My Experience With Memphis Invest (Turnkey Company)

[Zachary Schimenz]

Hey y'all! So, I recently tried out my first home purchase with a company called Roofstock and had a terrible experience.

This is round number 2!! Going with a company called Memphis Invest. They have a TON of good reviews so I'm going with them mostly based off of that.

I wanted to start this thread to show you my actual numbers on the house I'm buying. With Roofstock I felt duped their numbers and the way they do business. There were a lot of numbers weren't just over-exaggerated, they weren't even close. Anyway, Memphis Invest seems to have a reputation for the opposite, being very conservative with their numbers so you know what you're getting.

So far the communication is great, but at the end of the day we'll have to see how the numbers pan out. So going to put the estimates they gave me now. 6 months from now I'll update the thread and let you know the actual numbers that went down to see the comparison. Then going to keep updating it year after year partly just for my own records, but hopefully it can help some of y'all too if you're thinking of investing with them.

Single Family Home in Little Rock, AR
3 bed, 2 bath - 1652 Sq Ft

Price: $149,900
Down Payment (20%): $29,980
Loan Amount (30 year): $119,920
Closing Costs (based on my estimates of 3.5%): $5,247

Monthly Numbers Estimates
Estimated Rent: $1,125
Mortgage (Based on lender's upper estimation of 4.85%): $635
Taxes: $123
Insurance: $44
Vacancy (4%): $45
Repairs (4%): $45
Property Management (10%): $113
First Month's Rent: $94

Total Monthly Revenue: $1,125
Total Monthly Expenses: $1,099
Total Monthly Profit: $26

So.. .couple things.

The house is fully rehabbed (new roof and everything), so that's why the low 4% repairs estimate.

For vacancy, 4% is also low, but according to Memphis Invest their average tenant stays on for 4 to 5 years, so if that's true, 4% is actually an overestimation.

This also doesn't account for depreciation savings on taxes, loan paydown, and appreciation of the house. Also, this is a completely turnkey property and fully managed, so I'm expecting less of a return than if I'd bought a house myself. I own my own business and my time is much better spent working on that than learning the ins and outs of real estate.

Anyway, I'll keep ya updated!