Are you thinking about buying a turnkey property in St. Louis? Make sure you read this blog post to find out what you need to know before buying a turnkey property in St. Louis or the surrounding area. This information could help you find the right investment and avoid the wrong one!
There are many different kinds of investments but we believe that one of the best kinds of investments for most real estate investors is a turnkey property. That’s because turnkey properties are already cleaned up, rented, managed, and cash-flowing , which means you start generating returns earlier than you would with a flip or a distressed property that you need to do all the work on before you start seeing any income.
To help you find the perfect turnkey investment, here’s what you need to know before buying a turnkey property in St. Louis.
#1. Cash Flow
You’ll want to know how much it cash flows. Cash flow is one of many benefits to owning real estate and Cash flow can vary property to property, but ANY cash flow can be good. (Even Robert Kiyosaki’s very first property was only cash flow positive $25 a month!) The key is not necessarily a specific cash flow amount but more about the consistency of the income. If you want cash flowing properties, be sure to talk to us here at U BUY STL. Get in touch by calling us at 3147017186 and we’ll share our current inventory of cash flowing turnkey properties.
#2. Expenses and Fees
As with any investment, there will be expenses and fees. It’s good to know what yours will be. There’s nothing wrong with fees; it’s just good to know what they are. Please make sure you are setting aside funds for repair and maintenance expenses, vacancies, and tenant turnovers to ensure the home is ready for your next tenant.
#3. Insurance
All real estate should have insurance, especially if you’re dealing with tenants. No matter who you buy your properties from (us or anyone else), make sure you ask them about what insurance comes with the property and whether anything else is needed. You will likely have to provide confirmation of insurance to the title company as standard practice before purchasing a real estate investment to ensure you are in good hands from day one.
#4. Management Team Responsibilities
One of the best parts of turnkey investing is getting a cash flowing real estate investment that you don’t have to manage yourself! U BUY STL has a sister company and property management team that seamlessly handles all things property management to take care of as many things as possible to help make this hands-off investment. We do always recommend you do your own due diligence on property management companies and what they will and won’t do. They are not all created equal. You may want to ensure that you as the owner and your tenant will both have access to an online portal for quick and convenient payment options, reporting, and communication.
We recommend you review the property management agreement so you have a full understanding of their processes from everything from standard repair and maintenance to make readies, leasing, and owner payments. Do they have a large enough team to handle leasing, property management, collections, tenant turnovers, and routine repair and maintenance? Look over the property management agreement and do your homework so you know what to expect.