All Forum Posts by: David B.

@Chris Lin

Chris, the way I look at it, is it is worth paying a bit more for  high quality PM, IF they are able to find and keep high-quality tenants in your houses for long periods of time.  I think Premier has an average tenancy of 5+ years.  This is huge because turn costs cost big bucks.....Also, I think you need to look at equity growth as your real return.  Forget about cash flow. If you can break even over 5+ years on operations, than your win is the equity growth.  I bet if you look at this, you will see you are beating the stock market.

@Chris Lin

If you were to include Equity growth (from appreciation and mortgage pay-down) what sort of returns would you have?  I would bet they are decent. I think the whole point of holding a leveraged  good quality turnkey from a first-class team like Premier Properties/ REINation is to have your costs covered while your equity grows through a market cycle.  I think if you used leverage than this is what you should expect.  I have 3 houses that Premier has managed over almost  9 years, and they do a great job keeping them rented to very long term tenants.

 Thank you, Susan.   Do you think values in 39212 (SouthJackson) have increased since 2018? ......and how much?

One other thing about investing in Jackson is that I find it hard to track the value of the house that I own there, which I bought in 2018 . Mississippi is a non disclosure state, so the online tools like zillow and realtor.com have a difficult time with valuing it.  And, I can't see what other nearby houses really sold for.  

 Hi Damon,  the Royal View house in 38128 looks decent to me. The house value of around $160K - $175K is just under the median for Shelby County and I think that area only has county property taxes, which is good. I would say "B" or "B-" class. I think you are just having bad luck with tenants on this one.   The 38109 house is in a tougher area.....I would get some advice from local experts on this one.

Based on the rents, I would guess the $1350 house is in a C+ or maybe B- area, and the $950 is in a C- area.

What neighborhoods or zip codes are these in?

Hi, I own just one SFR in a nicer part of South Jackson, which I bought 6 Years ago. My sample size and knowledge is limited, so I hope some local Jackson investors jump in with their advice. My experience with the house has been fine.

The things that I know you should keep on your radar, when you are looking at properties:

1.  Neighborhood.  Out of state investors should stay in the better areas. I would say stay in  North East Jackson amd Pockets of South Jackson and the Suburbs. 

2. Foundation issues. Get the foundation inspected.

3.  Flood areas. There are some areas that have flooded in the past, so look into that. I think the problem is mostly from the Pearl river.

4.  Be aware there are infrastructure issues that affect Jackson involving the water supply, road issues, etc.

Yes. I have purchased 2 houses from them. They are excellent. Great team. Very honest and transparent.  Basically for a good experience as a new out-of area investor, you need to find an excellent team, good growing market, and good product [well renovated or new houses). JWB,  has all of this.  They have a twice weekly show that you should catch, called "not your average investor."

The Median home sale in Shelby County is around $200k. I would recommend buying a house that is renovated in the $200k to $220K range.  Put 40% to 50% down and it should cash flow a little. You will have a better tenant base and longer between turns. This would be a better first investment property. A better first experience. You'll benefit from leveraged appreciation over the next market cycle.  Find good property management.

Chris, if you haven't already, be sure to do due dillegence on the condo HOA:

1. HOA's policy regarding rentals

2. HOA's reserves and condition/age of building/insurance cost that the HOA carries, etc., etc.