All Forum Posts by: Cory M.

I just got billed $365 by my property manager for replacing a toilet fill valve and supply line. That seems a bit high to me, but I figured I should check before I get too upset about it. Does anyone local to Memphis know what the going rate for simple repairs like that should be? 

Checking Home Depot, it looks like parts would be $30 or less. That leaves $335 for labor and the property manager's fees. Is it reasonable for me to ask the property manager for a breakdown of parts/labor costs?

Hey Arron, I'm sorry for your negative experience! Can I ask if you've been using a property manager and what circumstances led to the properties being mostly vacant? One way to turn these properties around might just be to get them tenanted with a good manager in place.

@Kevin Siedlecki Sorry I'm late in responding. We were on the waiting list with MidSouth Home Buyers. That was taking a while so we started looking on our own with the help of CrestCore Realty and are now under contract to buy a house. That meant having to do more work, but I think it will be a more profitable deal in the long term. It looks like we'll walk into the deal with about $20k of equity and the house already has a tenant.

It probably depends somewhat on your total financial situation. If you have a super high net worth or income, perhaps your reserves could be lower. Or vice versa.

I'm about to purchase my first property (single family home). It is already leased and cashflowing, all new major systems except the roof which is 4 years old. I plan to start with about $5,000 in reserves and save up to around $10,000 over time.

@Joseph Bui @Clare Pitcher We're planning for our first deal to be in Memphis. But we're pretty open to other places long-term.

Quote from @Brandon Croucier:

Looks like you have a solid plan, compound interest will take care of the rest.

Can i ask what mortgage product you intend on going with?

Conventional versus non-qm products have similar pricing, but restrictions on DTI and capped number of properties will limit how far one can go using conventional.

We currently have no debt, excellent credit and are pre-approved for a conventional mortgage on the first property. Unless there is a compelling reason to do something different, I'd like to use conventional mortgages for as many as we can.

I've been lurking and replying on a few posts for a few weeks. So far BP has been super helpful. I figured I should finally introduce myself.

I'm new to real estate but not to investing in general. I've invested in stocks, traded options, and even a bit of crypto for years. I've always intended to invest in real estate (long term rentals) but never found the perfect deal. I decided that now is the time to finally jump in after realizing that all the okay houses I've passed on over the years would be great if I could buy them at the same price/rate today. Basically, an okay deal now is better than a great deal in another few years.

I live with my family overseas in a relatively unstable part of the world. I love my job. You couldn't pay me to leave it. But it doesn't leave me much time for other things. For that reason I've decided to go the turnkey route on my first property. I know it likely lowers the profit margins. That's a tradeoff I'm happy to make right now.

So far we have enough saved for a down payment (possibly 2), we've chosen a turnkey provider and market, and we've lined up funding for the first deal. I've made a detailed list of what I'm looking for in our first property. Sometime in the next month or 2 we plan to choose the exact property.

Short-term goal: Buy a turnkey single family or duplex which cashflows even after accounting for management and saving for future vacancies, maintenance and capex. Basically, I'm happy with a good deal, even if it's not a great deal.

Mid-term goal: Do it again in a year. If the first property is single family, I definitely want to try a duplex for the 2nd. We already have most of the 2nd down payment saved, but would like to be conservative for now and keep more in reserves.

Longer-term goal: Scale steadily but conservatively. Either try to buy more doors per year or "better" doors each year. At some (undetermined) number of doors, we'd likely start to use some cashflow to pay down the smallest loan. I know debt can help you scale faster. But I also like the idea of not having too much debt and owning things free and clear. It's okay with me if that limits my growth. I'm already pretty content.

Let me know if you all have any feedback or suggestions.

@Charles D. Thanks for your response! I'll check those 2 out.

Quick Question: What banks would you recommend to US citizens who live overseas? (I'm thinking for general banking, checking, savings, etc.)

I've been banking with Chase, and am having a nightmare of a time closing CDs upon maturity. You can't do it online. They won't do it via email. To do it over the phone you have to call within a certain time window after expiration. When I have called, the customer service hasn't been able to help me. That, combined with very low rates on their accounts makes me think it is time to look for a better bank. Who do you all recommend? (In case it opens other options, I am a USMC veteran.)

Thanks!

Cory

Quote from @John Fleming:

Quote from @Cory M.:

Thanks @John Fleming. I'll check it out

 Also, I did a call yesterday with Todd Crippen from Turnkey Property Group. So if you're looking at Kansas City I'd recommend speaking with him as well. 

 @John Fleming I'll look them up. Do you mind sharing what drew you to them?