@Chris Clothier and @Steve King,
Chris, I think you raised some valid points about turnkey operators. I've been in the business for many years and I can probably count on one hand, how many "true" TK properties I've ran across, for the rental market. I find properties where the seller states they're turn key and they aren't. They may only need a coat of paint or a few new fixtures, but that's NOT TK. So I would caution new investors, if you're told something is actually turn key, I'd check it out thoroughly. To me, a TK property needs no work at all. It's "ready to go". For the rental market, they're very difficult to find.
The other issue I have is with TK properties pricing. Someone mentioned that if a TK property is selling for $50k, it was probably purchased for $10k. I couldn't disagree more. We buy properties for $30k and above and sell them for around $50k, ready to go. The investor pays for the rehab, so when it's all said and done, they're in it for no more than $50k. However, this scenario is only valid for one suburb in Illinois. No, it's not the hood either. It's an area where rents are going for $950- $1350 a month. It's just a small pocket that creates excellent cash on cash return. My point is, that every area in the country is different. Just because a property is selling for $50k, doesn't always mean it's a terrible deal. So I think it's important to take a hard look at where you're buying and what you're getting for your money.
