3 Ways to Choose Turnkey Properties in Dallas
Investing in turnkey properties in Dallas can be very lucrative and it can be one of the best ways to increase your passive income as you diversify and stabilize your investment portfolio. With a turnkey property, you’ll have — at the very least — a property that’s ready for tenants to move in and comes complete with property management. A lot of turnkey rentals also come with tenant acquisition and other services, as well. So how can you get into turnkey investments in Dallas?
Purchase a Turnkey Property from a Developer or Turnkey Provider
The most direct route is to purchase a property outright from a developer or other turnkey provider. Basically, when you do this, you want to take a good look at the numbers. You already know that you’re going to spend more for a turnkey property than you would for a bare property that needs renovations, doesn’t come with property management, etc. In general, you shouldn’t worry about your seller’s markup on the property. Instead of looking at what they’re putting in their pockets, look at what you can put in yours.
When you run the numbers on the property, look at all of the costs you’ll have to absorb, the average amount of time it takes to get a tenant (if your property doesn’t already have tenants), and any other costs involved with maintaining the property with or without tenants. Be liberal with your costs and conservative with your income from the property, and you’ll have a good idea of whether or not you’re looking at a good deal. Once you find a great deal for your portfolio, buy it and enjoy the passive income.
Joining a Real Estate Investment Club
Of course, owning a single-family property isn’t the only way to make money on turnkey real estate in Dallas. You can also buy equity in a property and enjoy quarterly dividend payments. One of the best ways to do this is to join a real estate investment club and get to know the opportunities available to its members. You may find that there’s an exciting new development right around the corner that you can buy into and enjoy a completely hands-free rental property investment.
Crowdfunded Real Estate
Instead of joining a real estate investment club, you could also choose to invest through a real estate crowdfunding platform. If you’re an accredited investor, you’ll be able to split your investment capital over numerous projects or back just one, depending on your goals and how much faith you have in the developer.
With either a real estate investment club or crowdfunded real estate, remember that you’ll have almost undoubtedly have a waiting period between when you invest and when you start to see returns. It pays to do your research on these properties and their developers to find out how quickly they’ll be completed and what kind of track record the developers have for gaining tenants and getting their properties up and running.
There you have it — three ways to invest in turnkey properties in Dallas. Choose the one that fits your investment style best or diversify your turnkey investments and put some of your capital into each.
