Turnkey properties are popular among new and seasoned investors, and for good reason – they provide a profitable and convenient way to build great wealth through real estate. When utilizing a full-service turnkey provider, every aspect of the deal is taken care of, from housing market research to placing a tenant, and everything in between. With that said, let’s begin by diving into the question at hand:
Are turnkey properties a good investment? Turnkey properties are a great investment option that enables individuals with no experience to easily purchase rental properties that generate passive income with immediate cash flow. Turnkey real estate also offers the advantage of investing in profitable out-of-state rental markets which opens up opportunities to diversify a portfolio and increase profits.
Why Turnkey Properties Are a Great Investment
There are many things you can invest your hard-earned money in, but not all will bring you the return you’re hoping for. However, those who are researching turnkey properties are certainly on the right path, and below, you’ll find out why as I cover the advantages of investing in this specific type of real estate:
1. No Real Estate Investment Experience Needed
Many people want to build great wealth or bulk up their retirement funds through real estate investing but don’t have the knowledge base to make it happen. This is when a professional real estate investment company comes into play. Turnkey investment companies are equipped with a team of professionals who are capable of handling every aspect of investing in a rental property.
They put their expertise into action to provide you with a turnkey property that is 100 percent complete and ready to cash flow. This removes the need for you, as the investor, to deal with market research, hiring contractors, placing tenants, vetting property managers, and the like – this can all be overwhelming if you have no experience with the process. If you landed on this page wondering, “Are turnkey properties a good investment?” you’re most likely starting to see the light as to what a great investment strategy this really is.
2. Turnkey Rental Real Estate Creates True Passive Income
Creating income passively is one of the wisest things you can do if you want to build wealth and retire comfortably. The opposite would be trading time for dollars. Your time is valuable, and if you can build wealth without putting in long hours – why not? When you create a situation where you have more time available because someone else is doing all the leg work for you, that frees up time to allocate towards creating more income or just enjoying life.
When you invest in turnkey properties, you’ll be able to create wealth through true passive income. This is possible when an experienced full-service turnkey provider makes a property purchase happen for you by taking care of all the steps – big and small. This sets the buyer up with a hands-off investment for years to come, with rent checks rolling in like clockwork each month.
The most important element in all this is that you ensure you’re using a true full-service real estate company. Many turnkey providers hand you the key to your new rental and then wave goodbye. At this point, you’re on your own when it comes to figuring out how to find a tenant, as well as a property manager.
There are two types of turnkey providers – the one I just mentioned that only provides the property, and then there are full-service providers that do absolutely everything, so you’ll be cash flowing from the start. I recommend diving into our interview article with the CEO of SDIRA, the company we are partnered with. It goes into detail on what should be provided to an investor: More Than Just Turnkey — Experience Full-Service Build-to-Rent Real Estate with SDIRA Wealth.
Here are just a few examples of what our full-service company takes care of:
- Tenants are typically in place before or at closing, so you can start receiving monthly rent checks immediately.
- A professional property manager will be assigned to take care of your tenant and property needs, so you don’t have to.
- Market research will be done for you to allow the property to be set up in the most lucrative location.
- Consult with you regarding various funding strategies, including non-recourse financing, borrowing from your 401(k), and more.
- We offer new construction single-family and multi-family properties that are typically priced lower than the market value. We’re able to do this because we buy our construction supplies in bulk and pass the discount down to our clients. Plus, the returns are generally 18%+ IRR for these built-to-rent properties.
- Can get you set up with a self-direct IRA in less than 15 minutes. Using an SDIRA is a smart funding strategy and you can learn more about it in this article which discusses SDIRAs in detail: How To Use a Self-Directed IRA To Invest in Real Estate in 2025.
- Help with incorporating so you can lower your tax burden to keep more money in your pocket, as well as protect against liabilities. To get ahead of the game, we recommend reading Tax-Free Wealth, a book by our accountant Tom Wheelwright. He’s also the personal tax advisor to real estate giant, Robert Kiyosaki.
- We’ll help you get set up with the proper real estate insurance and recommend NREIG because they deal with turnkey properties. You can research the NREIG website to see how they can protect your property.
- For those who meet certain criteria, our new construction properties automatically come with a full cost segregation study. This can lower your tax burden considerably. If you’re new to the topic, we created a detailed article on the subject: The Power of a New Construction Cost Segregation Study Can Save You Thousands.
- We’re committed to offering our clients free ongoing education and support for the life of the property.
3. Turnkey Properties Generate Immediate Cash Flow
For those who are asking – Are turnkey properties a good investment? When we say that they are, this is one of the main reasons: They generate immediate cash flow. A lot of investments can take years to build up a good amount of cash flow. As a quick example, imagine buying a rental property and then having it sit vacant for months as you take care of all elements to make it rent-ready, as well as finding a reliable tenant. This would lead to thousands of dollars in lost income, and money out of your own pocket as you pay the mortgage yourself over those months. In contrast, turnkey properties will allow you to have a check in your hand the very first month because all the work is done by the turnkey company to make that happen for you. Additionally, the cash flow will be steady, month after month, year after year. You’ll be set up for life, building wealth with a wise investment strategy.
4. Allows for Investing in the Best Rental Markets
Another key advantage to investing in turnkey properties is that you can invest remotely. This allows you to own a rental property in any state that has an incredible rental market. When it comes to the success of your rental property, location is essential. A few aspects of a rental market that you should take into consideration are the area’s job growth, if there is a demand for tenants, and whether or not it’s a landlord-friendly state.
It seems like it could be a challenge to rent out a property if you’re not even living in the same state, but it’s actually simple. How is this possible? Because a turnkey provider will do the market research to locate the most lucrative market and take care of everything to allow you to invest in that area. Additionally, because you’ll have a property manager who resides in the city where your rental sits, you won’t need to be present. Everything is in the hands of the professionals who have the goal of taking care of your property and its tenants, making the process as efficient as possible – that’s the beauty of investing in turnkey real estate.
Here are a few helpful articles on the topic:
- Why Location Matters in Real Estate Investing – Tapping into Profitable Rental Markets
- What You Need to Know About Landlord-Friendly States
How Can I Invest in a Turnkey Property?
If you feel that turnkey properties are a good investment and want to move forward with adding one to your portfolio, all you have to do is contact Morris Invest. We have a full team of turnkey professionals who are experts in the field. Our team successfully sets investors up with new construction rental properties in locations with a high demand for rentals and a thriving economy. Schedule a complimentary call with Morris Invest if you would like to discuss the topic in more detail. In the meantime, check out our power resources for real estate investors that can help you grow your wealth and secure your future:
- Freedom Number Cheat Sheet
- 90-Day Financial Empowerment Bootcamp
- The Financial Freedom Academy
- Morris Invest & SDIRA Program Overview
Before you go, take a moment to view our video that goes into detail on the benefits of working with a full-service real estate company:
