Investing in turnkey properties - Pros and Cons

[Harsh Patel]

Hi Everyone, 

I have come across a few turnkey properties out of state (under $100K) that I'm considering investing into. Before I buy, the properties will be appraised so that I know whether they are above market (and by how much). Since these are turnkey, I don't expect them to be offered at any big discounts, but the fact that I'm a new investor (these will be my first purchase), I'm willing to accept that in return of not having to worry about doing any work on these properties since they are on the other end of the country (from where I'm located currently). Plus, these would still generate positive cashflow at their current listing prices.

I wanted to get some opinions on turnkey properties, any other pros or cons.  

Thanks. 

[Jay Hinrichs]

very polarized opinions on this subject.

but generally speaking.

buy at or as close to the median price point for a given MSA do NOT get sucked into low value looks great on paper properties that are in tough to manage neighborhoods and you don't realize it until you own it.

other wise its just like buying any other real estate.

Home inspection....  appraisal  verify rental rates ... check crime and school maps etc.

also keep in mind these assets trade at very stable price points.. so don't get sucked into you have to buy today or it wont be there .. that could be true and you may have to wait a week or two for a new one to pop up.. but don't get sucked into what I have seen others post about Morris invest.. they show a property you call back an hour later they say sorry someone bought it... causing the buyer to irrationally jump at the next one.. classic take away sales tactics employed by that vendor. ( from what others have written about on BP)