Making move to Multifamily CA to Memphis TN

[Enrique Hernandez]

Great day to all,

I've just been soaking up all the online youtube videos from Bigger pockets one after the other and I've made the determination to scale my business massively using the multifamily addition into our (wife and I) portfolio. 

A little background: Feel free to scroll down for the main reason of this post...I started out in 2011 trying everything to make my start in real estate but was not successful until 2015 when we purchased our first duplex in Fresno CA. From that deal we bought our next and first fix and flip property the following year. Learned sooo much about the process, took us 2 years to do it all only on weekends and holidays. Once all the work was done we rented the home for a couple years and then sold. Keep in mind that all this time we were living with my parents paying them rent but saving/starving to score our next deal. With the proceeds we later purchased two properties the same month, one with FHA loan 5% down and received a closing credit of $8k plus a $2k check made out to us after closing. Unfortunately I was told they could not give us the full $8k for some reason but credit us $6k which was awesome plus the $2k directly mailed check from the seller. All done paid $9,500 out right and to this day live in one side of the duplex and rent the other. Same month June of 2021 I was offered a great duplex and partnered up with my parents 50/50. Paid $50k down took out an owner financing note for $112,000 and a mortgage for $743/mn Front home rented out for $1,200/mn and back home rented out for $900/mn (currently on the market for sale).

I wanted to give some feedback of our deals prior to digging in. So we have made the decision to move from California to Tennessee. My wife is pregnant in her 6th month, we have an almost 5 year old and so my dilema is I don't want to wait for our second child to arrive before we go into Multifamily. I know the potential of already having the deal under our belt prior to his arrival. I have the knowledge and skills for contractor work as I have been doing handyman work for the past 10 years, as well as learning the roofing trade with a professional company. Finally 3 years ago I made the bold move to go out on my own. I've been bringing in $400k worth of business but its not enough here in California that I keep to really make a difference. I still don't have my contractors license but have been doing the work as one should. Nevertheless, my question is the following: How do I run a proforma correctly so that from a distance I can run numbers and know I have an educated source calculated to make a deal happen and not fall through. I don't fall in love with properties as I would imagine all of you don't but rather look for the most cashflow a property can give us. I will be looking for a rundown multifam to BRRRR. I've never been to Memphis TN and I have looked at all the property using redfin, google maps, and I know I still need to fly out and drive all the neighborhoods.

Anyone reading this that has made purchases of multifam's in the Memphis areas please I would love to learn your process so I too can venture into that realm. Thank you all for your patience and feedback support!