To Class D or not to Class D ?

[Bill Florence]

I have to say the super cheap class D cash flow turnkeys I see companies marketing such as 2/1 30k homes with tenants and PM in place generating 15% ROI's are intriguing and even tempting. I know some investors go heavy into this market. I also know very well the unique and additional risks involved with these neighborhoods and what are typically vintage homes. But aside from obvious risks like the potentially higher vacancy rates and maintenance, I think a larger concern is years down the road when it is time to sell, where is the property value going to be and who is your buyer ? It seems to me the buyer pool will probably be limited to just other investors and recouping equity could be a problem. I would like to hear from others who have had experience owning (remotely or locally) and bought, held and resold properties in these types of turnkey programs. Would you do it again ?