The young people of nowadays are appearing to be avoiding the financial responsibility of home ownership. And apparently this is due to how they have seen the housing market skyrocket and tumble while they were on college or starting their first professional job so they can buy a starter house.
Though the US economy has improved and financial arrested development has been meeting their end, people in their twenties and thirties have begun to invest in real estate, but not in the conventional way.
People have started to use turn-key properties, a way to own a home while adding other income stream to an investment portfolio.
Jay Dao is a 30-years old engineer from California, and is currently living in Santa Clara, he felt that he wasn’t able to enter in the Bay Area market, so he started to invest in an affordable region and now he is the owner of different properties in Indianapolis and Chicago.
According to Dao, “turnkey investing is a much more passive form of real estate investing for busy professionals or investors who simply don’t want to put in that much work themselves, but still would like to own rental property,” Dao who talks about his journeys in real estate investments on the site FIFighter.com.
Purchasing A Short-Term Housing Is A Long-Term Investment
Different from house-flipping which requires several repairs to turn a house into a livable one, by the other hand, a turn-key inversion is commonly ready to rent since the day it is bought.
Mario Bonifacio is a 34-years-old soldier who is living in Fort Hood, Texas, thanks to his turn-key investment.
“I figured out that the best way to take advantage of high rent and low real estate prices wasn’t just to own a home to live in; it was to own a building with enough units to rent out to others,” Bonifacio explains, who was planning initially to make money with his investment.
Right now, Bonifacio is the actual owner of different turn-key properties in Des Moines, Iowa, as also Foot Hood and Killeen, Texas, while living in New York City.
How To Purchase A Turn-Key Property
People interested in acquiring a turn-key property can go to a real estate agent or a specialized turn-key company. But, before doing any of this you need a deep research and a lot of free time.
Buyers located the property they would like to buy and then get in touch with a company that could provide them with a properties package that list all the available houses in an area. If you are interested you should visit the area and check out the properties as also the turn-key company.
When investors find the correct property to purchase, the person can purchase it right away or make negotiations with the company.
“With turnkeys, a standard condition to closing is to have the property leased up with a paying tenant in place before the buyer closing escrow,” Dao explains. “In other words, the property should be ready to generate cash flow for the owner as soon as day one.”
Establishing A Property Turn-Key On Your Own
Contacting a turn-key company is not the only way to make an investment in real estate, other ways to become an owner of a turn-key property.
According to Sandy Smith, 37, who lives in Queens, New York “I actually purchased each home on my own and then went about the process of making them as turnkey as possible,” she says.
Before Smith started to work as a manager of a company, she bought two properties.
“I am only ever involved if a repair will cost more than $500,” Smith explains.
Photo Credit: Por Farragutful (Trabajo propio) [CC BY-SA 3.0 (http://creativecommons.org/licenses/by-sa/3.0)], undefined