All Forum Posts by: Benigno Cunanan

Is this a good deal or not? Memphis, TN 39118 3:2 SFH Built 1970s but full renovation to include roof, HVAC, floors and more costing about $35k in 2015. Currently rented for $915. Market rent is around $950 to $995. Long tern tenant since 2016. Listed for $95k I Offered $78k Countered at $82k today. County website appraisal is $89k Comps are from $69k to $100k Rental income: $915 Vacancy: $70 Cap ex: $70 Repairs:$70 Prop management: $75 Mortgage PiTI: $525 if accepted at $80k with 20% downpayment Cash flow $100 Is this worth it?? First property btw

@Adam Larkin seems like a great deal! Which areas are these properties in? About to go under contract as well for my first rental property in Memphis. Not very good cash flow but close to turnkey.

@Caleb Heimsoth I was also quoted around $6k for closing costs for a $70k property. Seems too high. Is this typical for Memphis at this time?

No matter where I ask I’ve been getting a 6.125% to 6.25% on a 30 year fixed mortgage for Memphis on a $60k to $90k property. Is this the normal rate nowadays or should I continue to look for better rates? I have a 789 credit score.

@Anthony Wick not sure who typically pays for utilities but I put it in as a 7% operating expense. I also put 7% vacancy, 8% each for cap ex and repairs. Then my loan which will cost me 6%... no more room for cash flow..

@Chris Clothier it was in Clarke street close to apple blossom drive. Yes I agree with all of the things you said. This is good education luckily without any monetary consequences. I will do better due diligence next time

@Bjorik Mutize yes she gave me comps of rent and purchase price which supported the $66k offer and $900+ rents. I guess the rent comps weren’t accurate.

@Justin Tahilramani I was able to pull the offer before it was accepted!

Purchasing a home at $66k. Memphis, TN 38115. Initially I thought the rents would be from $850 to $950, thIs was supported by my rentometer analysis, Zillow estimates and my Agent’s comp list of rents around the area. I was almost sure about thIs purchase until I spoke to one of the property managers around the area who knew the area and had a lot of houses managed close to the home I was about to purchase. She said that it would only bring in $650 of rent, and at most $695. My agent found It hard to believe it would only rent for that much and assured me comps suport 800 to 900 rents. This is a 3:2 SFH. The nUMBERS DoNT WORK WITH $700 RENTS. What do I do??

@Russell Brazil thank you and thanks to everyone who responded. It makes sense now, I guess the money I had to invest was only enough to purchase low end rentals so every deal i‘ve been analyzing within my budget really didn’t make sense from a cash flow or appreciation approach.