In Today's Economic Climate EquityBuild Says...
/EINPresswire.com/ Marco Island, Fl - August 16, 2011 -- EquityBuild - In Today's Economic Climate is it Smarter To Purchase a Fixer Upper or a Turnkey Investment Property?
While it seems that there is no end to news reports about a second large wave of foreclosures and continued housing market instability, the sale of turnkey investment properties has increased steadily since 2008, according to the National Association of Realtors.
This dynamic and unique economic housing scenario beckons the question that several potential investment property buyers will inevitably ask; does it make more sense to purchase a standard "fixer upper" or turnkey investment property?
The answer is quite simply, it depends on your goals.
One of the most important criteria to consider when choosing an investment property or a fixer upper is what are your financial resources?
If you choose to go the route of purchasing a fixer upper, you will inevitably have much greater initial out-of-pockets expenses than if you purchase traditional turnkey properties. These types of investments usually come delivered fully rehabbed and with secure tenants in-hand.
On average, turnkey properties will require a 20-25% down payment and conventional Fannie Mae financing. The advantages, however to many investors is time and convenience.
Basically, turnkey investors remove the major hassles of the long process of locating an investment property which will produce immediate cash flow, (always a tricky endeavor) taking responsibility for rehabilitation issues, and finding reliable tenants.
So the real issue at hand here is whether you believe time is money.
Additionally, if you are simply purchasing a fixer-upper for a quick sale and are not looking for a long term investment, purchasing a fixer might make more financial sense.
Another very important factor to consider is the property location. Is the target market volatile? What is the demand for rental property in the area you're researching? Is the area in a college town or popular vacation spot with ebbs and flows in the housing?
All important factors to consider when purchasing any type of investment property.
If you have specific questions related to this article or any questions about turnkey investing, please contact us at www.EquityBuild.com or 800-261-0648.
While it seems that there is no end to news reports about a second large wave of foreclosures and continued housing market instability, the sale of turnkey investment properties has increased steadily since 2008, according to the National Association of Realtors.
This dynamic and unique economic housing scenario beckons the question that several potential investment property buyers will inevitably ask; does it make more sense to purchase a standard "fixer upper" or turnkey investment property?
The answer is quite simply, it depends on your goals.
One of the most important criteria to consider when choosing an investment property or a fixer upper is what are your financial resources?
If you choose to go the route of purchasing a fixer upper, you will inevitably have much greater initial out-of-pockets expenses than if you purchase traditional turnkey properties. These types of investments usually come delivered fully rehabbed and with secure tenants in-hand.
On average, turnkey properties will require a 20-25% down payment and conventional Fannie Mae financing. The advantages, however to many investors is time and convenience.
Basically, turnkey investors remove the major hassles of the long process of locating an investment property which will produce immediate cash flow, (always a tricky endeavor) taking responsibility for rehabilitation issues, and finding reliable tenants.
So the real issue at hand here is whether you believe time is money.
Additionally, if you are simply purchasing a fixer-upper for a quick sale and are not looking for a long term investment, purchasing a fixer might make more financial sense.
Another very important factor to consider is the property location. Is the target market volatile? What is the demand for rental property in the area you're researching? Is the area in a college town or popular vacation spot with ebbs and flows in the housing?
All important factors to consider when purchasing any type of investment property.
If you have specific questions related to this article or any questions about turnkey investing, please contact us at www.EquityBuild.com or 800-261-0648.
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