I dont understand the Turnkey game

[Micah Mcarthur]

I am just starting to explore the turnkey option of investing, and right away, I am having serious doubts, because it doesnt make sense.  It sounds too good ....

If a turnkey outfit buys a distressed property at a discount, puts money into it, rents it, and manages the property, exactly how and why are they going to sell it to me at a price that allows me to make a profit?

Why wouldnt they just hold the property, and all the equity and cashflow with it.    What am I missing?   

There was a post a few days ago, and someone was talking about $20K instant equity, because the turnkey company was selling the property below market?   How does that even make sense?   

[David Song]

The TK provider flip the house to OOS investors, to get a higher profit. They sell the TK at higher prices than on open market to local people.

This is a scam targeting OOS, especially CA people. You lose money at the time of buying.