Any turnkey providers helping with BRRR Strategy?

[James Denon]

I am checking turnkey properties. Seems like all of them are charging above retail prices if you compare them with local comps. This makes the exit strategy difficult for the investor. If you hold the turnkey property 5-6 years and it is in a slow appreciating market like Indiana, you may lose money overall selling the house despite the $200/month cashflow you made because you paid too much buying it.

Are there reputable turnkey service providers out there who will wholesale you the property, charge you reasonable amount for rehab and manage the property for you? Essentially helping you do a BRRR in a good market like Memphis, Florida, Atlanta, Texas etc. and maybe indiana or chicago. I would imagine not, since they probably make most of their money with the markup they sell the property after rehab. So charging "reasonable rehab costs" would not fit into their business model. Thoughts?

I am interested in turnkey markets which are likely to keep up with inflation with their appreciation. So that would be 3% appreciation per year. I live in Connecticut and it really sucks because good cash flowing B- properties are hard to come by. Anything that cashflows well is a war zone. Also the appreciation is low in areas that make sense to invest for cashflow.

[Rick Santasiere]

@James Denon, there are markets that exist in CT where the cash flow can far exceed the prospect of what any future appreciation can give you. Filipe mentioned his scenario, which was a great one. His property "appraised" for almost 10% less than what he paid for it, however, the property ended up creating a nearly 40% Cash on Cash rate of return. It is virtually impossible to find everything you want in a property, and I find that sometimes we (analytical investors) can paralyze ourselves if we try to put too many stipulations on what we need in an investment property. With that said, patience is key, as well as the understanding that you need to adjust your views based on the property. Be open to different situations that could change your perspective from a prior deal you may have analyzed. You had mentioned a property that most likely required a full gut rehab a few days ago in an area that is considered to be a potential "war zone." Discussing the turn-key options is certainly another way to think about value (in terms of your time spent). Your return will be much less on a turn key investment (someone else does all the work and drops the "performing asset" in your lap to manage), but will afford you more "time." Time is the most important commodity that this world offers us, because you never get it back, ever. With that said, there are investors who make a business out of buying non-performing assets (like the one you mentioned in that bad spot), then spend a great deal of time, effort and energy getting it occupied, then they re-finance and do it all over again, or sell to an investor who doesn't who want the asset to be performing right out of the gate. Decide what is most important to you. Mike's comments above about creating "value add" is by far the best way to invest and repeat, and most of us thrive in that area. IF we have "time." If you are working 40-50 hours per week, time may not be in decent supply for you, or it might due to your level of passion towards REI. Either way, keep on analyzing, and reach out to some investor friendly brokers like myself, or agents like @Michael Noto who can help you hone in on your prize.