Sometime the turnkey provider does the property management in-house (this was the case with me) and other times they outsource it to a 3rd-party firm.Decide what profit they want for the property, either as a percentage or dollar figure, and market the property at that price -- $80,000 (a $15,000 profit)So in theory, I could have negotiated all the way down to $65,000.01 in order for them to have still turned a profit.

1900s Quadplex (fourplex, 4-unit), (1)2BR/2BA owner-occupied, (3)1BR/1BA, Gross Rent 2640/mo, (2)1yr/(1)Mon2Mon, Electric Separate, Owner pays other utilities, Offer $469k, VA Fund Fee 2.3%, 2.5% rate, 0 down *Currently renting a 2BR/2BA appartment for $1444/moCost AssumptionsPurchase Price$469,000 Land Value (25%)$117,250 Building Value (75%)$351,750 Improvements$0 Closing Costs$14,070 Total Cost $483,070Financing AssumptionsDownpayment0.00%Finance Amt$479,787Downpayment Amt$0Interest Rate2.500%Mortgage (Years)30Mortgage Payment$1,896Cash Outlay$14,070Revenue AssumptionsMonthly Rent$2,640Vacancy Rate3.00%RevenuesRental Income 2,640 Vacancy/Loss Rate3.0%Vacancy/Loss Value(79)Gross Income 2,561ExpensesProperty TaxesAnnual 5,398 InsuranceAnnual 1,956 Maintenance & RepairsAnnual 3,500 Utilities  Annual 3,150 Variable Cost PM(% Income)10%Flood Insurance Annual 1,293Total Expenses 18,370 Net Operating Income (NOI) 12,360Cash FlowNOI (Cash Available) 1,030 Mortgage 1,896 Total Cash Flow(866)CF & ROI (Outsourced Propert Manag.)Annual Cash Flow($10,389)Cash ROI-73.84%Total ROI3.48%CF & ROI (Doing My Own PM)Annual Cash Flow($7,316)Cash ROI-52.00%Total ROI25.32%cap rate2.64%Option to pay $1200(qtr point) to get 2.325 rateIn a desirable Norfolk neighborhood.

In my market most RE photographers start at 149.00 (some are even lower now), with drone as a 50.00 add on and Matterport as a 100.00 add on (plus other add ons they outsource to Boxbrownie). 

I outsourced it through yellowletters.com.

@Kenny McCray  I would spend the time and energy trying to outsource the most time-consuming units. 

As with any multiunit property, you'll need to outsource the property management and security.

The main frustration comes from the fact that in my field (Accounting), most companies are paid based on billable hours, so they want you working 9-5 (or more accurately 8-10 during tax season) on SOMETHING, regardless of your production level and how important that thing is to generating revenue.I'm interested in commission-based work so I can focus on the important few and outsource/eliminate the rest.I want to understand what banks will want to see in order for them to feel comfortable lending to me to invest in real estate despite not having a salaried 9-5.I aim to house-hack one small multifamily per year in Des Moines, Iowa and eventually move up to Mid-size and Large multifamily in the same area. 

Most importantly, it is very HARD to get cash flow for a REMOTE investor if we outsource everything like PM and contractor etc. 

hii am no expert but one thing i know for sure there are deals everywhere.this business is about relationships, go to your local REI meetups and meet investors, that will be a great step for you and your brother, talk with other investors, wholesalers, money lenders, inspectors, contractors and find a title company that knows how to do assignments and work with wholesalers.in wholesaling you have a 4 areas of intrest that you can outsource after you master them1 motivated sellers-pull lists, skiptrace and RVM or text then set apointments.2 sign contracts- first know you numbers, then let the seller tell you what he wants and only then make an offer3 marketing- market like hell!!

If the cash flow is good, and your compelling reason to sell is the pain of long-distance management, outsourcing property management may be your best solution for your capital gains tax issue.If you are determined to sell (not exchange) the property and refuse to pay capital gains or depreciation recapture taxes, then you can only do that by selling at your current tax basis (book value).