ROI on Low Cost Turnkey Properties

[Dave Vona]

Hi, I've been researching real estate investing for the past year and have decided that turnkey is going to be by best path right now. I've looked into a several of the turnkey providers mentioned here on BP as well as on Turnkey Reviews. I notice that the ROI the lower cost homes (<$80K) most of the time have the highest ROI (sometimes 20%+). This ROI is taking into account all of the costs including vacancy, maintenance reserve, taxes, insurance, property management and mortgage. When I look at these numbers I'm inclined to just find several ~$50K properties since that appears to be the best option for cash flow. My question is, what is the downside to buying these properties? Do these properties appreciate more slowly than properties in the $100K and up range? By the way, I'm comparing properties in several different markets - Chicago, Indianapolis, Dallas, Memphis, Birmingham - to name a few.

Thanks,

Dave

[Curt Davis]

don't buy cheap turnkey homes. Though the roi may seem higher, in reality it will be much lower then what you see on paper.  My opinion of cheap is under $60k. 

Good luck