the one collecting the rent and fielding tenant calls. All of our properties come with a property management company already doing the heavy lifting. They’re yours to continue a relationship with if you want.

 

We hope this makes you feel more confident about safely buying a turnkey sight unseen. 

 

What other questions can we answer for you? Use our online contact form to schedule a call or go ahead and browse our available turnkey rentals right now. We look forward to doing business with you!