I wrote a lengthy blog on this recently; the bottom line is that investing is about control, not instant cash.

Instant value add if the community will support it.

I can say I would need a much larger pay day to spend that kind of money.Do you have a list of buyers (you will need these to wholesale)?

I got a house sub 2 this year, I only did it due to instant equity, ok cash flow and I think I can refi should I get called. 

@AlexGallardo FHA 203k Advantages: Creation of instant equity3.5.% down of the purchase price and the rehab costsCan be used for primary residence with 1-4 units (could also be looked at as a disadvantage)  When using 2-4 unit property, projected income from other units can be used to qualify 6 months' worth of mortgage payments can be rolled into the renovation budget if the house is deemed uninhabitable by the HUD consultantCredit scores can go down to 600s (lender dependent) DTI can go to as high as automated underwriting system allows (typically 56.9%)Allows you to buy a property in any conditionCan use it to fix minor repairs all the way up to basically a full tear-downFHA 203k Disadvantages: Interest rates tend to be about .25-.5 higher than regular FHA loan Additional costs include HUD consultant fee, inspections, title updates, and supplemental origination fee (Cost of doing business, but this is built this into your numbers, so it's no big deal)Must use a licensed General Contractor for a full 203k or up to 3 specialized contractors on the limited 203k Must hold onto the property for 1 year and live in it. 

Andrew to be fair I think the buy a house with instant equity ship has sailed unless they are like you and these investor reside there have the ability to source pay cash hire their own crews etc and thereby EARN equity..

But is it unrealistic to think that a new investor could buy a property from a turnkey company and have instant equity in a house?

They listed every property for 40-45k lower than the zestimate making it to be instant equity even if one doesn't get a lower price than the asking price.9 - SFH and then Multi?

Also, each brokerage and MLS chooses whether or not to syndicate to Zillow and I know many that have removed their feeds following Zillow's "instant offers" decision.

It works fine, but on another unit I have the tenants pay me electronically though BOA and its instant, instead of waiting the 5 days for the Cozy payment to process.