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Where to Find the Best Turnkey Rental Property Investments

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Imagine owning a property that not only pays for itself but also generates profit from day one without the hassle of renovations or finding tenants. Turnkey rental properties have become a buzzword in today’s real estate investment landscape. These properties, which are fully renovated and rent-ready, offer investors a convenient entry into the rental market.

However, not all turnkey investment properties are created equally, and not all markets are well-suited for Turnkey properties. Before purchasing a turnkey rental property, investors must understand the markets they choose and their long-term profitability. Buying an asset based solely on today’s returns could leave property investors open to risk. Purchasing an asset based solely on today’s returns might seem appealing, but it’s crucial to consider the broader picture to safeguard your investment.

In this article, discover how to evaluate real estate markets and where to find the best turnkey rental properties.

What are Turnkey Rental Properties?

Turnkey rental properties are a distinct investment category apart from traditional investment properties. These are not fixer-uppers or properties that demand extensive time and effort before they start generating income. Instead, turnkey properties offer convenience and immediacy. They are the answer for busy or remote investors looking to bypass the usual hurdles of property investment – extensive renovations, tenant searches, and initial property management setup.

Turnkey properties are rental properties that are investment-ready from the get-go. These properties have already been acquired, extensively renovated, and made rent-ready by developers. In many cases, they even come with tenants in place and a property management system already operating seamlessly. This contrasts with traditional investment properties, which can be purchased in various states of repair, disrepair, or vacancy, requiring significant input from the investor before yielding returns.

Turnkey rental property offer immediate rental income. Turnkey real estate companies take on the burden of finding, renovating, and leasing the property, thus handing over a fully functional and income-generating asset to the investor. This real estate investment model is particularly appealing to those who need passive real estate investing because they don’t have the time or inclination to manage renovations and tenant placement.

How to Evaluate Real Estate Markets for Turnkey Investing

If you want to know how to find turnkey rentals, you need to start with market research. The best turnkey real estate markets will have stable growth, affordable price points, resilient economies, and strong rental demand. To find them, you need to understand how to evaluate individual markets. This involves analyzing various economic and demographic indicators to assess whether a market offers the right conditions for a profitable and secure investment.

Here are key factors that should be considered:

  1. Median Household Income
    Median household income is an indicator of economic strength. Higher median incomes generally suggest a higher potential for rental income. However, there are more important factors. What you really want to check is what kind of income growth the region can expect due to incoming jobs.
  2. Population
    Growing metro areas often indicate a healthy, expanding economy, which can lead to increased demand for housing. This can positively impact both rental rates and property values.
  3. Population Growth
    Looking at population growth over a significant period gives insight into long-term trends. Consistent population growth is a positive sign, indicating a stable and potentially expanding market for real estate investments.
  4. Median Home Price
    The median home price is a basic metric that helps investors understand the average cost of entering a market. Markets with lower median home prices might offer more affordable investment opportunities, but this needs to be balanced against potential rental income.
  5. Median Rent Per Month & Rent-to-Value Ratio
    Higher median rents suggest a stronger rental market, which is crucial for turnkey properties. However, what’s more important is the rent-to-value ratio. This ratio compares the median monthly rent to the median home price. It’s a crucial metric for evaluating the potential return on investment. A higher rent-to-value ratio signals a more favorable market for turnkey rental properties.
  6. 1-Year and 5-Year Equity Growth
    Equity growth is important. Some markets will have outperforming growth over a short period, but evaluating a longer period, such as five years, helps investors see real and sustainable trends. Positive growth indicates increasing property values, which can contribute to the overall return on investment.
  7. 1-Year and 5-Year Rent Growth
    Similar to equity growth, analyzing rent growth over short and long periods can show both the current trend and the longer-term stability of the rental market. Consistent rent growth is a good sign of a strong rental market. Top turnkey property locations will have consistent and stable rent growth (but not overinflated prices) that foretells future growth.
  8. Job Growth
    Job growth is directly tied to income growth and real estate demand. Areas with robust job growth typically see an influx of workers needing housing, which can drive up both rental and property prices.
  9. 1-Year Job Growth Rate
    This indicator helps in understanding the current economic momentum of a market. A higher job growth rate suggests a booming economy, which can benefit real estate investments.
  10. Unemployment Rate
    Lower unemployment rates generally signal a healthier economy, which can lead to higher demand for housing and potentially higher rents.

