Are turnkeys overpriced?
Hi everyone! I was thinking of buying a turnkey for the first time and was comparing the turnkey prices with Zillow estimates of what the property was worth. The difference is so big! Now Zillow does not know what renovations have been put into the property, right? Also, the property management fee 8-10%, plus 15% maintenance fee - if they call the repairman or something, they tack on 15% to the repairman's bill, plus a yearly fee of $250 or a lease renewal fee of $250, adds up to a lot, especially because you are relying so much on the turnkey management since you are so far away. What do you all think? Are turnkeys overpriced and management fees too high? With these fees and higher prices, how can we make money?
I was looking at Memphis and am thinking of Dallas or Houston but property taxes are too high in Texas. Any thoughts?