Are you planning on buying a turnkey rental property in Monterey County? If so, a turnkey rental property is a great way to start earning income from that property immediately but there are several things that you should start doing immediately including the following.
#1 – Inspect The Condition Of The Property
Even though the property is being listed as “turnkey”, the reality is that you should always view the property yourself, or hire an inspector, to verify the actual condition of the rental property.
This step is important because the property could have deferred maintenance issues which will need to be repaired immediately once you take ownership of the property.
#2 – Check Out The Neighborhood
Besides checking out the condition of the rental property, you should also review the neighborhood where the property is located.
During the process of reviewing the neighborhood you want to pay close attention to the condition of other properties in the area and see exactly what living there will be like for your tenants.
Questions to ask about the neighborhood:
- What is the condition of other properties in the area?
- Is the rental home that you want to buy close to shops, stores and other businesses nearby?
- How close is the rental property to the freeway and other forms of public transportation?
- Does the neighborhood feel as safe at night as it does during the day?
#3 – Run The Numbers
The final thing that you want to do is run the numbers on the property. This step is vital because a turnkey property may look great but until you actually run the numbers on the property, you’re not going to know if it’s actually a good deal or not.
To analyze the property, you will need to review the purchase information, income, expenses and make sure that it’s going to be a smart move for you financially.
If the property looks like it’s going to be a smart long term move, the next step is to move forward with submitting an offer and if your offer is accepted on the property, make sure that you hire a property manager so that you can earn passive income from that property.
Contact 36 North Property Management
For more information on what to look for in a turnkey rental property, or to speak with us about our property management services, contact us today by calling (831) 484-4604 or click here.