The Best Turnkey Real Estate Markets of 2024

Finding turnkey rental properties starts with finding the right market. Investors shouldn’t hop from one market to another but instead pick a market where they can build relationships and a team. At the start of your investment journey, the market you choose is one of your most crucial decisions. Changing markets, finding a new team, and selling properties all cost time and money. When you start investing in turnkey properties, you want to choose a market with sustainable growth, solid rental returns, and low risk.

When researching turnkey real estate investment markets, you want to ensure your data is trustworthy. Some valuable resources include:

Locating Turnkey Investment Opportunities Made Easy

We’ve made a list of the best turnkey real estate markets of 2024 and have included the data to support our claims. One thing you will notice is that many of these markets are located in Ohio, and that’s mainly due to affordability and new business investment. Companies like Intel, Google, and Amazon are increasingly adding new positions to our state, which could lead to a housing boom.

Toledo, Ohio: The Top Turnkey Real Estate Market

At the start of the year, Realtor.com releases its predictions for the top real estate markets in the country. This year, Toledo, Ohio, was declared the hottest market in the country.

The story behind what makes Toledo such a fantastic market to invest in comes down to cash flow, affordability, and stability. While Toledo hasn’t benefited from the 20-30% year-over-year price jumps like many other hot markets (Austin, Charlotte, Phoenix, Boise), home prices also didn’t correct over the past year when rates jumped. Most markets that boomed in the past few years has the biggest price drops when interest rates increased. But in Toledo, Ohio, home prices continued rising despite elevated interest rates and are expected to increase over 8% over the next year.

Investors in Toledo get fantastic cap rates on their assets, but they also get confidence in the market and that their capital investment is secure. Furthermore, with half the city’s population being renters,

Toledo Real Estate Market Stats:

Cleveland, Ohio: Resilient Turnkey Properties

When investing in real estate, there’s often nothing more attractive than a resilient real estate market. A resilient market gives investors the confidence that the market they are buying turnkey properties into can withstand market downturns and economic stress. That means that even when other major markets around the country are taking a nose dive, your property values hold tight. That’s what investors in Cleveland, Ohio, get.

A study released by Redfin announced that Cleveland is the fifth most resilient market in the country. Over the past five years, Cleveland experienced a remarkable 115% but corrected about 9% in the past years. In 2022, Cleveland was ranked as the #1 real estate market in the country by Money Crashers. According to Norada Real Estate Investments, the Cleveland market is stable and positioned for growth, making it an excellent choice for turnkey real estate investors.

Not only is Cleveland’s market resilient, but it’s affordable. The median price of a single-family home in Cleveland is just $110,000, less than a third of the average home price across the country.

Cleveland is a great real estate market for turnkey real estate investment because it offers stability and an affordable entry price point. Furthermore, the city, once known for its manufacturing, is now reinventing itself as a medical and Biomed center, attracting high-paying income companies and talent, totaling 120,000 medical professional residents. In addition, 70% of the nation’s Fortune 500 companies have a presence in Cleveland.

Cleveland Real Estate Market Stats:

Omaha, Nebraska: Steady Growth and Diverse Economic Strengths

As 2024 unfolds, Omaha, Nebraska, stands out as a burgeoning market in the turnkey real estate landscape. The city’s housing market, according to Redfin, has seen a notable surge, with median home prices climbing to $260,000—an 8.3% increase from the previous year. This growth is complemented by homes selling faster, averaging just 15 days on the market.

Despite the price rise, Omaha’s real estate remains more accessible than many other major cities. The median sale price is 36% lower than the national average, offering a welcoming entry point for real estate investors.

Omaha’s allure is not just local; it’s national. Recent data reveals that 0.15% of homebuyers across the United States are considering moving to Omaha. This interest is a testament to Omaha’s increasing prominence as a residential haven.

