Combine selling costs and a discount and the fact that the turnkey was probably bought at retail or even slightly above and there probably is no capital gain or very little at the end of the day.I just don't see the scalability or the long term profitably in most turnkey product.  

@Andres Jaramillo a good turnkey rental costs 30k and i am thinking after a few years you are going to have three of them and in 5 years you are going to see the writing on the wall that these things aren't scalable nor will they get you the passive cashflow you are looking for (5k+).

(I live in upstate SC)I know I'm going to have to be comfortable trusting a property manager for aNY project for it to be scalable, but  the prospects of having one of the tenants in a turnaround park watch over an entire asset while I'm away seems nuts, at least in my brain.

Suppose you could also be purchasing everything for cash but the idea of building a scalable portfolio without using banks is not realistic, at least in MN cities.Flipping is not the hardest way to make money, you just have to know what you are doing and leverage other people like most businesses. 

We do not need to carry a large set of keys around with us to ensure we have access to all units.Auto pilot and scalable.

I would have also gone this route.I have considered jumping into commercial residential and like the scalability but I will not like the commercial loans. 

Easiest and most scalable is the 3rd option. 

So yes, it's far more scalable, and way more effective too.  

Not only is it not scalable but if I was to analyze my profit by going off the number of hours I've spent fixing this place up it would be the worst hourly rate I've had in my life.

I guess I am interested to hear from people who either have experience managing or owning yourself more than 10 units and can understand my question from a scalability perspective.