Turn-Key For Newbie

[Drew Kimminau]

So I am a fairly new real estate investor in the St. Louis area and I've noticed some turn-key companies in the St. Louis and Kansas City area. Many of these turn-key homes do not have the ROI/Cash on Cash return I'm looking for but since these companies are still in business I guess someone is buying them. I assume their niche is probably someone with a larger cash pool who is just looking to diversify their portfolio. So do you think as a newbie something to look into might be buying SFH placing a tenant and property manager then just selling the property for say $10,000 more. To me it almost seems kinda like a wholesale deal but even if I end up holding the property for longer than I want it's no skin of my back because the property will be cash flowing. The main reason I would want to do this would to just increase my cash pool so I can invest in larger complexes with better returns. Some hypothetically numbers with a home I'm looking at would be buy a home for $55,000 or $60,000 which could rent for $850-$900. I then turn around and sell it when I place a tenant and property manager for around $65,000 or $70,000. Taxes are low, area is fine, and the new owner would still cash flow a couple hundred with a pretty good return. Definitely returns equivalent to other Turn-key company homes that I've seen.

This is me kind of just rambling about this idea so feel free to just let me know what you think or if you know much about turn key companies. 

Thanks everyone!!