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Did you know that vacation home sales rose by 44 percent from 2019 to 2020? This rush to purchase second homes rose during the pandemic because of people's increased need for more space during quarantine.
However, this also opened up new possibilities for passive income with a turnkey rental. If you're also one of the people who are interested in investing in a second home, you may be wondering if it's worth the trouble.
Read on to learn all about if investing in turnkey real estate is a good idea for Orlando, Florida today!
What is a Turnkey Property?
Turnkey rental properties are operating at market standards. This means that when purchased, they need little to no improvement or repairs.
Value-add properties, on the other hand, are those that require some type of improvement in order to meet market standards. Unlike turnkey rental properties, they require far more hands-on experience and knowledge in order to bring out their potential.
Benefits of Turnkey Property Investment
Turnkey properties are desired by new investors and experienced ones alike because of how easy they are to start making money for you. Here are a few more benefits to keep in mind:
Passive Investment
If you desire the passive income that real estate can give you, a turnkey property is the quickest way to reach this goal. As soon as you purchase the property, it's ready to start making money because it requires little to no repairs or upgrades.
From the closing date, you can be as hands-on or hands-off as you desire. For day-to-day management, consider hiring an experienced property management company if you want to earn passive income.
Property management is also a good idea if you have little to no experience. You can learn from the professionals before trying it yourself.
Easy Long-Distance Investing
If you're interested in purchasing properties that are out-of-state, turnkey properties are your safest bet. This is because you don't need to be present in order to ensure that repairs and upgrades are going smoothly. You get what you pay for.
You may also find that property prices and ROI are far stronger in cities and states that are farther away from you.
Tax Deductions
Tax breaks are another major reason why turnkey properties are so alluring to investors. Your operating expenses such as repair, property maintenance, property management fees, and more can all be claimed as deductions that can reduce your income tax.
However, it's always recommended to hire an accountant to help you get the most out of your cash flow.
Keeping Pace With the Economy
Lastly, investing in turnkey properties is a safe bet even when it comes to inflation. This is because most of these properties will appreciate because of the market demand.
Invest in Turnkey Real Estate Today
Investing in turnkey real estate is far less risky than you may think if you're willing to do the research. Consider the areas where prices are low but renter demand is high in order to get the most ROI.
Once you purchase your property, you can also work with a property manager in order to truly enjoy a passive income.
Interested in working with an experienced property management time that can make your life easier? Contact us today to get started!