Memphis & Little Rock Rent-Ready Properties
If you’re willing to trade some risk protection for a lower price point, you can expand your portfolio and build value with Rent-Ready Properties.
What Is a Rent-Ready Property?
Rent-Ready Properties are homes that are move-in ready for your tenants. We professionally clean these homes to give you an attractive property for qualified tenants.
Our team acquires a Rent-Ready Property in Memphis or Little Rock, but we don’t perform a full-scale renovation.
Instead, we order a third-party home inspection and make immediate repairs from the inspection report and repairs of immediate maintenance items from the buyer’s inspection report.
Rent-Ready Property Features
Other features of the Rent Ready Property product line include:
- Performing life safety repairs such as CO₂, smoke detectors, GFCI installations, etc.
- Inspect and service older but functioning CapEx items like HVAC systems, hot water tanks, and roofs.
- Keep flooring, vanities, countertops, light fixtures, faucets, and other serviceable items.
- Provide a warranty on items repaired from our inspections and the buyer’s inspection.
- Optional $500 in-house warranty for HVAC and hot water tanks.
- Our in-house property management will vet inherited tenants, retaining those in good financial standing.
- Existing leases will be honored—upon the next vacancy, we will place tenants into our standard 2-year minimum lease.
- Sold at a price point relative to the condition and market price vs. Turnkey, sold at top market value because we renovate these homes to retail at the standard you’d see on HGTV.
- Because these homes are priced under the top of market value, the ability for forced appreciation exists by performing aesthetic upgrades and replacing CapEx items later.
How Do We Distinguish a Rent-Ready Property?
In today’s real estate market, we compete for the supply of homes we can purchase, perform a complete turnkey retail-quality HGTV-style renovation, and can sell at a price point that makes sense to our investors.
However, that doesn’t mean there aren’t opportunities to buy good-quality homes where we can perform a moderate Rent-Ready Property renovation
We first identify a Rent-Ready Property home, then perform the standard pre-purchase evaluation we do on all homes.
We evaluate on these criteria:
- Area (Neighborhood) would meet the same expectations with our Turnkey Properties to position you for success.
- The future potential would make sense to perform aesthetic upgrades that would add value to the home(forced appreciation).
- Cash flow numbers that make sense.
Once we determine that a property meets our criteria, we will move forward with the purchase and implement our Rent-Ready processes.
Why Consider Rent-Ready Properties for Your Portfolio?
Rent-Ready Properties from Turnkey Properties give you more options and strategies when building your real estate portfolio, like:
- Less cash out of pocket, thus more purchasing power
- Lower price point & more options for cash, IRA, and 1031 exchange purchases
- The ability for forced appreciation
- Purchase the property with cash and hold in that cash position for some time, refinance and re-coup a large portion of that cash position
What Is Forced Appreciation?
Forced appreciation has been used repeatedly throughout this announcement and is a key factor in the Rent-Ready Properties purchase strategy. Forced appreciation can occur anytime by adding amenities to the property and replacing CapEx items such as HVAC systems, roofs, updated electrical panels, granite counter tops and hot water tanks.
These upgrades will bring your property to the maximum property value and allow you to increase your rents to a premium, thus adding to your NOI. In a robust real estate market, you also get natural appreciation when you force appreciation.
Because you bought this property at a discount to the maximum value, the Rent-Ready Properties allows for you to force appreciation to your property at a time that makes sense for you.