Over the years, we have listened to some of our clients’ expressed interest in an alternative to our full Turnkey product. These investors are interested in trading some risk protection for a lower price point and the ability to add value through forced appreciation by performing ascetical upgrades and capex expenses down the road. To meet this consumer need, Turnkey Properties is now offering Rent-Ready Properties.
Rent Ready Properties are acquired by our team, but a full-scale renovation is not performed; rather, we order a third-party home inspection and make immediate repairs from the inspection report, along with repairs of immediate maintenance items from the buyer’s inspection report. Other features of the Rent Ready product line include:
In today’s real estate market, the supply of homes we can purchase, perform a complete Turnkey retail quality “HGTV” renovation and sell at a price point that makes sense to our investors is competitive. That does not mean there are not buying opportunities of homes in good condition in which a moderate “Rent Ready” renovation can be performed. We will identify this type of home and perform our standard pre-purchase evaluation we do on all homes. This evaluation would include the following criteria:
Once we determine our criteria is met, we will then proceed with the purchase and implement the processes of our Rent-Ready Properties.
If you are looking for the most passive, risk averse real estate experience, our Turnkey Properties is most certainly the route to take. The Rent-Ready Property simply gives our investors more options and strategy when building their Real Estate portfolio. These strategies/options include:
Forced appreciation has been used repeatedly throughout this announcement and is key factor in the Rent-Ready Properties purchase strategy. Forced appreciation can occur anytime by adding amenities to a property and replacing capex items such as HVAC systems, roofs, updated electrical panels, granite counter tops and hot water tanks. Not only will these upgrades bring your property to the maximum property value, they will also give you the ability to increase your rents to a premium, thus adding to your NOI. In a strong real estate market, when you are forcing appreciation, you are also getting natural appreciation too. Because you bought this property at a discount to maximum value, the Rent-Ready Properties allows for you to force appreciation to your property at a time that makes sense for you.
