Rentals are no stranger to the real estate investor, but with these investments it is critical to be able to adapt to the market at hand. In particular, we are going to analyze how to find and create turnkey rentals in positive cash-flow markets.
Right next door, we have a real estate arena that has exhibited high cash flow for years: Memphis, Tennessee. Many focus on the risks of these types of markets, for they can indicate high expenses and high turnover. As an investor, efficiency is key in this kind of environment. Some investors do this by purchasing many homes in the area and outfitting them with all the same fixtures to avoid discrepancies, and others purchase their materials directly from the suppliers to save money that can be reinvested into further home improvement.
In these markets, it is important to maintain the quality of the rentals you’re bringing to the market. Without compromising, you must rise to meet the investor demand in your area in order to maximize your profits. Ultimately, the resident is happy if their improvements were done well, and the property manager is happy the property isn’t breaking down,
Many of these bases are covered with turnkey operations. First and foremost, they ensure you will have a home with quality renovations every time. It is more than likely that the homes will have been held to an identical standard to past rehabs, so you know exactly what you’re getting.
Secondly, working with a flipper company in a turnkey operation gives you a way to be able to directly hold someone accountable for your property. Some companies even offer lifetime guarantees where if your property remains vacant for 90 days, the company will begin to pay you rent.
With turnkeys, potential investors can rest assured that they know exactly what they are getting. The company providing the rental will likely go in-depth to explain their business model to you and show you what the house rehab looks like at all stages of its renovation, so you can be confident in your investment. Ultimately, no matter your investment style, the positive cash-flow you’ve been looking for could be in turnkeys.