All Forum Posts by: David Cook

@Eoin Maher

Everything I have is in north central Jackson.  However, I wouldn't be opposed to buying in the Lambuth/hospital area.  Like Memphis Jackson has very nice areas and areas that I wouldn't feel comfortable investing.  The deals I've made haven't been absolutely incredible but the numbers were solid and nothing I've bought has put me out of pocket yet.  The biggest problem I run into is deal flow.  Right now I'd love to buy another property but nothing that meets my specific criteria has come on the market in the past few months.  I have strict rules about what neighborhoods I'll buy in and what kind of properties I want so that's not necessarily surprising but it is something to consider.

Hello Eoin,

I'm also a multifamily investor in Jackson.  Best of luck to you, let me know if I can help you out in any way.

Thanks,

David

Hello BP!

A couple of months ago I chose not to renew a problem tenant's lease in one of my multifamily units.  He owes roughly $2,000 in unpaid rent, late charges, and for damage to the property. 

The manager has left several messages asking him to remove his car from the lot and I'm sure I could have the car impounded.  I'm curious if there is a legal means by which I could seize the car and sell it to cover some of the money this tenant owes me?

Does anyone have any experience with this? Thanks in advance!

Hey Lance,

It looks like we have the same market and niche.  I use Jon Murray Haltom with Century 21. He is also a multifamily investor. In Milan and Medina I have used Bradley Arnold. They are both very good.

Good luck!

In addition to being an investor I also work in the pest control industry. The shortcoming of heat treatments is that it can take up to an hour or more for the unit to reach a lethal heat. During that time the bed bugs seek shelter in wall voids and neighboring units. I'd speak to the people that live either side of your tenant as well as directly above and below. In addition I'd consider hiring the pest control company to come out to put down more residual product after the initial treatment as a preventive measure. I'd argue that this should cost less than the full $925, although that's pretty inexpensive for a bed bug treatment.

@Jake Kozul That's not unusual at all actually. In addition to being a RE investor I work in pest control.  Bed bugs have become a tremendous nationwide problem.  Depending on your tenant base I doubt the tenant will be able to afford treatment if an infestation does occur.  Over the counter products aren't effective and treatment can easily cost hundreds of dollars a room.  It's not a bad provision to have in your lease for your own protection though.  There have been some fairly tremendous lawsuits and subsequent settlements by property managements companies who failed to address bed bug infestations in their buildings.

As far as getting the units checked between tenants I would be careful.  I would only do this if you are dealing with a reputable pest control company you feel confident won't mislead you.  An inspection might cost in the neighborhood of $25 while treatment might cost $1000.  You can see the incentive for a dishonest business person to mislead a customer.  There are bed bug detection services that use a trainer and a dog to sniff for the presence of bed bugs.  Some of these teams are remarkably accurate while others are not.

@Whit Hill

Welcome to BP

I'm not sure I feel comfortable answering your questions regarding the effects of the LLC on your income. However if you plan to invest in real estate and especially if you plan to buy and hold I think you will want a LLC very soon anyway. Perhaps a 1031 exchange would also eliminate the income implications of the Michigan Home''s sale.

I've had similar thoughts, if you decide to franchise let me know ; ).  I talked to a local investor the other day who was building a residence onto the side of his office at his self storage location.  He was hoping to recruit a sheriff's deputy or local police officer to live there for free in exchange for keeping an eye on the place on evenings and weekends.  I was suprised security was such a concern considering it's location and the fencing but maybe he intended it as more of a marketing tool.  I looked at another location that was for sale in my area.  It was in a less prime location and was 50% vacant.  

I have not invested with them but their reputation is excellent.  I grew up in the Memphis area and you could likely find better deals if you wanted to take the time to learn the market and shop around.  If you aren't interested in learning the market or concerned you might make a costly mistake they are an excellent option.  Their property management services are also highly regarded from what I understand. That's worth its weight in gold if you are trying to operate from out of state in my opinion.  So you know I'm not affiliated with Memphis Invest in any way.  

Buy low (like you did) and sell high (where you are).