Is it worth investing in a property that requires some work or is it better to consider a turnkey rental? It’s a question asked by many investors yet the answer isn’t always so clear. What are the advantages or disadvantages? Let’s explore.
If you have any experience with property renovation, you know the process can prove laborious and potentially stressful. Contractors are not always easy to work with and there is a constant need to ensure the budget is being followed. You also have to go through obtaining permits and there may be an inspector to deal with as well.
In regards to turnkey properties, not all of them have an existing tent that’s been pre-screened, but many of them do. Placing tenants is a process that takes time. The property needs to be prepared for presentation, it needs to be advertised, and then there is the step of screening tenants. Hence, paying for a property with a tenant may save time and money despite the premium.
With a property that needs some work, there are better odds of building equity versus a turnkey which, more than likely, has already received improvements. This means you may be essentially paying for another investor’s profit margin.
This update is by Monroe Funding Corporation, a direct equity lender serving clients throughout Central and South Florida. We specialize in first mortgages on non-owner occupied residential and commercial property investments as well as real estate loan options. Our fast and flexible loan programs get you to the closing table quickly and professionally. For more information on hard money loans Miami, please call 954-816-0388 or fill out our application.