Why turnkey provider don't include tenant placing fee in analysis

[Anjesh Dubey]

Question for BP and turn key PRO regarding turnkey cash flow analysis.

Any turnkey property analysis I find looks great at first sight and I would buy it right away. But as soon as I add any fee charged by property manager to place tenants it becomes from wow to meh. I am aware that for first year turnkey provider places tenant for you and fee is already adjusted in selling price and that's why it's not included in analysis done by them either.

But I am not buying for one year and after that one year there will be one month rent charged by property manager to place new tenants and as soon as I add that in calculation it reduces my monthly income by 8.3% which can easily bring any cash flow to under 100 if not negative on any property. This makes any really good turn key deal into ok or run away from it deal as anyone who is investing wouldn't want negative cash flow at-least.

Not to mention I haven't added any captital expenditure like appliances, roof, hvac etc. I know since most of the stuff is already rehab here we shouldn't include it in analysis. But I think that can be argued but I believe tenant placing fee can't be argued and should always be included, just want to know the BP community thoughts as this is the single reason I haven't jumped on turnkey investment. 

Below is the example of analysis, my question is shouldn't providers include this in analysis and adjust the selling price accordingly? 

• No Tenant Placing Fee and No Cap-ex (5% Vacc; 5% Repair and Main; 10% Prop Management) = $196 Cash flow wow!!

https://www.biggerpockets.com/calculators/shared/1...

• Include Tenant Placing Fee but No Cap-ex (One month rent: 1275/12 = 106) = 90 Cash flow meh!

https://www.biggerpockets.com/calculators/shared/1...

• Include Tenant Placing Fee and Cap-ex (Cap-ex merely 2% since it's rehabbed and all) = 65 Cash flow doesn't make sense

https://www.biggerpockets.com/calculators/shared/1...