Question regarding "turn-key" companies

[James Hong]

I am a new investor from the Bay Area looking to buy out-of-state properties with cash flow in mind. Some cities I've been looking into are Indy, Memphis, Kansas City, Toledo, and some others as well. 

I've come across many "turn-key" companies that have offered to help guide me through the process, however, I was wondering if anyone has ever had any great experiences doing so? I have heard mixed reviews about these companies and would love some more perspective from people who have been there and done that. Do these companies really have your best interest in mind or are they telling you what you want to hear so they get their properties sold? Any insight would be much appreciated!

Also, if there are any cash flow markets with appreciation upside that I should know about, please feel free to let me know!

[Christian Hutchinson]

Originally posted by @Brent Maxwell:

I have managed and owned many properties in Detroit.  Currently have over 200 properties. Section 8 is no different than cash paying when it comes to risk. There are great Sec 8 tenants. There are lousy cash tenants. 

 I get Section 8 is a reality in some markets.  I take issue with it in Detroit particularly because I view it as the Owner is "taking easy money".  What I have run into, and I'm nowhere the scale of someone like yourself is lots of Detroit Real Estate is addicted to Govt Money.  Which, creates a whole layer of issues.  You seen my posts regarding things I will do with my properties.  I will spend $1-$3K on a property that won't increase its property value on an appraisal.  If its upgrading plumbing/lighting fixtures versus installing proper exterior lighting or fencing, I'll spend it on later versus former. 

Plumbing fixtures can be improved once money rolls in, but a building lacking exterior lighting and physical security will sit, or attract lower quality tenants.

I can't tell you how many people I run into want to get property and plug it into a group home, Section 8, or some sort of Govt Alphabet Program.  Everyone is in it to make money, I respect that but I can't bring problems into a property.

I have a buddy who brought two properties at auction and is working on them.  He wants to put women who are in the Foster Care System who are under 18 who have children in the properties.  Because he talked to some agency that will give him $1200/bed/mo for these females and he bought homes that  have 3-5 bedrooms.  The havoc he is going to release on this neighborhood means nothing to him because he lives in Clinton Twp.  I feel its dirty money, and frankly I think its bad business. I doubt his neighbors at this property will appreciate what is coming their way in the near future.