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Turnkey Property
A fully renovated, tenant-occupied property sold ready to generate immediate rental income.
Definition
A turnkey property is a move-in-ready rental that has been renovated, tenanted, and often comes with property management already in place. Turnkey providers handle the acquisition, renovation, leasing, and management setup, selling the finished product to out-of-state investors. The appeal is passive ownership from day one — no renovation headaches or tenant placement delays. The trade-off is paying a premium price for the convenience, which typically reduces returns compared to doing the work yourself. Turnkey investing is popular among busy professionals and out-of-state investors who want rental income without hands-on involvement.
How This Relates to DSCR Loans
Turnkey properties are ideal candidates for DSCR financing because they already have a tenant, established rent, and known DSCR from day one.
Related Terms
Buy and Hold
Purchasing rental properties and holding them long-term for cash flow, appreciation, and tax benefits.
Cash Flow
The net money remaining after all income is collected and all expenses and debt payments are made.
Cap Rate
The ratio of a property's net operating income to its market value, used to estimate return potential.
Stabilized Property
A property that has reached a consistent occupancy level and is generating predictable income.
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