Just for the "Official Record," I am not absolutely 100% anti-turn key strategy. For the RIGHT person, I think it is a phenomenal way to to build wealth. What I am fully against is the average Joe/Jane wanting to be an investor SOO BAD that they see this as the easy way to jump in and and get some points on the board. This is absolutely not what turn key is. It takes LOTS of due diligence and a plane ride (or more) to find the right operator, in the right market, selling good houses that will rent to people with real jobs. Demographics should be looked at. Chamber of Commerces consulted. Population trends pondered over. Area employment considered, etc. I do believe Memphis Invest has been around long enough to be that company. That being said, I don't know much else about them other than my prior business relationship with Kent (which was great) and conversing with Chris here on this site, but I don't believe Kent is that involved in that business. I don't know.
There are LOTS and LOTS of wannabe turn key sellers selling absolute garbage in horrible neighbors. The product is marked up way to high, the rehab subpar and the tenants worse than those that qualified for subprime loans back in 2005. These people prey on inexperienced investors.
If I had a full time job that I really liked and made good money doing it AND I was looking for a way to get some deductions I would absolutely consider doing turn key deals and I have actually done them back when I had a very lucrative 6 figure income, absolutely no overhead and definitely no time to be out shopping for rentals. Upon hearing my tax guy tell me I had a $40,000 quarterly estimated tax payment due soon, I asked what can I do to mitigate the tax robbery I was being a victim to. He said, "Get yourself some real estate." So, I bought some turn key and some new construction out of state. Some was OK. Some was complete garbage. All in all, I don't think it worked out well for me, but I didn't commit to the due diligence I should have before I wrote the checks. Therefore, I speak from experience when I say it is absolutely a risky investment. If a person does not know the market they are buying in he/she will absolutely be clueless if what he/she is buying makes any sense at all.
If turn key appeals to a person, then go for it. Just make sure you check references, look at the history of the operator and don't be to quick to make a decision. It isn't like paying money for a seller to call and the deal is done on the phone now or never. With turn key, time is definitely on the buyer's side.
