They seem legit insofar as everything seems legal and kosher.  

Of course it this becomes an issue for the property management company, they may chose to stop managing the property.- The owners don't share any of the equity growth with the management company.Drawbacks of Turnkey properties- They are usually purchased at market value (or sometimes just a little bit above) so that after paying closing costs the investor who purchased the turnkey investment has a lower net worth than before the purchase.- There is no discount or created equity over and above the amount that is used as the down payment for the home.- The management company charges a management fee of 10% - 15% which can be a little higher than average property management companies, but that cost may be offset by higher quality of services.- The management company also charges for other services such as fee for coordinating maintenance and repairs, and turnover and releasing.

If the purchase is done in cash, as you mentioned, they’d have more flexibility, but they’ll still want to carefully consider the tax and legal implications of the subsequent sales.I hope this helps, and good luck with your client’s deal!

Once you’ve got a little experience under your belt then you can attempt buildings that need more renovations/repairs or have had management issues.

Renovations were quite a bit more than we had expected due to more issues than we were aware of.

If funding is an issue, you do have some options.

There are cheaper one’s in D/F areas but I would be careful as those can create a laundry list of additional issues.

This is something their screening probably would have caught, or their system would have a legal procedure to deal with it.

Tax and Legal ConsiderationsUnderstand the tax implications and legal responsibilities associated with rental income.

This issue, while easy to solve, only came up at the end of the process.