Contemplating the purchase of a turnkey property in Fort Myers? Before making a decision, be sure to peruse this blog post for crucial insights. This valuable information can equip you with the knowledge necessary to identify the right investment opportunity and steer clear of potential pitfalls in Fort Myers and its surrounding areas.
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 right from day one, 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 Fort Myers.
#1. Cash flow
Understanding cash flow is crucial when evaluating investment opportunities in real estate. Cash flow, simply put, is the money left over after all expenses have been paid. While the amount can vary widely depending on factors like location, property type, and market conditions, any positive cash flow is generally considered a good sign. Even modest amounts, such as Robert Kiyosaki’s initial $25 per month from his first property, can signify a sound investment. The key lies not just in the dollar figure but in the consistency of generating income from the property over time.
Consistent cash flow is what sustains real estate investments and ensures they remain profitable. It covers expenses, builds equity, and provides a steady stream of income for investors. At Core Real Estate Solutions, we specialize in identifying properties that offer reliable cash flow opportunities. Whether you’re looking for residential homes, multi-family units, or commercial spaces, our team is dedicated to helping you find properties that align with your financial goals. By partnering with us, you gain access to a curated inventory of turnkey properties that are primed to generate positive cash flow from day one.
If you’re interested in exploring cash flowing properties further, we encourage you to reach out to us at (239)360-3176. Our knowledgeable team is ready to discuss your investment objectives and guide you through the process of acquiring properties that not only meet but exceed your expectations for cash flow. Take the next step towards building a robust real estate portfolio with properties that consistently deliver returns.
#2. Expenses and fees
As with any investment, there will be expenses and fees. It’s good to know what yours will be. Are there HOA feels? If you’re holding them inside an LLC, will there be corporate fees? If you’re buying the property inside an IRA, will there be fees to the Self Directed IRA custodian? There’s nothing wrong with fees; it’s just good to know what they are.
#3. Insurance
Insurance is imperative for all real estate, especially when dealing with tenants. Whether you’re acquiring properties from us or another source, it’s crucial to inquire about the existing insurance coverage and ascertain if additional coverage is necessary. Prioritize understanding the insurance aspects to safeguard your investment effectively.
#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! The management team will take care of many things to help make this hands-off investment. That said, you should be aware ahead of time of what they will and won’t do. Will they proactively tell you when someone needs to be repaired or do you need to ask? Will they pay for utilities and taxes or will you get the bill? There is no right answer, you have to figure out what works for you, but just be aware ahead of time so you don’t get any surprises.