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If you’re an investor looking to make the most out of your property investments, then it’s time to stop buying turn-key properties! Turn-key properties may seem like a great investment because they’re ready to rent out right away, but they often come at a premium price, and you won’t be able to realize the potential value that can come from renovating a property.

Instead, consider investing in properties that require some work. By doing this, you can potentially increase the value of the property and recoup your investment and more! Let’s look at an example:

Say you find a property listed for $450,000. It needs some work, but you estimate that you can put in $50,000 to make the necessary renovations. After the renovations are complete, the property appraises for $500,000. This means that you can do a cash-out refinance and recoup your initial investment of $500,000, plus possibly more!

This is just one example of how investing in properties that need some work can be more profitable than buying turn-key properties. By purchasing a property that needs renovations, you have the opportunity to add value and potentially increase the property’s value, which can lead to higher returns in the long run.

Of course, investing in properties that require some work can come with its own set of challenges. Renovations can be costly and time-consuming, and you’ll need to have a solid plan in place to ensure that you’re able to complete the renovations on time and within budget. It’s also important to make sure that the renovations you’re making will add value to the property and make it more appealing to potential renters or buyers.

In addition, if you’re not familiar with the renovation process or don’t have the necessary skills to complete the work yourself, you’ll need to hire contractors or other professionals to do the work for you. This can add additional costs to the project, and it’s important to make sure that you’re working with reputable professionals who will deliver high-quality work.

In conclusion, while turn-key properties may seem like a safe and easy investment, they often come at a premium price and limit your ability to realize the full potential of a property. By investing in properties that require some work, you have the opportunity to add value and potentially increase the property’s value, which can lead to higher returns in the long run. Just make sure that you have a solid plan in place and are working with reputable professionals to ensure a successful renovation project.