Does turnkey exploit the 1% rule?

[Matthew Terry]

Hello BP Mates,

There is an ongoing debate (and I've read the majority of posts about this) if turnkey providers offer a good product for investors. I'm not here to debate this, but what I find interesting is that the vast majority of turnkey companies that offer "like new" fully rehabbed properties in "cashflow" markets list the target rent at exactly 1% of the sale price. It is overwhelmingly like this. I'm a bit skeptical about this coincidence and I'm wondering if they are exploiting the 1% rule that many new investors hear about on BP and other REI podcasts and websites. Perhaps the property could achieve a 1.2% rent-to-value, but the turnkey company sells it for another $3,000 more because it hits the 1% rule exactly and that is the demand driver? Of course, an appraisal can keep them honest, so my next question is:

Does anyone have experience getting an appraisal on a turnkey product and it appraises for less than the sales price? Did you use your own appraiser or the one the turnkey company recommended you use? What happened?