Turnkey Market 2017?

[Will Jo]

Hello BP,

I am ready to take the plunge into a turnkey property. I live in NYC and am just simply priced out of my own area. I am looking into Memphis currently and am looking primarily looking for strong cash flow with appreciation being a secondary concern.

I have a question for those investors who already have turnkeys in their portfolios who have similar goals as I do (positive cash flow) who may or may not be investing in this area already.

I like Memphis because of the numbers and strong cash flow it generates. In the BP spreadsheet section:

https://www.biggerpockets.com/files/user/ScottTren...

Memphis is the clear front runner in rent % of price, which is attractive from a cash flow standpoint. However as @Mike D'Arrigo points out in this thread:

https://www.biggerpockets.com/forums/12/topics/405...

the population is stagnant (?) with a lower GDP / capita than Kansas City or Indianapolis which may hinder future job growth in the area. (Granted I am not sure where his data is being sourced from).

Additionally, with Memphis being such a hotbed for investors currently I feel like I am late to the game and may not see as good returns as others have been seeing.

I am curious about other "turnkey" markets that investors are considering right now.

My first question is: If you were me, cognisant of the goals, where would you invest TODAY? Is Memphis still attractive for future growth / cash flow? Additionally, if you are investing in Memphis TODAY what are some selling points for an investor like myself?

My second question involves financing. There are lenders out there that work with turnkey companies that provide financing in all 50 states. Generally, are these lenders as competitive as smaller LOCAL banks? i.e. National lenders vs. smaller Memphis lenders.

I am a financial analyst and would love to base my decisions solely on numbers. If anyone can provide some analytical input to the discussion, it would be much appreciated.

Thank you for the input