All Forum Posts by: David Hodge

Thank you all for the replies!  I'll be looking into the areas mentioned.  @Douglas Skipworth thanks for the map!  

What are the negatives to some of these areas?  If demand and price in these areas are similar to what you can find inside Memphis then arent you better off only looking in areas with no Memphis tax?  I know there are more factors at play than just tax but in general it seems like a real benefit to stay outside Memphis and thereby reduce property taxes by about half. I imagine there might be more competition in these areas and therefore higher prices?

Curt, you seem to be up getting work done late at night like me.  No time for sleep! Haha

I didn't realize Raleigh and parts of south east Memphis had no city tax. Is there a map or list of zip codes that I can refer to that'll show whether or not there's city tax in an area?

What are some of the best rental markets in the Memphis area with no city tax? I know Cordova has no city tax but heard it could be hard to rent due to hedge funds turning too many houses into rentals? Also, Millington? Is that a good area? I'm only interested in B properties and for my next purchase I'd like to avoid city taxes since that can really kill the cashflow! Please fill me in!! :)

Thanks for the great info @Mindy Jensen and @James Wise. I wasn't able to listen live but caught it later.  Looking forward to next weeks! :)

Hi @Jermaine McIntosh,

I have not purchased a turnkey property yet but will be closing on my first one tomorrow. It's a SFH in Birmingham. There are a lot of pros and cons but I'd say the major pro is that it's fairly easy for someone who doesn't have a lot of time to be hands on with purchasing, rehabbing and tenanting a property. It is also safer for an inexperienced investor to purchase a property that doesn't require any additional rehab work. If you purchase a fixer upper, you could easily under estimate rehab costs and end up spending more on a property than if you purchased it turnkey.

The major con is that you're typically buying retail.  You aren't going to find an incredible deal from a turnkey company like you might if you search for distressed properties and fix them up yourself (if you're a TK provider and you disagree, please send me you best deals!!)  The work has already been done so it's easy for you but you probably won't have much equity on day one like a more active investor might.  Another con is the potential of getting screwed over by an unethical provider.  This can be avoided by doing your own research.

I am currently buying TK because I work 70+ hours a week and don't have time to be hands on right now.  I do hope to become a more active investor in the future.  I feel that buying some TK properties is a safe way to get my feet wet and hopefully make some decent returns!

Hi @Account Closed

I am new to this as well. I'm currently buying my first property in Birmingham.  I didn't do too much research on Atlanta but from what I understand it's more expensive than Birmingham, in general.  Birmingham has experienced some decline in growth but seems to be on the rise!  Atlanta seems to be a great place to invest as well. It's more expensive but also might be more stable.  Message me if you'd like info on who we are are buying from in Bham.  There are a lot of people willing to take advantage of new investors. Choosing the right people to work with is key.  Again, Im new at this so hopefully you get more insight from others here!

Haha good stuff @Account Closed!  Thank you all for the input.

Thank you both! It's not near any water and only has 1 tree in the front yard and 1 or 2 in the back.  Not much other than that. The inspector made it sound like it was a guarantee we would get termites but maybe he was just trying to make a sale.

Welcome @Warren Doller!  Glad you're digging in and learning about all your options!

Where are the pro TK people? I would like to see a debate on here where the issues are really hashed out. I have never invested in a rental property but will be buying my first couple TK properties very soon. I have read all the arguments for and against turnkey and decided TK is the best fit for me for a few reasons... 1) I work on average 60 hours a week right now and don't have time to search for properties and rehab them. 2) I live in CA. Finding a property that cash flows in CA sounds like a full time job. I'm sure it's possible, but how much more time away from my family will this require? 3) I don't expect amazing returns going this route, but they are still better than the 401k I've been contributing to. My calculations give me an average COC return of 12%. If there is even just 2% of appreciation then since I'm putting 20% down that's a 10% return from appreciation. So I have a total return of 22%. That's significantly more than my 401k which might give me an average return of 6 or 7% after management fees! So even if I'm off a bit somewhere, I'm better off doing this than what I've been doing by buying mutual funds. Please correct me if I'm wrong here! TK may not be the BEST but isn't it better than the alternative?? Even though TK seems to make the most sense for me, it does concern me when I hear things like this. I would love to see a thorough debate on this!