Turnkey Investments in 2018

[Keith Meyer]

Good Day BP Community,

I'm looking to see if I can get some pointers from investors who are planning to be active in investing with Turnkey firms in 2018. These are the main points I'm seeking some guidance on:

1. Has there been a noticeable decline in the quality of deals/offerings in the past 1-2 years as home values across the country have generally appreciated?
2. I've heard from several out of state-focused investors recently, their experience has generally been that paying the "premium" for a Turnkey service comes out as a wash financially versus trying to go at it alone in an out of state market. Meaning that the economies of scale and efficiencies provided by the Turnkey operators are worth your while, not having the risk poor Property Management, high turnover tenants, vacancy loss, etc. Are you in agreement with this philosophy?
3. Several Turnkey providers I've been investigating recently are pretty aggressive at addressing deferred maintenance upfront, often opting to replace HVAC and roof which technically may have a few more years of life left. This is stated as being beneficial to the home buyer, as it allows repairs to be financed in the initial purchase, as well as provides for predictable cash flows. Has this been the experience for your Turnkey investments?
4. Which markets are you targeting in 2018, and do you have any Turnkey providers you'd highly recommend? 

Thank you in advance BP Community for your support!

[Caleb Heimsoth]

I bought my first turnkey in August of last year and am buying my second this month. These are both in Memphis. The first one I bought appraised at purchase price and the second I’m buying appraised 4 percent over purchase price.

Both come with new furnace, roof, floors, kitchens, water heater, and the second one had a new AC unit too. There should be very little maintenance on either for the first 3ish Years (minus normal wear and tear at a tenant turnover)

Cash flow is 150-200 a month depending on how you account for maintenance, vacancy etc. CoC should be 8-11 percent.