Instead of losing 55k they will probably only end up losing $25,000 - $30,000Long term its not a great cash flow property but with some renovations and addition of a parking slab I think long term appreciation is the big goal here.

These regions offer affordable prices for most investors, with homes that are turnkey—either newly constructed or fully renovated, tenant-ready, and with systems that still have 10+ years of life remaining.

You then might renovate the property, so it's worth, let's say, $150,000 after 12 months.At the end of the first year you have title to a property worth $150,000 which is serving as collateral on promissory note where you owe about $88,600.

Below is some copy & paste info about our methodology:----------------------------------------------------------------------------------------------------------Recommend you first figure out the property Class you want to invest in, THEN figure out the corresponding location to invest in.Property Class will typically dictate the Class of tenant you get, which greatly IMPACTS rental income stability and property maintenance/damage by tenants.If you apply Class A assumptions to a Class B or C purchase, your expectations won’t be met and it may be a financial disaster.If you buy/renovate a property in Class D area to Class A standards, what quality of tenant will you get?

@Kaleb JohnsonRecommend you first figure out the property Class you want to invest in, THEN figure out the corresponding location to invest in.Property Class will typically dictate the Class of tenant you get, which greatly IMPACTS rental income stability and property maintenance/damage by tenants.If you apply Class A assumptions to a Class B or C purchase, your expectations won’t be met and it may be a financial disaster.If you buy/renovate a property in Class D area to Class A standards, what quality of tenant will you get?

@Alex Mull as some with experience in both turnkey and all-in active investing, I can tell you the biggest advantage is saving, time, hassle, and some full-service turnkey companies mitigate your risk by doing the upfront renovations and placing qualified residents while the company still owns the house.

We complete renovated and turned into a successful operation with a current 11% rate cap. 

You get to deduct $5,000 immediately to oversee the project. 

Rents started to come down and I had to leave a lot more money in projects that I was in the middle of.  

If a project is profitable, wouldn’t you rather have some cash flow rather than none?