Turnkey - Why Flip to Investors?

[Account Closed]

At a recent investor club meeting, a group of investors raised the question - why do Turnkey Companies "flip" their properties primarily to investors as opposed to owner occupants? One person responded, "because the majority of Turnkey companies operate in markets/neighborhoods with low job growth and limited capital appreciation... therefore little interest from owner occupant buyers." Another investor said, 'because some companies buy in neighborhoods/cities with incredible cash flow (2% rule of higher), but the problem is, very few prospective owner occupants want to live in those areas. Yet another investor thought that  many turnkey operators want to help investors realize higher returns.

Clearly, there are Turnkey companies that operate in excellent growth markets such as Austin, but I thought I will turn the discussion  into a forum to get a few different perspectives. Happy investing!