Basic questions on Turnkey investing
Hi all, I'm new to out-of-state investing and looking at Turnkey as a way to start the process. Turnkey ROI seems good compared to what I can get in my local market (San Jose, CA). One thing I have noticed is that in some markets the offered price for Turnkey investment seems to be much higher than market estimates from Zillow or other sites. Certainly there is room for error on any market pricing tool, but several questions for me remain:
1) How can I get a better understanding of the real value of these turnkey properties to make sure I am not paying too much?
2) Are turnkey prices negotiated similar to regular buyer-seller market, or it is generally a fixed price from the provider?
3) In cases where appraised value is lower than the asking price is financing still possible? I would expected that rehab should be reflected in the appraisal value, but other factors such as tenant placement which are valuable to me as an investor, would not show up in the appraisal report. I might be willing to pay more than the appraised value, but I do not want to pay cash and give up leverage. How are other people dealing with this?
Thanks for the insight!