Hi Dan,
I also live in CA and looking to invest in Memphis. I have interviewed SEVERAL turnkey companies and received inventory from them, I have to agree that the homes seem to be overpriced. I knew from the start that I would be paying for the renovations, but for some of the areas I was looking to invest in, I couldn't find comps that would support the purchase price. Additionally, the COC return did not look appealing. Each company offered their analysis, but after I analyzed (with my limited knowledge) each deal, the COC return was NOT what their paper returns stated (Most of them did not account for contingencies). I am a busy mom of 3, wife, and full time professional so turn key is sooooo appealing to me. But I haven't found a deal that makes sense to me yet. I will continue my search and in the meantime attempt to build a team with move in ready properties in Memphis that I can purchase. I am still open to Turnkey properties, but I am determined not to get too excited to buy something that I don't fully analyze the entire situation.
FYI...I did ask a couple of turn key companies if the appraisal came back lower than the asking price are they willing to negotiate and one said yes and one basically said NO. Of course the one that said NO, I crossed off my list immediately. Good Luck. I am looking forward to hearing about your adventure. I hope we are swapping stories within the next 3-6 months about our properties that we have acquired.
