They operate like a broker (lots of outlets, which means more programs than a bank and often lower rates), but they are the direct lender (which makes them a bit easier to work with and more predictable/reliable compared to a broker). 

@Gary CliseleNote funds are an excellent way for an investor to invest in notes, in a truly passive way, while leveraging the experience, expertise, and relationships of the fund operator.

We operate a PM business in Columbus, Oh.

Rental Property CalculatorResultFor the 20 Years InvestedReturn (IRR):15.76% per yearTotal Profit when Sold:$508,194.80Cash on Cash Return:668.68%Capitalization Rate:6.53%Total Rental Income:$702,846.61Total Mortgage Payments:$333,762.50Total Expenses:$164,736.39Total Net Operating Income:$538,110.22 First Year Income and ExpenseMonthlyAnnualIncome:$2,800.00$33,600.00Mortgage Pay:$1,390.68$16,688.12Vacancy (5%):$140.00$1,680.00Property Tax:$375.00$4,500.00Total Insurance:$75.58$907.00Maintenance Cost:$100.00$1,200.00Other Cost:$41.67$500.00Cash Flow:$677.07$8,124.88Net Operating Income (NOI):$2,067.75$24,813.00

I *DO NOT* have any experience with discussing distressed properties, so maybe take my 2 cents with multiple grains of salt...I DO, however, have experience with cold calling and door knocking for insurance sales, and I am a 10 year veteran 911 operator who has experience with communicating delicately!

Any landlord who has owned and operated property knows exactly what's been done to it and what the issues are. 

I buy and hold, and operate Airbnb's here in Tulsa and in Galveston, TX.

One way that TK operators will get you to overpay is to sell a SFH based on a cap rate.

Many are well represented by sellers & turnkey operators here on BiggerPockets. 

To be honest, as a PM (take it for what it is worth to you), I don't see the PM fees as a major contributor in the 12%+ in additional operating costs, but I am not privy to your Owner statements.