Smart Turnkey Investment Properties in Kansas City

The Key to Smart Turnkey Investments

Quality in the property itself and quality in the PM (property management company) that we use. Of course, we want to provide excellent value and rate of return as well, but if the quality of the property and the quality of the PM is not there, then the value and ROI will go down quickly.

First, quality property: For our turnkey investments in Kansas City, it's very important that the property be recently updated and all major mechanical systems are new or relatively new. This will accomplish two primary things. It will attract the best, long term tenants who pay on time every single month. Even in today’s market of high rental demand, people will not live in a place that is not clean, attractive, and functioning properly.

The second thing a quality property will do is preserve the high rate of return by eliminating high maintenance costs. A property will not make for a very good investment if the owner has to continually make repairs or updates, even if the initial cost of the property is very low. By purchasing a newly renovated, quality property to begin with, the investor has removed the need for a high maintenance budget and therefore improved the probability of high investment returns.
Next is a quality PM, or Property Management Company. A quality PM is essential for out-of-area investors. We recommend professional PM even for investors that live in the area they are investing in. This is because a quality PM will actually save the investor a lot of money and frustration in the long term.

If found that there's two different schools of thought when it comes to cash flow property owners. One group believes that a good PM is cheap, compared to the hassle of trying to manage tenants, lease contracts, inspections, maintenance, etc... The other group says, "You can't make any money unless you manage your own properties...” Well, the first group who uses a good PM is not worried about landlord issues. These investors, like us, will not be bothered with telephone calls from tenants while we're eating our evening meal, playing a round of golf, or in the middle of the night. We don't worry about having to fix things or having to find a qualified person to fix something if we can't do it ourselves. We don't worry about evictions, rent collections, or filling vacancies. In fact, the tenants don't even know who we are! We pay a small fee to have the entire landlord process done for us.

The other group of investors who manage their own properties will get calls day and night, will be fixing toilets and kitchen sinks, will be going around collecting rents, and doing all of the other things that landlords must do. These investors end up spending more time and money, and have more frustrations all because they wanted to save a few dollars.

The truth is, if you're buying quality properties in the right market, you'll have more than enough cash flow every month to outsource all the land lording tasks and still make a handsome return on your investment. We've been able to create these types turnkey opportunities here in our own back yard of Kansas City.