All Forum Posts by: Damon Albers

Good advice but I wouldn't say the 3 bdrm 2 bath 2 car garage is in a bad or dangerous neighborhood. Maybe the other property is?

If I can get a decent price for them, I think I'm out. I was sold on the idea that I could be a "passive" investor. I'm learning that's not the case, at least for me, and I think Memphis Investment Properties (M.I.P) is probably one of the better (truly) Turnkey companies. 

Thx for all the input. My first property has appreciated from $138,100 to around $185,000 since I bought it 3 yrs ago. The second one is close to what I paid for it. 

I think I'll follow several members advice and sell them both. 

David B. - 

The address of the 3 bdrm 2 bath, garage is 4655 Royal View Drive, Memphis TN 38128

The address of the 3 bdrm 1 bath, driveway parking is 3082 Parker Rd., Memphis TN 38109

Maybe I should sell. I get call daily in investors trying to buy them. Especially the 3 bdrm 2 bath with garage property. 

M.I.P. has properties in A+,A, A-,B+,B,B-,C+,C based on number of renters and other factors. It's M.I.P.'s rating system. My properties are in B+ areas.

I see in writing what they say they use to screen tenants and it looks as good as any I've seen. 

I agree with you on not being able to collect on judgements. Not sure why any renter would abide by a lease if they are not enforceable. 

 

Hi, 

I have two houses that I purchased from Memphis Investment Properties (M.I.P.) who still manage them. Property one is a 3 bdrm 2 bath with a garage that rents for $1,350 and property two is a 3 bdrm 1 bath, driveway parking, that rents for $950.

Before I bought the houses, M.I.P., provided a proforma on each property. They allowed in the proforma for a 3% maintenance. The proforma's would have been accurate but, what they didn't allow for, is the turnover cost between renters that left excessive damage. Also, the vacancy rate was understated.  

My first house had a tenant in it when I bought the house and they just up and left and left the house in rough shape. Then my second house which was freshly turned had a tenant that up and left after a couple of months and caused excessive damage. 

On the first property, we sued and won a judgement of over $6,000 but I have not seen a penny and it's been over 18 months since the judgement. We sued on the second home but don't have a ruling yet. Now my first property currently has a tenant that is not paying rent, so we started the eviction process. I expect that I may have excessive damage on this home as well. 

Out of 4 tenants, only one has abided by the lease. 

Am I just unlucky or is this  what I can expect in this market? 

I was really excited to be a real estate investor but having 3 out of 4 tenants break leases and cause excessive property damage as well as unexpected turnover cost from excessive damage, is making want to get out.

Thank you for your any input you would like to share. 

Damon

Please explain the difference between having the purchase price reduced by $2,180 and getting a seller credit. I don't understand the benefit of the seller credit over the reduced purchase price. 

I'm here to learn :)

Thank you!

Damon

I'm working with a seller and they are offering a price reduction or to pay for points. 

The price is $109,900 so they will reduce that price by 2% which is $2,180 to arrive at $107,720, or they will pay a 2% discount fee to lower my rate from 6.5% to 6% on a 30 year conventional with a 25% down payment. 

Thank you!

Damon

Update: A principal from the PM just assured me that the security deposit and any future monies collected from the previous tenant for damages would come to me :)

Thanks to everyone who chimed in on this.

Damon