Imagine investing in real estate without the stress of managing properties, dealing with tenants, or navigating complex market conditions. Welcome to turnkey real estate investing—a game-changing approach that enables you to build wealth effortlessly!
This guide walks you through the ins and outs of this hassle-free investment strategy, uncovering the advantages and disadvantages of turnkey investing, key considerations for this investment strategy, steps to finding a reliable turnkey company, and how RealWealth helps investors like you achieve success. Whether you’re a busy professional seeking passive income, a first-time investor eager to expand your real estate portfolio, or doing a 1031 exchange, turnkey investing offers a gateway to financial freedom.
Let’s dive in and explore how you can transform your financial future with turnkey investments.
What Does Turnkey Investing Mean in Real Estate?
Turnkey real estate investing is a unique investment strategy designed to minimize the complexities and time commitments traditionally associated with owning investment properties. At its core, turnkey rental property investing involves purchasing a fully renovated or new-build property, which is marketed to tenants (some may already have tenants in place) and managed by a third-party company. This allows investors to generate income right from the start!
Where do you find a turnkey investment property? Typically, turnkey rental properties are sold by specialized turnkey real estate companies that handle everything from acquisition and renovation to tenant placement and ongoing management. This approach enables investors to generate passive income without the need to manage tenants and perform maintenance. Turnkey property types vary, from single family rentals to multi-family properties to new build construction.
It is essential to note that the definition of “turnkey” varies across the real estate industry, and there is no standardized quality standard for renovations and management of turnkey rental properties. We discuss this further in the disadvantages section below.
Why Busy People Like Turnkey Rental Properties
For many people, turnkey investing is appealing because it offers a hands-off approach to investing in real estate. Unlike conventional real estate investments, where investors may spend significant time fixing up properties, screening tenants, and handling maintenance issues — essentially creating a second job for themselves — turnkey rental properties are designed to be as effortless as possible. This means that investors can easily diversify their real estate portfolios and enter new markets without physically being involved in day-to-day operations.
Turnkey real estate investing is particularly attractive for busy professionals, retirees, or anyone looking to create a passive income stream. By leveraging the expertise of turnkey real estate companies, investors can focus on their jobs or other pursuits while their investment properties generate returns. This hassle-free approach saves time and reduces the stress and uncertainty often associated with real estate investments.
If you want to learn more about how to successfully invest in turnkey properties, watch this Real Wealth Show podcast with investors Kathy Fettke, Leah Collich and Krista Fettke.
Advantages of Turnkey Real Estate Investing
Turnkey investing offers several advantages for investors seeking a more passive approach to property ownership. Here are some key benefits:
1. Immediate Cash Flow
One of the most compelling advantages of turnkey rental properties is the immediate cash flow. Since these properties are ready for tenants, investors can begin earning rental income immediately, or close to it. This immediate cash flow can significantly enhance the financial stability of an investor’s portfolio, providing a steady stream of income that can be reinvested or used to meet other financial goals. To determine a property’s potential cash flow, conduct a real estate pro forma analysis.
2. Geographic Flexibility
Another advantage of turnkey real estate investing is the potential for diversification into nationwide markets, allowing investors to spread out their investment properties across different states. This geographical diversification can mitigate risks associated with local market fluctuations.
For instance, if the real estate market in one city experiences a downturn, properties in other locations can help balance the overall performance of the investment portfolio. Additionally, turnkey rental properties come in a variety of property types, such as single-family homes, multi-family units, or condos, further enhancing diversification.
3. Reduced Stress & Hassle
Turnkey real estate companies typically have a team of experienced property managers who handle everything from tenant inquiries to maintenance and repairs. With professional management handling day-to-day operations, investors can enjoy a more hands-off experience, reducing the stress commonly associated with property management.
This professional management ensures that the property is well-maintained and that any issues are addressed promptly, thereby protecting the investor’s income stream and maintaining the property’s value. Having a reliable property management team reduces the likelihood of vacancies, as these professionals are adept at tenant retention and marketing.
4. Saves Time
Not everyone wants to flip properties or Buy, Rehab, Rent, Refinance, and Repeat, known as the BRRRR method. Many busy professionals enjoy their jobs and are not interested in the time and expertise it takes to manage a renovation or new-build project.
