Is investing in turn-key worth while in the current market
With property prices rising in the recent years, it seems like most turnkey companies cannot provide worthwhile returns. Most of the available properties I have seen recently quote an 8% cash on cash return, but after including vacancy, repairs and cap ex the returns are closer to 3-4% even in the best markets. I know the repairs and cap ex costs will be low in the first few years, but they should be included especially when the cash flow is below $200 a month since any repair/turn over could eat up a year's worth of cash flow.
I guess my question is: Should I keep saving until the market conditions get better and I can get some better deals or buy right now? I know this is a tough question since no one can predict the future and no one knows when prices will drop again, but I just want to get people's thoughts on this.
Note: I live in an expensive market and have little time with family and work to find deals in my area. I also do not have the expertise or the connections to do so here, which is why I am looking at other markets that have better returns.