What happens when you take a deep dive into cash-flowing turnkey market data?
Turnkey real estate investing, the strategy of purchasing real estate investments that will be managed, ideally A-to-Z, by another party, is one of the most popular ways for capital-rich investors to place assets in a real estate investment vehicle, such as a cash-flowing turnkey rental property. These properties may be:
- purchased for cash or using leverage
- obtained remotely via an investor’s agent, in person, or using one-click online services
- managed in part or whole by third-party property managers
- located anywhere in the world where the assets meet the turnkey investor’s strategic needs and goals.
The remote aspect of turnkey rental ownership makes due diligence — not just on the turnkey service provider but also on the real estate market in question — vitally important.
The following list of “notable” turnkey markets of potential interest to real estate investors for varied reasons, including:
- Significant past performance
- Substantial signs of opportunity
- Major employer movement or employment trends
- Attractive renting population
- Opportunity for strategic turnkey creativity
- Potential pitfalls that might be leveraged for investment gain
*Note: Because of the diverse array of factors we considered, these markets are not numerically ranked. They are described first by metro area, then by county and metropolitan statistical area (MSA).
What to Think About Falling Rental Returns
You’ll notice some of these markets had “better” years in 2017 for annual gross rental returns than they are posting in 2018. They remain “notable” due to long-term, above-average performance, potential economic growth, positive potential in the real estate environment in the broader region, and/or for out-performing the field despite a decline in ROI.