Real estate investing has always been a popular wealth-building strategy, but it typically requires significant time, capital, and expertise. Investors often need to purchase a property, renovate it, and then either sell it or manage it as a rental. This process can be both costly and time-consuming.
Turnkey properties present an attractive alternative for time-constrained investors who lack the time or knowledge for traditional real estate ventures. We’ll explore what turnkey properties are and why they might be a valuable addition to your investment portfolio.
What Are Turnkey Properties?
Turnkey properties are move-in ready, single-family or multi-unit properties that are either newly built or have been recently renovated. These properties typically come with existing tenants and low vacancy rates. The most significant advantage for investors is that they are managed by professional property management, allowing for a truly hands-off investment experience. This passive income model empowers investors to grow their wealth by acquiring multiple properties over time.
Benefits of Investing in Turnkey Properties
Immediate Passive Income:
Turnkey properties offer the potential for immediate income from day one. Profits are generated from rental payments (minus expenses). With rental rates typically increasing each year, averaging 3%-5%[1], this model offers both short-term and long-term wealth-building potential through property value appreciation.
Hands-Off Approach:
One of the most appealing aspects of turnkey properties is the hands-off approach they offer. Professional property management handles day-to-day operations, including maintenance, repairs, and rent collection. This is a significant advantage for busy professionals and those who prefer a passive investment strategy.
Minimal Real Estate Knowledge Needed:
Turnkey properties do not require investors to be real estate experts, though some knowledge is beneficial. Property evaluation and due diligence can be performed by professional brokers or investor themselves, referencing historical operation and market data, to ensure the investment is sound. This makes turnkey properties suitable for those new to real estate investing.
Diversification:
The hands-off approach allows investors to scale their investments and diversify their portfolios by investing in a wide range of property types and spreading investments across different geographic regions to balance growth and risks.
Fractional Investment for Accessibility
At Ark7, our fractional investment options offer fractional shares in turnkey rental properties, breaking down barriers and allowing anyone to get started with a minimal investment of $100 per share. Recent graduates can enter the real estate market and start learning, families can set aside a small amount to invest for monthly passive income, and retirees can diversify their portfolios over time. These turnkey properties offer a unique opportunity to build wealth in both the short and long term.
If investing in turnkey properties aligns with your financial goals, you can find properties that fit your budget and plans in our marketplace. Build a portfolio that allows you to add new properties and increase your income without requiring a large initial commitment or major financial investment.
Source: [1] Average Rent by Year [1940-2025 ]: Historical Rental Rates
