Memphis Invest vs Memphis Turnkey

[Sachin Amin]

I am out of state investor looking to invest in Memphis, TN (mostly turnkey) and the two turnkey companies which stand out are Memphis Invest and Memphis Turnkey Properties, both have solid reviews. some of the reviews I read about Memphis invest are they sell their properties above retail, leaving investors with possibly very narrow profit margins.

can any of you share your recent experience or ROI with these (cap rate or perfoma's) and do they provide financing options or just cash offers.

cheers

Sachin

[Ned J.]

All the turnkey providers are going to say otherwise, your concerns about buying above market is very common in the turnkey model.
That's the price you pay for turnkey..... people focus solely on the "cash flow" numbers they are given and forget to really look to see if the purchase price and future appreciation are really a good deal.

Buying a house at/above the top of the market in an area that shows very little appreciation historically will in the long run eat a large portion of all the "cash flow" you get over the years. That doesn't become evident until you try and exit...... people think they will "hold forever", but most don't.... things change and you have to look at your exit plan too. Rehab to get to "for sale condition" and RE agent sale fees, can easily eat years of "cash flow" that don't get offset by having the place go up in value during your ownership.

Not saying all turnkeys are bad..... you just have to look at the big picture....not just some "cash flow" number.....