A turnkey property is a home or apartment building that is ready to move-in (whether fully renovated, partially renovated, or just few cosmetics). An investor can purchase turnkey properties, immediately rent them out and start earning passive income. This article will discuss the benefits of turnkey real estate investing.
The best part about turnkey investment is that over the period of time, the property’s value increases due to market demand and inflation. This is a great approach if you are looking forward to securing your long-term future.
The Mortgage Is Paid by the Tenant
If you are using financing to purchase your property, your mortgage is then paid off by the tenants via the monthly rental payments. If you have the right property, then this relationship will expand, and you will eventually have a mortgage-free asset. If you purchase the property in cash, you start making money right away and take all rental income to your pocket.
Cash flow is basically the difference between the rental income and the property expenses. After you have paid off your mortgage, you will be left with a property that will continue to provide you (passive) income.
One of the biggest advantages is that this type of real estate offers tax breaks to investors. If you refinance the property with a new mortgage, and then reinvest the profit in a new mortgage, then you can cash out profits without the taxes. Other than this, you do not have to pay taxes until you sell the property.
Did you know that real estate appreciation profits are counted as capital gains? This works in your favor as only half of your profit is taxed.
More Advantages of Buying a Turnkey Property
There are several advantages of buying a turnkey property. One of them buying a fully (or mostly) renovated property, whereall the work is already done, which means, fewer maintenance hassles move-in ready for tenants straight away. In addition, turnkey property is a great source of passive income for any investor for the long term.
Learning About the Turnkey Real Estate Investment
As an investor, you have the opportunity to invest with Lakeview Capital, located in Pittsburgh, PA. Lakeview Capital is a local real estate solution company that expertise in the Pittsburgh market. According to CNNMoney.com, Pittsburgh is a great recovery bet when it comes to America’s Housing Markets and is one of the Best Markets to Become a Landlord. Moreover, the Bloomberg Business Week ranked Pittsburgh as one of ‘Most Improved US Housing Market’.
Lakeview Capital purchases properties directly from the sellers. Next, using their own contractors, renovations begin and properties are marketed for tenants to rent. Lakeview Capital manages the properties for the investor and deposit rental checks into their bank accounts. Lakeview Capital has excellent reputation among colleagues and investors, both national and overseas. Contact Lakeview Capital today to learn more about their turnkey business model.