Turnkey real estate investing offers busy individuals the opportunity to create a real estate portfolio and generate passive income without the hassle of property renovations and tenant placement, as turnkey rental properties are move-in ready and come with management services already in place.
Disadvantages of Turnkey Real Estate Investing
While turnkey investing offers a hands-off approach, it’s crucial to conduct thorough due diligence and consider these potential disadvantages to ensure alignment with your investment goals.
1. Higher Upfront Costs
Turnkey rental properties are typically fully renovated or build-to-rent properties that are ready for occupancy. Since they are rent-ready, properties are listed at a higher purchase price compared to properties requiring improvements. This premium can reduce your initial return on investment.
2. Subpar Renovations
Not all turnkey real estate companies have the same definition of “turnkey.” Because of this, some turnkey investment properties may not have the quality of work you are looking for. While turnkey properties are marketed as move-in ready, it is essential to inspect the quality of the renovations.
In some cases, renovations may be superficial, leaving underlying issues that could result in costly fixes if left unaddressed. Alternatively, some renovations may not comply with local building codes or lack proper permits, which can lead to future complications and revenue loss. Hire a professional inspector to evaluate structural integrity, electrical systems, plumbing, HVAC, and other critical components to avoid unforeseen repair costs.
3. Dependence on Property Management
Turnkey investment properties often include property management services. While this offers convenience, it also means relying heavily on the management company’s integrity and competence to take care of your property as you would. If the managers are inexperienced, it can result in tenant dissatisfaction, maintenance delays, and increased vacancies. All of which affect your return on investment.
You may also like: Property Management Horror Stories
4. Challenges with Long-Distance Ownership
Investing in turnkey properties often involves investing in out-of-state real estate, which can be located miles away from your primary residence. This distance can make it difficult to monitor the property’s condition, oversee management, or respond promptly to issues.
Challenges associated with long-distance ownership can be avoided when you choose the right turnkey real estate company from the outset. This is where RealWealth can help you be successful. We thoroughly vet the turnkey real estate sales and property management teams before they become part of our network. Learn more about how we set you up for success here.
Key Considerations Before Investing in Turnkey Properties
1. Market Analysis
Before diving into turnkey real estate investing, it is crucial to thoroughly research and understand the market in which you plan to invest. Market analysis involves evaluating factors such as 1) local economic conditions, 2) job growth, 3) population growth, and 4) affordability. Once you find a market, you’ll want to dive deeper to analyze potential neighborhoods.
A strong market with growing demand for rental properties will likely yield higher returns and more stable rental income. Additionally, understanding local laws and regulations regarding rental properties is essential to ensure compliance and avoid legal issues.
2. Fully Assess the Turnkey Provider
Another important consideration for being successful with turnkey investing is the credibility and track record of the turnkey provider. Not all turnkey real estate companies offer the same level of service or quality of properties. It’s vital to conduct your due diligence by reviewing the provider’s history, customer testimonials, and any available case studies.
A reputable turnkey company should have a proven track record of successful property renovations or new-build construction, tenant placements, and ongoing management. They should also be transparent about their fees, services, and the condition of the properties they offer. Be very cautious if the team you are considering is not forthcoming with any of this information.
3. Understand Your Financial Situation
Investors should assess their financial readiness. Turnkey rental properties require a significant initial investment, including a 20% down payment, as well as any associated closing costs and fees. It’s essential to have a clear understanding of your budget, including the money set aside to cover any rent losses or unexpected maintenance expenses, as well as financing options, so you are prepared.
4. Know Your Investing Goals
Defining your turnkey real estate investing goals, such as desired cash flow, appreciation potential, and investment timeline, will help you select properties that align with your financial objectives. A well-thought-out investment strategy will guide your decisions and increase the likelihood of achieving your wealth-building goals.
How to Find a Reliable Turnkey Real Estate Company
Finding a reliable turnkey real estate company is crucial for a successful and stress-free turnkey real estate investing experience. Here are key steps to help you identify trustworthy providers:
1. Research Turnkey Provider Reputation
- Get recommendations from other investors: The best way to gauge whether a turnkey provider is legitimate is to hear from real people. Ask other investors or join a reputable real estate investment club, such as RealWealth.
- Read online reviews and ratings: Check out the turnkey real estate company’s reviews and testimonials online.
- Proven track record: Look for a company with a history of delivering turnkey investment properties for sale in stable rental markets that are fully renovated or newly built and occupied.
