So far, the only difference I can see between turnkey and "normal" investing is that when "fraudulent" charges are levied by the "turnkey" provider, the investor must uncover that activity on his own. 

No "check's in the mail" excuses or having to stop by the property and collect it manually.In my rental agreement, I have a $50 late fee that is levied after 5pm on the 5th if the rent is not paid in full.This month is one the first where he actually has to contribute to his rent. 

@Jessica Martin Despite rumblings about this (especially in Ohio) I have never heard of a case where penalties have been levied against someone for wholesaling or bird dogging.

Make sure you use the correct language accepted by the state, on your excise tax affidavit if your particular state collects the tax at time of sale.

@Cole Schlack  I just can't agree with your train of thought when the city council levies fine its a code enforcement action that will be a lien on the property if not paid.. just like you see in many bigger cities were code enforcement tags houses for waste and wrecked cars etc. its a huge issue in most cities I know our city of PDX for sure.And my daughters mother in law is a code endorsement officer in San Jose they have police powers. 

It's always subject to change with new levys of course.  

@Bukka Levy Many end up taking partners and/or using private lenders.

@Jay Levy At only 12 units (assuming these aren't multi-million $ units), you will be burning far more in resources buying/running a software based solution for your budgeting and planning. 

Of course the analysis charge would be added to any fines levied onto the tenants and it's enough of a sting that it would curb repeat offenders. 

If your in a Strata, I have seen Special Levies for major projects that go +50k per owner!