Turn-Key Properties - Memphis

[Ro'Maine Pryor]

I am starting out on my buy and hold journey and have encountered some interesting turn key "opportunities" that appear to be great for new investors. Please share your experience if you've dealt with companies that offer (1)property, (2)management, (3)tenant screening/placement, and (4) the monthly income--all from under the same roof.

MODERATOR: PLEASE, NO PROMOTION OF SPECIFIC COMPANIES IN THIS FORUM.

[Jon Holdman]

Dealt with them?  No.  Evaluated a bunch of turnkey deals?  Yes.  I find they are very often over priced for the area.  Claimed rents are higher than reality.  There have been several posts here that discuss ongoing maintenance issues that lead me to believe the rehab was shoddily done.  And posts where the buyer eventually gave up, after discovering the returns weren't there, only to find they couldn't possibly sell the property without a significant loss.  Many of these companies seem to target far-away investors who will evaluate the properties based on where they live, not where the property is.  Your own due diligence is ESSENTIAL to avoid being stuck.

You're going to get a bunch of replies from people either selling turnkeys or collecting referral fees if they refer someone to a turnkey seller.  Again, do you own due diligence.