2. Evaluate Transparency and Services
- Clear Financials: As a potential investor, the turnkey real estate sales and property management company should provide you with specific financial details, such as property prices, rental vacancy rates, management fees, and information on renegotiating lease fees. While they will provide you with a pro forma, be sure to do one on your own and verify their numbers for accuracy.
- Comprehensive Services: A reputable turnkey real estate company should handle property acquisition, renovations, tenant placement, lease renewals, evictions, and ongoing management and maintenance.
3. Assess Renovation & Property Management Quality
- Renovation or new-build experience: Ask about their experience and standards for the types of properties they provide, including why they invest in certain neighborhoods.
- Property management experience: Inquire about the property management team’s experience, tenant screening processes, and protocols for maintenance and eviction.
- Performance Metrics: Request data on occupancy rates, average tenant turnover, and response times to maintenance requests.
4. Ask Critical Questions
By diligently researching and asking the right questions, you can find a turnkey real estate company that aligns with your investment goals and risk tolerance. Here is a list of questions to get you started:
- What markets do you operate in, and why?
- What neighborhoods are seeing the most growth, and why?
- How do you source your properties?
- What is your renovation process and standard?
- Do you personally invest in these markets?
- How long have you been operating a turnkey real estate company?
- What is the scope and quality of the renovations for the properties you rehab?
- Can you provide references from past investors?
- Is the property management handled in-house or outsourced?
- What fees are included in property management? What fees are additional?
- Are properties sold with tenants in place? What is the vacancy rate?
- What is the tenant screening process?
- How do you handle vacancies and unexpected maintenance issues?
- What guarantees or warranties do you offer on renovations and tenant placement?
- What support do you offer if I decide to sell the property in the future?
The RealWealth Difference: How We Vet for Member Success
One of the things that sets RealWealth apart is that we have been in the business of helping others learn how to invest in real estate and connecting them with turnkey investing companies for over 20 years.
We’ve been in the turnkey investing space for so long that we’ve developed a rigorous process for vetting new turnkey real estate sales and management companies, allowing our members to stress less about purchasing and avoid real estate scams.
What does our vetting process look like? Our team physically goes into the market and inspects everything they do, including:
- Rehabs or new-build projects
- Track record
- Background checks
- Reference checks
- Management practices
To learn more about our process, watch this video featuring Kathy Fettke and the RealWealth Property Team Managers, Grant and Rebekah Anderson.
Additionally, our recommended turnkey property teams must adhere to our REAL Income Property™ Standards. These standards provide the turnkey real estate companies we work with guidance on the quality of work we and our members expect.
REAL in REAL Income Property™ stands for:
R – Renovated or built (to REAL Income Property™ Standards)
E – Examined (through inspections) and due diligence
A – Appraised (purchase price at or below market value)
L – Licensed property management
These standards are also beneficial for members, as they provide confidence when working with RealWealth’s recommended turnkey real estate companies. Additionally, members can use them as a checklist when conducting due diligence to assess potential teams and turnkey rental properties for sale.
Our goal is to always connect our members with the best turnkey real estate companies. We do everything possible to ensure that the turnkey teams we choose to work with align with our commitment to quality and investor success.
Where to Find Turnkey Rental Properties for Sale
A simple online search will bring up potential turnkey rental properties for sale. However, we do not recommend you go this route. As we mentioned earlier, there is no industry standard for the definition of ‘turnkey’, and you could find yourself working with a shady turnkey real estate company and put your money at risk.
To find the best turnkey rental properties for sale, we strongly recommend using a reputable real estate investing company or club, such as RealWealth. The turnkey teams we recommend sell off-market single family and multi-family investment properties in top U.S. markets. In addition, we never mark up the properties. Other turnkey investing clubs don’t follow the same standards as we do. If you go out on your own, be sure to assess everything they do, as a bad location can tank your ROI, and a property mark-up can affect your bottom line.
View Turnkey Rental Properties for Sale Now
Turnkey Real Estate Investing in Action: Your Next Steps
Turnkey investing offers a unique and hassle-free approach to building wealth through real estate. While you could go it alone, researching markets and vetting turnkey teams and property managers, it takes time and commitment. We’ve found that extra time is one thing most people lack.
When you choose to become a RealWealth member, you’ll save yourself time and hassle. We provide everything you need to be successful, from direct connections to turnkey property teams to a wealth of resources designed to help you achieve your financial goals through turnkey real estate investing.
