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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.

What is a Rent-Ready Property?

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:

  • Performing life safety repairs such as CO₂ and smoke detectors, GFCI installations, etc.
  • Functioning older capex items such as HVAC, hot water tanks and roofs are kept, but inspected and serviced
  • Flooring, vanities, countertops, light fixtures, faucets and other serviceable items are kept
  • These homes will include a warranty on items repaired from our inspections and the buyer’s inspection
  • We offer an optional $500 in-house warranty available 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 18-month minimum lease
  • Sold at a price point relative to the condition and market price vs. Turnkey which is sold at top market value because these homes are renovated to retail “HGTV” standards
  • Because these homes are priced under top of market value, the ability for forced appreciation exist by performing ascetical upgrades and replacing capex items down the road
  • How Do We Distinguish a Rent Ready Property?

    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:

  • Area (Neighborhood) would meet the same expectation we have with our Turnkey Properties. These are areas that best position our investors to succeed
  • Future potential that would make sense to perform ascetical upgrades that would add value to the home (forced appreciation
  • Cash flow numbers make sense
  • Once we determine our criteria is met, we will then proceed with the purchase and implement the processes of our Rent-Ready Properties.

    Why Consider Rent-Ready Properties In Your Portfolio?

    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:

  • Less cash out of pocket, thus more purchasing power
  • Lower price point and 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 a period of 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 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.