Thinking about getting started in Memphis

[Account Closed]

Hi everyone.  

I've been living in Memphis for 7 years, 3 as a homeowner in Raleigh.  My finances have stabilized to the point where I can start thinking of acquiring investment property.

My short term goals:

1.  Pay off my principal residence

2.  Acquire 1 single-family home or duplex and hold it as a rental.  (more on this later)

3.  Wait until investment property is at least 50% paid off to even think of acquiring a second.

I like the idea of buying a house or duplex in the neighborhood of 30-50k, which in Memphis typically means the house used to be worth more but has managed to remain occupied through the crash and doesn't need major repair. Those homes are typically in blue-collar working neighborhoods with families.  Sadly, most schools in those areas are not so good, so proper marketing would, in my estimation, rely on making parents aware of other school options (typically charter schools).   This is not a get-rich scheme at all, but a planned incremental method of offering high-quality housing in Memphis.

Long term goals:

1.  Acquire affordable housing and offer it as affordable, high-quality rental property.

2.  Empower tenants with the option of lease purchasing.

3.  Develop a sense of civic involvement and pride of ownership

To explain, I don't want to just offer rental property, but I would like to make the tenants feel like owners by investing them in the property either through civic contribution or by contributing to the maintenance of the property. This ties in with my idea of offering lease purchase opportunities that are offered along with proper training.

My current resources

1. I can conduct research like a friggin' Jedi. Give me an address and I can, within five seconds (literally), have a hypothetical ROI figured that includes the property's assessment, collation of neighboring sales, mortgage payment with current rates, taxes due, etc.

2.  Hypergood credit.

3.  A touch of equity

My current disadvantages

1.  I'm mired in analysis paralysis.  

2.  I'm uncertain of how to acquire funding for homes under 50k.

3.  I don't know how to forecast rental rates.

If there is anyone with similar goals who would like to discuss ideas, I'd be very open to it.

Thanks,
Aaron

[Stephen Akindona]

Hello @Account Closed, I feel like I was in your exact position when I was thinking about getting started, especially as it relates to your analysis paralysis! The only way to overcome that is to be like nike and just do it! 

If you find a deal, analyze it 3 times, look at all angles but limit your self to 3 times. If you feel it is a good deal, post it here on bigger pockets and get some feed back from more seasoned investors. If you get positive feedback, take the plunge, submit an offer and buy!

We all at some point had to do it and it doesn't always pan out perfectly, but I know that there are several other investors who would agree with me, doing it sure beats not!

I would love to chat with you about some of the other strategies you mentioned as well, just reach out if I can be of any assistance to you!

Good Luck