If you are ready to start your turnkey investing journey, join RealWealth today.
Frequently Asked Questions
A turnkey rental property is ready for immediate occupancy and available for tenants to rent. It is a fully rehabbed property or a new build, may come with tenants in place, and has property management in place. Investing in turnkey real estate is ideal for busy professionals or investors who want cash flow without the hassle of renovations or property management.
Turnkey investment properties offer investors immediate cash flow potential from day one, along with professional property management and the ability to diversify across multiple markets. It’s ideal for busy professionals or new investors who want to build long-term wealth without the stress of hands-on renovations or tenant management. Learn more in Turnkey Real Estate Investing: Your Guide to Hassle-Free Wealth Building.
Turnkey property providers are not created equal, and across the industry, there is no standardized definition of what constitutes a turnkey rental property or a turnkey rental company. Some red flags to watch out for are providers who overpromise returns, hide critical details, or fail to meet quality standards. Others may lack third-party inspections, fail to provide transparency about their markets, or have limited experience in property management. Because of this, it’s up to you to thoroughly vet any turnkey real estate company you are considering. Learn how to set yourself up for success and vet providers in Turnkey Real Estate Companies: 8 Red Flags You Need to Know.
The best turnkey companies offer complete transparency, have a proven track record in property management, and possess local market expertise. They should also align with investor goals (such as cash flow, appreciation, or a combination of both) and provide ongoing support, rather than just a one-time sale. RealWealth partners only with vetted property teams that meet our REAL Income Property™ Standards, and RealWealth Investment Counselors provide ongoing support to all our members.
Both strategies build wealth through real estate, but they are suited to different types of investors. Turnkey real estate investing offers ready-to-go properties that generate predictable cash flow with minimal effort, making it an ideal investment option for passive investors. The BRRRR strategy—Buy, Rehab, Rent, Refinance, Repeat—requires more hands-on involvement, greater risk, and potentially higher returns. Learn more in our article How to do a BRRRR Strategy in Real Estate.
Begin by identifying your financial goals, target markets, and level of comfort with risk. Then, work with a turnkey real estate company like RealWealth that connects you with vetted property providers selling off-market turnkey rental properties in the nation’s top markets. It’s 100% free to join, and you’ll receive access to education webinars, property team connections, and ongoing support from an experienced investment counselor. Explore the various types of turnkey rental properties available for sale.
While you can buy a turnkey real estate on your own, we highly recommend joining a real estate investment club like RealWealth (membership is free). Working with a trusted company and provider will save you time and money.
For over 20 years, we’ve been helping people build wealth through real estate, and as investors ourselves, we have experienced the ups and downs of the housing market. With our resources, you can connect with vetted, turnkey property teams in top U.S. markets, as well as other industry resources, including lenders, lawyers, and asset protection specialists.
As a member, you’ll have access to property pro formas, local market insights, and a dedicated Investment Counselor to help you evaluate markets and deals. Once you have chosen a property, review the pro forma, verify the management, and finalize the closing. Your local team then handles operations—so you earn hands-off, passive income from day one.
As a leader in the industry, our members tell us that our free education and resources, direct connections to vetted turnkey property teams, and ongoing support from pros have helped them successfully invest in passive turnkey real estate. Hear directly from RealWealth members who are achieving financial freedom through turnkey investing and real estate syndications.
At RealWealth, we don’t just provide access to turnkey providers; we also offer personalized support from experienced investors. This support is designed to help our members succeed at every step of their investment journey. Join us for free at RealWealth.com and start learning and investing with confidence.
Yes, as a member, you’ll have full access to sample turnkey rental property pro formas that show projected cash flow, ROI, and other key metrics. While you can connect with a property team at any time after joining, we highly recommend scheduling a strategy session with your investment counselor to help tailor your investment strategy to your goals, whether focused on cash flow, appreciation, or a hybrid market approach. Once you connect with one of our vetted property teams, they will send you current inventory—including available turnkey rentals with full pro formas—so you can evaluate potential returns before investing. You can also use analysis software like DealCheck to run your own projections.
