First time buying in Memphis and using Turnkey Provider

[Jeff Stansberry]

Hi,

I was hoping I could get a second opinion on whether this deal was worth it since I have never purchased out of state before, or with a turnkey provider.

It's located on Theda Avenue in Memphis

Purchase is 53k (was 56k but all cash got reduced) and will refinance later

3 bdrm, 1 bath projected rental is $750

Top to bottom remodel (Room, HVAC, Furnace, Outlets, fixtures, Floor, paint, toilets showers, cabinets)

My questions are:

Is it better to pay higher for a house (80k to 110k) for higher rent and better area and lower Cap Rate?

Versus this, top to bottom remodel for hassle free on a older house and trust property management to screen well?

I realize this might be priced a little high but the rehabbing will even out in the end?

With all of these additions, wise to lower Cap Ex percent to 5%? and keep maintenance at 10%?

Thanks in advance for any help on analyzing this one. 

[James Little]

@Jeff StansberryDoes the 53k include the rehab costs? 

Do you know who is doing your remodel? Verify your turn-key provider.

Do you know about that part of town? (Frayser)

Generally speaking out of state investors and houses in frayser do not mix...