Mid South Turnkey Homes. Should I invest with this Memphis turnkey?

[Nida Kazmi]

Hi Guys,

I was connected to this company through Jason Hartman, and have spoken with them and trying to do my due diligence (also contacting local realtors and other similar companies including http://midsouthhomebuyers.com/

Just want to be sure that these guys are reputable. midsouthturnkey.com

Is it worth it to purchase and rehab homes in Memphis still? I am looking at 3/1 or 3/2 priced around $40-70k with rehab 35K with rents at $1100/average a month. I buy the home with agreement that they rehab it, and retain the extra 20% ARV after rehab

Please let me know if youre familiar with Kenny Shaw and MidSouth TurnKey

Thank you!

[Bruce Lynn]

If you are going to buy $75,000 houses in Memphis, you need to go visit them in person.

I don't know anything about these companies, but when it sounds way too good to be true, it normally is.   

While it sounds really good they don't charge a monthly PM fee, they're making money somewhere.  Nobody works for FREE.  Nobody.  Probably they make it up in upcharges on maintenance repairs, or they will keep all your application fees, processing fees, tenant charges,pet fees and charges or make ready or something somewhere.  Maybe there is a breakup fee as well.  Read that PM contract very carefully.

When you go to Memphis, walk not only the property you're interested in, but several of the vacant rentals you choose.  Don't let them choose for you.

Just inspect what you expect....Also I would talk to housing office in Memphis to get a feel of how many people are on the Section 8 waitlist, what kind of rents they pay, what zip codes are they targeting, see if they have any stats about how long tenants stay and average rent.

While a lot of people try to look at google street view to get an idea of the neighborhood, there is no substitute for visiting in person.