The 1% rule helps investors quickly estimate if a potential rental property will generate positive cash flow. This calculation says that the monthly rent should equal at least 1% of the property’s total purchase price, including renovation costs. The 2% rule sets a higher benchmark—2% of the purchase price—but is rare in today’s market. These rules are helpful screening tools, not absolute indicators of performance. Learn more and see examples in “What are the 1% and 2% Rules in Real Estate Investing?”
Yes! Investing out of state can unlock more substantial cash flow, faster growth, and geographic diversification, mainly when you invest in more landlord-friendly, affordable markets. Success hinges on choosing the right market, building a reliable local team, conducting thorough due diligence, and managing remotely with professional services or working with a company like RealWealth that provides direct access to turnkey property teams who sell off-market properties with property management in place. Read our guide to learn more about Out-of-State Real Estate Investing Strategies.
There are several ways to find turnkey rental properties for sale, including the MLS (Multiple Listing Service) and working with real estate investing companies like RealWealth. The method you choose is based on your skill level, investment goals, and the amount of time you have available. Many investors prefer to invest through RealWealth because they have limited time or want to expand their portfolio with low effort. By partnering with us, you can easily connect with vetted property teams that operate in some of the nation’s top-performing metropolitan areas, including Dallas, San Antonio, Indianapolis, Cincinnati, and Birmingham, among others. Each property team offers professionally renovated homes or new build properties with property management in place, making it easy to invest remotely.
When you join RealWealth, you’ll gain access to a vetted network of industry pros like asset protection specialists, lenders, 1031 exchange facilitators, and more, who understand real estate investing and investors. Members can connect directly with these experts to build customized strategies for protecting their rental property portfolios.
Pros: Turnkey investing offers immediate cash flow, since they’re renovated, tenant-ready, and often already have property management in place. That saves you time, stress, and the hassle of renovation and leasing, as well as the day-to-day headaches that come with being a landlord. This makes it an ideal investing strategy for those wanting a more passive income stream.
Cons: Turnkey investment properties typically carry higher upfront costs due to the “rent-ready” premium. Depending on the property provider, renovations may sometimes be superficial or inconsistent in quality, and often rely heavily on the property management company’s competence. You can also face challenges with long-distance ownership (laws, inspections, local oversight). Not all turnkey companies and markets are equal; it’s critical to partner with a reputable turnkey provider and conduct thorough due diligence.
Learn more in Turnkey Real Estate Investing: Your Guide to Hassle-Free Wealth Building.
Section 8 properties are rental homes that accept tenants using government housing vouchers through the U.S. Department of Housing and Urban Development (HUD). Investors receive consistent rent payments directly from local housing authorities, which can provide stability even in changing markets. However, these properties often come with stricter inspections, more paperwork, and longer timelines for tenant placement. Learn more about evaluating rental property strategies in Section 8 Properties for Sale & Why Buy Now, and see if it is right for you.
A variety of professional analysis software is available for real estate investors. We recommend DealCheck, which has a free and paid version. All of our pro formas are created in DealCheck, and RealWealth members receive an exclusive discount on the paid version. Analysis tools like these can be invaluable for understanding the viability of a property. To get more accurate rental prices, we recommend RentCast. These resources make it easier to evaluate returns, compare markets, and make data-driven decisions before making a purchase.
To find rental properties in states with favorable landlord laws, first review RealWealth’s guide on Landlord-Friendly States. Markets like Texas, Florida, Alabama, Georgia, Indiana, Arizona, and North Carolina typically have faster eviction processes, no or limited rent control, and fewer regulatory hurdles for property owners. These locations are commonly included in RealWealth’s vetted turnkey investment opportunities, making them good places to start when looking for landlord-friendly turnkey rental properties.
The cities that tend to offer the best return on investment (ROI) for rental properties combine strong job growth, affordable home prices, and rising rents. RealWealth’s heavily researched markets, including Dallas, San Antonio, Birmingham, Chattanooga, Cleveland, and Indianapolis, consistently rank as top performers. These metros often feature favorable landlord laws and solid rent-to-price ratios, making them ideal for investors looking for cash flow and appreciation. Explore detailed market data and vetted turnkey opportunities in the article Best Places to Buy Rental Property.
Getting started is simple. Join RealWealth for free to access vetted turnkey teams, investment counselors, investor education, and sample property pro formas. Your RealWealth Investment Counselor can help tailor your investing strategy, connect you with trusted teams, and guide you through your purchase—so you can confidently grow your real estate portfolio and build long-term wealth.
