@Harish PasupuletiTurnkey properties are attractive due to their low barrier to entry, especially for new investors, but they also have the extreme negative of eliminating your ability to build immediate equity through reno.

Right now I'm looking at a possible 10% return but could be much less or negative if the market turns do you have any thoughts?

Also, focus on 2 years of job/income stability.Class D Properties:Cashflow vs Appreciation: Typically, all cashflow with little, maybe even negative, relative rent & value appreciationVacancy Est: 20%+ should be used to cover nonpayment, evictions & damages.Tenant Pool: majority will have FICO scores under 560 (almost 30% probability of default), little to no good tradelines, lots of collections & chargeoffs, recent evictions.

Also, focus on 2 years of job/income stability.Class D Properties:Cashflow vs Appreciation: Typically, all cashflow with little, maybe even negative, relative rent & value appreciationVacancy Est: 20%+ should be used to cover nonpayment, evictions & damages.Tenant Pool: majority will have FICO scores under 560 (almost 30% probability of default), little to no good tradelines, lots of collections & chargeoffs, recent evictions.

Focusing just on appreciation causes people to take on negative cashflow situations, gambling that the market will eventually save them before they run out of cash.

I still would never buy negative cashflow but will take low first year returns if it's in a good area as the future growth is where the real money is. 

This is because I find the hold after the refinance in my market has negative cash flow so the properties that were previously good BRRRR candidates are now better flips than BRRRR (assuming you do not want your profit to decline each month after the refinance).   

One of the main scenarios where it does in fact make sense is your example - it might be negatively cash flowing in year 1 - but start cash flowing positively in years 2, 3 and then down the road years 5, 6, 7 (all the way to 30 is technically possible if no refi or sale) the DSCR can explode quite a bit higherAlso sharing links here to 11 articles published here on BiggerPockets all about DSCR Loans, hope these help as well!

Daniel needs to disassociate himself from Jonathan.Hence, looking for alternative recommendations for my next projects.Sorry to hear about your negative experience with Jonathan. 

Also, focus on 2 years of job/income stability.Class D Properties:Cashflow vs Appreciation: Typically, all cashflow with little, maybe even negative, relative rent & value appreciationVacancy Est: 20%+ should be used to cover nonpayment, evictions & damages.Tenant Pool: majority will have FICO scores under 560 (almost 30% probability of default), little to no good tradelines, lots of collections & chargeoffs, recent evictions.