Hey @Brian Christensen - Welcome to Biggerpockets! Congratulations on finding the site - I think you will find some excellent information and contacts here. I have been in the TK niche for a while so I think I am probably qualified to give you a few of the best arguments against that route to help you get clear with your decision!
First, the word itself means nothing. Turnkey does not mean anything. It is a marketing term that is way over-used today. Right here on BP, you can find posts daily for properties that say Turnkey and there may be 10 different definitions for what each seller considers turnkey. So first and foremost, just know that even in Memphis (or any other city you may consider) the word Turnkey when used to describe a property or a company may not always mean the same thing across the boards. As a buyer it is really important that you break away from the word Turnkey and really pay attention to the details of who you are doing business with. The wrong team can absolutely set you back.
Reading @Jon Holdman 's comments, I would only add that he points out the worst of the worst. I do not know any companies that operate the way he describes, but I know that with any passive investment, especially one that hinges on a shiny, marketing keyword like Turnkey, everything he mentions comes down to the quality of the team you are working with. So I think based on his comments and the fact that Turnkey does not necessarily mean anything, the biggest risk with buying a turnkey property is the integrity of the team.
Next up is value. I would be less concerned as a passive investor with equity as I am with the true net I am making on a property each month and the value that is being provided to me by the company or team I am working with. That value comes at a cost and as a buyer, my real decision comes down to 'am I getting the value I expect for the price I am paying'. For me as a consumer, all of my buying decisions come down to the value I am getting. You place a high value on your time (family and job) and are looking for a solution that allows for income with sacrificing what you value.
So it comes down to finding a team that will give you the best chance to get a consistent and reliable return while providing enough value for the equity and income that you are giving up. As @Curt Davis noted earlier, unless you are a full time investor or have the time and experience to put into the process, it is doubtful that you will save money doing it yourself.
I think from your posts, you already understand the importance of due diligence. If you would like a list of some good questions to ask and some dos and donts for buying out of area, let me know and I would be happy to send them to you.
Buying passive investments is not for everyone and while I do not know companies by name that operate the way Jon Holdman explains, it would be terribly naive for anyone to say that does not happen. It probably happens every day and even here on BP. So your research and your willingness to be patient as you decide who or where and even if you invest, are going to be your best tools to make a good decision.
