Essentially, Morris Invest wants all-cash purchases on $50,000 houses in C to D neighborhoods. You have no real exit strategy on an investment like this. Take the $50k and use it for a couple of down payments on homes in better areas where you'll actually have the ability to sell the SFR to a family if you want to, not another investor.
I own a home in Franklin, IN, just south of Indy. It's a B+ or so area, with good schools, and a nice smaller town feel. I know I could put this house on the market and recoup my costs right away.
Before I purchased a turnkey home, I talked to about 15 different providers, talked to 10 different property mgmt companies, and analyzed hundreds of turnkey possibilities before making a decision.
My turnkey home is cash flowing about $200/mo for me (which includes 20% for vacancy/capex/repairs and 10% for prop mgmt--from a liquid point of view, I'm really cashflowing closer to $450/mo until I hit some vacancy or repairs).
Yes, you can cash flow with turnkey homes, you just have to know who you're buying from, be confident in the property management, and have ALL the exact numbers in your calculations. And, YOU MUST still have an exit strategy. Clayton's homes are in areas where home ownership is low, and the only other buyers are really other investors.
Don't trust what any turnkey provider says. Do the research yourself. I think you'll find there are far better options that a $50k home in D neighborhoods of Indianapolis.
