They operate in Houston, TX., and Albuquerque, NM. 

Turnkey companies usually handle buying and renovating the property, then partner with a local third-party management company to handle day-to-day operations.

This question is definitely very location dependent - licensing across state-lines is a tricky thing to navigate so depending on the size of the lender they may operate in one metropolis or all over the country.

@Kyle Kline“Investing for equity and not cash flow” doesn’t mean “buy properties that don’t cash flow.”To me, invest for equity not cash flow means that the PRIMARY reason to invest is for equity growth and an increase in net worth and NOT cash flow.I’ve been investing for over 40 years and while cash flow is important, it’s not why invest.A property must be self supporting ie produce enough cash flow to cover debt service, operational expenses including repairs and replacements.

He said that he did adjust the cost basis..and that only depreciation can be adjusted, not operating cost and that my NJ cost basis is now lower.  

I hope you are asking two separate unrelated questions, because there's no point in doing cost segregation for properties held inside your self-directed solo 401k, save for some very rare exceptions.Some of the Bigger Pockets experts who operate reputable costs segregation companies are @Bernard Reisz, @Yonah Weiss and @Julio GonzalezSome of the Bigger Pockets experts who offer Solo 401k administrator services are @Dmitriy Fomichenko, again @Bernard Reisz and @Brian EastmanReach out to them and see if they can help.

This is an owner operated venture.

Its generally retail medical operators, so we include things like the market dynamics for our use and why statistically the market and location of the site will be viable form a business case standpoint, and speak to how the startup has enlisted the help of an EMR or other such consultant to help in their general rampup and ability to bill/get insurance contracts.  

The team of Charissa Napoles the realtor and Robert Mincey at operation tango yankee inc have told me this second property was just a full rehab.

Some can execute on the lower tier assets and transition out but it is a far more difficult asset class to operate and exit than most realize and many fail.