With an unemployment rate of 3.2%, Nebraska is a beacon of economic health, sitting below the national average. The city’s robust job market is fueled by diverse industries, which underpins a strong housing sector. Major industries include agribusiness, education, healthcare, finance, and insurance. Offutt Air Force Base, a significant local employer, contributes to the rental market demand. The base’s presence ensures a consistent influx of renters, a key consideration for investors in Omaha’s real estate.

Over the past decade, Omaha’s population grew by about 10%, bolstering the demand for housing. This steady influx of residents is a positive indicator of sustained growth in the real estate market.

Norada Real Estate Investments forecasts a growth of +3.8% and believes that there’s no real estate crash in sight. While Omaha might not have fastpaced growth, it is strong and stable, ideal for investing in turnkey properties. Its economic diversity, combined with a strong job market and affordable housing, positions it as an attractive option for both long-term residents and nationwide homebuyers. The negative of Omaha is that investors don’t get the same kind of cap rates as they would in Toledo or even Cleveland.

Omaha Real Estate Market Stats:

Cincinnati, Ohio: A Rising Star in Turnkey Investments

Cincinnati offers both affordability and a strong rental property market, with 61% of the city’s residents being tenants. With a median home price of $259,000, it’s 35% less expensive than the national average, offering a significant price advantage for investors. This price point, coupled with a median monthly rent of $1,306 (30% less than the US average), makes Cincinnati an attractive market for turnkey rental investments. Why? Because cash flow is strong, there’s still a lot of room for growth.

Cincinnati’s economy, one of the largest in the Midwest, is a blend of stability and growth. The presence of Fortune 500 companies like Procter & Gamble and Kroger adds to its economic resilience. The city’s GDP has seen a 25.4% increase over the last five years, indicating a robust and expanding economic environment. This economic stability and an affordable real estate market create an ideal scenario for turnkey property investments.

Investing in Cincinnati’s real estate requires a strategic approach. With properties selling quickly due to a shortage in inventory, investors need to be decisive and prepared to act swiftly. The city’s diverse neighborhoods, each with their unique growth trajectories, offer a range of investment opportunities. For turnkey investments, it’s crucial to ensure that properties are appropriately updated and maintained with durability in mind. This attention to detail can significantly impact the long-term viability and profitability of the investment.

The question that investors need to ask themselves about Cincinnati is: When is the peak, and are we almost there? When a real estate market has strong growth for a sustained period, eventually, it tends to taper off and plateau for some time. Turnkey property investors in Cincinnati must make sure they purchase in desirable areas to ensure long-term profitability.

Cincinnati Real Estate Market Stats:

Finding Turnkey Rental Properties Starts With an Investment Company

The turnkey real estate market has some great investment property providers, but you’ll come across just as many bad developers. Investors must find a turnkey company that delivers sustainable rental properties in areas with strong rental demand.

Toledo, Ohio, stands out as the best turnkey real estate market not only because it has a sustainable market and business-centric economy but also because it has plenty of opportunities for flippers and turnkey developers. Investors and developers can acquire affordable distressed assets, invest capital, and turn them into profitable rental properties.

In turnkey property investing, effective property management is key, especially for investors seeking a passive, hassle-free experience. The right turnkey company offers more than just a property; it ensures seamless, ongoing management, which is crucial for long-term success and ease of investment.

Ohio Cashflow: Your Strategic Partner in Toledo

Ohio Cashflow has been providing turnkey real estate investments for a decade. Our expertise lies in leveraging the city’s unique market dynamics to find top turnkey property locations that offer high-quality, resilient rental properties. We ensure that each investment is financially rewarding and professionally managed by our in-house property management company. Our clients get a true passive real estate investment experience. With Ohio Cashflow, turnkey property investors step into a world of carefully curated properties, each chosen for its potential to deliver outstanding returns with minimal fuss.

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About the author

Kelsey Heath
Kelsey Heath is a real estate content specialist with an extensive background in residential, industrial, and commercial property. She has been involved in the industry for a decade as a professional and personal investor, gaining a deep understanding of the market and trends. With a passion for written communication, Kelsey loves helping people understand the sometimes-complicated concepts behind real estate and is now a sought-out guest and ghostwriter.