Turnkey real estate firms have a clean canvas and can pick and choose the types of properties to acquire and manage. Some firms enjoy the higher end, multi-unit apartment buildings that need some initial TLC and new management. Many times bringing in professional managers to turn things aroundbeach front turnkey opportunities can provide the biggest bang for the buck and such projects are easily researched. Other companies take a smaller route and specialize in a mini-market such as beach homes in a resort area.

For the individual investor sometimes the smaller approach is better, especially for those just beginning their real estate investing career. What are some of the advantages of vacation rentals?

Cash flow first comes to mind. Renting a beach cabin for a week or two or even an entire month beats staying in a hotel room any day and the rates are competitive. Popular vacation areas are most always rented out and provide considerable spreads between financing costs and rental income.

Vacation rental properties are also very easy to validate. When a Turnkey Real Estate investment firm approaches an investor with all the relevant numbers, verifying sales and rental data is right at the investor’s fingertips. Vacation home sales as well as market rents are almost always readily available online as the information is added to the local multiple listing service. Beach communities also provide year-round income potential with fewer vacancies compared to say a mountain cabin high in the Rockies.

Such investments provide for a much easier evaluation. The properties are easy to manage and maintain, rental income is collected by the management company and after deducting the fees from the turnkey organization the monthly cash flow is easy to understand. This is compared to evaluating a 250 unit apartment building project. For the individual investor who wants to start small, beach front properties just may be the way.