Why Invest in Turnkey Real Estate?
As an investor, you have the choice of a variety of investments, including real estate. Residential real estate offers advantages unavailable with most other investments, including:
Cash Flow – Real Estate is one of the only investments that begins to produce cash flow on day one. Rents hardly ever decrease over time so you will maintain your ability to increase your monthly rents & cash flow over time.
Leverage – You can actually leverage your purchasing power, taking on less risk, while collecting monthly rents and experiencing appreciation (higher property values) on someone else’s dime. Your borrowed money is going to work by allowing the tenants to cover all of the expenses associated with the property, providing you with both monthly cash flow and the annual appreciation increase as well!
Principal Buy Down – The tenant is paying the mortgage monthly which allows the principle amount of the loan to be reduced every year while the tenant(s) are paying for you to own the property out right.
Tax Benefits – Any reduction (repairs, depreciation of asset) can be helpful when seeking tax deductions. Talk to your CPA as this, for some, can be reason enough to purchase a turn-key property.
Inflation – Real Estate happens to be one of the best ways to keep ahead of the inflation curve. As inflation takes place two really cool things also takes place; your rents go up and the value of your property goes up as well.
Appreciation – The market is rebounding to pre-market crash values, which means that you get to ride the appreciation wave while experiencing a positive monthly cash flow if purchased correctly. We are not big proponents of purchasing property “solely” based on appreciation but it is a benefit to buying and holding property over an extended period of time.
IRA & 401K – You can purchase these properties with your IRA; provided you set it up correctly. This allows you the flexibility to invest your dollars where, when and how you choose and the investment is “secured” by real estate. Try using the word “secured” when investing in the stock market.
Rental property has historically increased in value, with values doubling every ten years in many markets. Coupling steadily increasing property values with the cash flow generated from steadily increasing rents provides the investor with an excellent opportunity to reap meaningful returns with less risk than other commonly available investments.