All Forum Posts by: Allison Karrels

@Edward Debbs - thanks for the google maps tips - I didnt know you could look at different point in time!

@Eric Bilderback - I have a home with Memphis Invest - I had to put 25% down because it was my 5th mortgage, otherwise I could have put 20% down.

Purchase price was $92,900, 2 year lease -rents are $895 year one and $915 year two. 

Assuming 25% down 4.75% 30 year financing, Property taxes, insurance, 5% vacancy, 10% repairs/maintenance, 10% property management,  - cap rate is around 6.5%

If you take out vacancy, repairs, maintenance your cap rate is 8.5%

Hope that helps

@Curt Davis - are all your BuyMemphisNow properties managed by Premier or do you have your own property management company as well. 

Thanks :)

I am looking to buy a duplex from ABC Capital and wanted input on an address from any Philadelphia folks out there:  1925 Harrison St. Philadelphia, PA 19124

The math all looks solid - $96,000, total rent $1250 - After 25% down mortgage, vacancy, repairs, maintenance, property management - cash flows $462, 10.61% cap rate.  The purchase price is after a full renovation and tenants are secured.

I don't know the area, but I am willing to drive the 3 hours to check it out further if it has potential - before I did I wondered what people here thought about that specific street or area.  This would be our first duplex and our first major city property.   

Thanks for any insight.

My real estate attorney in Gainesville FL is Carl Johnson - not sure if he can help or not with this.

@JD Peters

@Marina Weinstein

I purchased a house with Memphis Invest - the process was very easy and smooth.  Their communication level is very high - always responding to an email, phone call or text very quickly.   I traveled to Memphis to check them out and do the home inspection prior to closing.  I was content with everything I saw as far as the rehab and neighborhoods.  The price points in Memphis are very investor friendly, the neighborhoods are nice, the cash flow is pretty good.  

I am now working with ABC Capital, via Maverick, looking for a duplex in Philly.  The returns are a little higher here but the risk is higher as well (higher crime, older houses, etc)

Early next year I plan on purchasing another rental with either Memphis Invest or ABC Capital depending on how this year goes.

Good luck in your search and due diligence

Allison

The BRRRR strat should always outperform a A+ turnkey purchase, but you also have to consider the opportunity costs of your effort and time. I don't have a ton of time so I am content with buying solid turnkeys.

Thank you all for your input!

I have an offer from a friend of my father to loan me $25,000 at 5% over 5 years.  The money will be used as a down payment on a duplex I am looking to purchase.  I am financing the remaining 75% with a traditional mortgage company. 

How would you make this a formal loan - Do you just write up a simple promissory note and attach a loan amortization table to it showing what the payments will be over the 5 years.  Perhaps get the promissory note notarized? Is there anything I need to formally file against the property?

When I make the monthly payments should I send a monthly statement or end of year statement - something to prove I have been making the payments?

Thank you for any guidance on this - very new to taking on any private money.

Allison