Turn-Key

A fully renovated, tenant-occupied property that generates income immediately upon purchase. Turn-key properties are ideal for passive investors but typically sell at premium prices with lower cap rates.

Key Points

Understanding turn-key is essential for evaluating real estate investments
This concept helps investors compare opportunities objectively
Our Free Snapshot tool automatically calculates relevant metrics for any property

Related Terms

Value-Add

An investment strategy focused on acquiring properties below their potential value and increasing value through renovations, better management, or repositioning. Value-add deals offer higher returns but require more active involvement.

Property Class

A grading system (A, B, C, D) based on property age, condition, location, and amenities. Class A are newer, luxury properties in prime locations. Class C/D are older properties in less desirable areas with higher cap rates but more risk.