St Louis SFH, turnkey investment

[Stacey So]

We are under contract to purchase a SFH in St Louis as rental property from a turnkey provider (Memphis Invest/REI Nation) for $125k. After a low appraisal ($70k, later went up to $90k upon contest), we changed lender and appraisal came back at $108k. Our ROI went from over 10% to around 8%. My questions- 1) how is the St. Louis market doing? We are afraid to go in this much under water and don't know if it's realistic to expect appreciation this quickly to cover the negative equity. 2) Would you walk away? We are out about $2k at this point with 2 appraisals, inspection, termite report, survey etc. Don't even know if we'd be able to walk away without losing the earnest money.