All Forum Posts by: Dean H.

All,

This is simple and not worth the discussion as its gone above. I own a decent size portfolio of professionally managed B- to C- properties in Memphis.

In my crazy little world of out of state investing its simple math. ONCE YOU GET THE PROPERTY STABILIZED YOU WILL NET 1/2 OF THE GROSS RENT.  If you are crazy enough to carry debt on them that comes out of your half. Notice above I said stabilized because what is considered a rehab in the real world is wasting bucks  on the streets I work. 

Crabby Old Man having a bit of fun

Chis

Are you sure all bets are not still off?

My Memphis tenants have been doing a great job of staying current but they had the $1200 pandemic check and savings, if any to work with.

My fear is the next wave of Covid and tenants ability to deal with it

Dean

@Erica J 

38109 Whitehaven TN

$7125  rents for $575 per month 2 tenants over 5 years. 

@Nawzad Babiry

$7125  rents for $575 per month 2 tenants over 5 years. 

@Jerry 

@Jerry Lucker When I seen the headline I thought it was Oregon. These crazy west coast rules are doing the exact opposite that the politicos intend. Soon no one will build rental housing at all let alone anything remotely affordable to the very people they are trying to help.

Portland councilor proposed a couple days ago requiring new construction to include a " extended public rest area " add that into the budget for the west coast pursuit of housing for the masses.

Grumpy

@Kenny Berrios

Kenny, recessions come and go in a cycle. As @Taylor L. mentioned above the best coarse of action is to always invest with the mindset that you will always have to survive a recession, the real worry is how long and how deep it will be.

Personally, for the way I invest a mild recession would probably just be a buying opportunity. Things are a little to "Hot" right now. 

The economy will do what it may, keep yourself in a position to survive or prosper 

 @Robert Goldman

Well Robert, I'm just a small tater is the big garden that is bigger pockets but I've got a entry for this contest.

I was told about a property that was going to be let go for taxes in 6 weeks.

I approached the owner expressing interest in purchasing it.

Owner stated that the taxes were more than it was worth.

I told him I'd pay for the title work if he gave it to me.

He did.

I sent a crew in at closing to clean it out and mow the lawn.

Posted it for rent, rented in 48 hours and got first and last which paid closing costs.

Worked out a payment plan with county for past due taxes.

Collected rent for 19 months and applied all net proceeds to tax debt.

Paid off in full in 19 months. NO DEBT

This was 55 months ago and it has paid me rent all but 2 months at a tenant change.

This is how you buy a house for nothing out of pocket ! 

Yes it is in a C neighborhood but when I get paid every month the cash spends the same.

Dog gone it @Charlie Moore all this time I've been telling my wife if we got to 20 units we would be on easy street and now you come along and move the goal posts. LOL

@Ivan Guillen

We kind of play like @John Teachout above. We have most of our residential rentals in the Memphis, Tn area. Duplexes and above in Memphis are taxed as commercial so that hit is nearly double. We have also found, at least in Memphis, that there are so many single family rentals available to tenants that most qualified, responsible ones just want single family. Over the years we have migrated to smaller 2 and 3 bedroom homes to keep the folks from dragging to many family members in. Give me the opportunity to by a little " Granny " cottage and i'm all in. Another factor is flexibility, I like the idea of being able to buy or sell what I want, when I want, for what ever reason I want. If I had a large complex that would prove difficult.

@James Wise

Yep, she was great. I invest in Memphis and it is the same thru out the mid west in these neighborhoods. Once you learn to not expect different your on your way to success!!!

I'm from Oregon so your reference to our tenant laws was spot on. I find it crazy that the powers to be think that pouring this BS on is helping house those that need it most. All my affordable housing builder buddies  are flocking out of here.