![]() Here, however, is where turnkey price point has an impact on your investment strategy: the higher initial investment will take longer for you to see an increase in market value. ![]() If the appraisal comes back with the property priced over market value, you can either negotiate or walk away. The truth of the matter is some turnkey companies do overprice their properties, yet you can and should do your own due diligence by getting an independent appraisal. Turnkey companies have a reputation for overpricing their properties sometimes by 30% or more. ![]() Let’s see how this difference plays out for investors in terms of price point, location, and property management. Unlike traditional turnkey companies, Roofstock does not own or operate their rentals. Recognizing the investment opportunities as well as the setbacks that turnkeys offer, Roofstock created an innovative platform to connect investors to cash flowing properties and local property management services. While the workload is significantly less, sometimes turnkey investments offer lower returns in poor markets. Essentially, investors “turn the key” on these properties in terms of ownership. The goal of turnkey rental companies is to offer investors immediate cash flow and take the workload out of vetting, updating, and managing properties. Traditionally, a turnkey rental company is a company that purchases distressed properties, rehabs them, and sells them with property management in place. Now, a new way to invest and operate rental properties has emerged in Roofstock, an online platform that allows you to invest in single-family rentals (SFRs) with more transparency and flexibility. There has long been a debate in the real estate investing industry about the benefits and drawbacks of turnkey properties, with people on either side of the argument very passionate about their stance.
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