Turnkey became a hot real estate buzzword back in the ’80s, as the popularity of move-in ready homes blossomed. In the wake of the housing market collapse of 2008, turnkey properties surged in popularity again. It had suddenly become cheaper to buy a home than rent one in most parts of the United States, and in places like Colorado, that spelled opportunity for investors. It still does.
The ability to buy a property and immediately rent it out is the gold standard for a lot of rental property investors, but if you’re new to the idea of buying turnkey properties to rent out, you probably have some questions. What makes a turnkey property a good investment, and why is Colorado a good place to stake your claim? Let’s get into the nuts and bolts of finding a great turnkey property in Colorado.
Why Invest in a Turnkey Property?
Not everybody wants a fixer-upper! A turnkey property is an apartment building or home that a property investor such as yourself can immediately rent out after buying. These properties have often been renovated to make them move-in ready, and in some cases may already have tenants. They’re popular among investors who have neither the time, resources nor inclination to renovate and maintain the property themselves.
The key benefit of a turnkey property is that it’s a quick-turnaround investment with the potential to start generating revenue almost immediately. Turnkey properties are also popular among investors who are looking to invest in areas beyond their local market. With the right property management, you don’t have to live in the same city, or even the same state, in which your property is located.
What Should I Look For?
There are many turnkey properties in Colorado, but they aren’t all created equal. The good ones go fast, and there’s often bidding wars to get there. Always work with a trusted real estate service when you’re buying a turnkey property in Colorado, and don’t skip out on your homework. These are a few of the qualities to look for in a quality Colorado turnkey property:
The key advantage of a turnkey property is that you don’t have to lift a finger. To be considered a true turnkey property, a home or apartment building must be fully move-in ready. It should be either new or recently renovated, and you should be able to rent it out on day one if you so desire. Some turnkey properties may even have tenants already under lease and property managers already in place. Whether you want that is up to you, but there are certainly advantages to it. Namely, you don’t have to worry about finding tenants or hiring a property management company on your own.
You know the expression, “you can put lipstick on a pig, but it’s still a pig?” Real estate is a lot like that. If a turnkey property has been recently renovated, it’s important to know it’s been renovated well. The last thing you want is a property with hidden defects being covered up by a fresh coat of paint. The property needs to not only look great, but be sound underneath the surface. Make sure the property has been inspected, and get your hands on the inspection report.
Look for turnkey properties that have the kind of modern amenities and attractive updates that renters will swoon over. Stainless steel kitchen appliances, energy-efficient windows and doors, quality carpeting or hardwood floors, good lighting, quality landscaping and fenced-in yards—there are many features that could tempt a renter, and you’ll want to make sure you have some.
A lot of the real estate investors who are most interested in Colorado turnkey properties live out of state. Sellers know this, and unfortunately there are some who might take advantage of the fact that you may not be able to set foot on the property in person. This is why it is always of paramount importance that you work with a trusted real estate service when buying a turnkey property. You can’t always trust that the seller or the seller’s real estate agent have your best interests in mind.
Purchasing a turnkey property eliminates a lot of the question marks that come with a real estate investment, but the importance of location is much the same. If you’re interested in turnkey properties in a city like Denver, for example, you’ll want to do some research to compare neighborhoods, see which areas are on the rise (or are about to be) and look for properties that are well situated to bring in the revenue you need. In smaller cities and towns it may be more important to consider the proximity to tourist attractions.
Colorado is a competitive market for home buyers. But for property investors, the Centennial State offers opportunity. Colorado has been on the short list of America’s fastest-growing states for the last several years running, and that population boom—Colorado added 67,449 people to its population in 2019—is fueling a great demand for rental properties. Condos can be in high demand in major cities like Denver, and single-family homes are skyrocketing throughout the state.
Add in strong economic growth and a vital job market, popularity as a living destination, spectacular landscapes, and a thriving tourism industry, the signs all point to Colorado as a sound place to invest in real estate. Properties are also being built and renovated at a steady clip to keep up with increased demand, which makes finding a Colorado turnkey property a relatively easy process.
Homie Makes It Easy
Sometimes hard to hone in on the right investment amid all the clatter. Working with a dedicated and experienced real estate pro can definitely take a lot of the stress and guesswork out of finding your ideal Colorado turnkey property. It’s also worth remembering that there are alternatives to traditional real estate agents out there.
The Homie team is here to help. Contact us today to find out how it works, and how our team uses the latest technology and real estate expertise to help guide your property investments in the right direction.