Do you operate in this area? 

I don't see how a turnkey operation is always looking out for the best interest of their client.

It's the same stuff that I read and was out there 10 years ago.I have operated a successful wholesaling business for over 10 years.  

@Matt SpeerA nice strategy...203ks are powerful if you know how they operate.

Get an attorney to draft an operating agreement for you and make sure that you follow one of the SEC safe harbor provisions.  

This method works for me because my rents cover the cost of paying the loan and operating expenses, plus setting aside 10% of the rents for capital improvements and 5% for repairs.  

Your level of expertise is what I aspire to operate on.

If you are a DC Native, have friends and family local, and know the neighborhoods like the back of your hand... you have a huge value add to any operation. 

There are some really good mentors operating in your part of the country.  

We typically use the following allowances:Revenue:     Vacancy   8 - 10% (even though the vacancy in our areas is running from 4 - 6%).Operating Expenses:Maintenance and repar:  10% (of effective gross revenue)Property Management:   7 - 10% (of effective gross revenue)Reserves:CAPEx reserve:    8 - 10% depending on the age and condition of the property and its major systems.