All Forum Posts by: Dean H.

Well I'm figuring on continuing to collect  the cash flow from my debt free rental portfolio, rat holing all the extra cash I can and picking off  some additional properties while the over leveraged in our midst try to figure out where all of the net worth went.

@Luke F.

It's probably a conscientious owner that doesn't want to subject himself or his tenants to a bunch of no money down / grandma will pass soon and I'll inherit money to pay off if you take a zero down contract.

It's simple, make sure your offer is subject to walk thru / inspection and show ability to close. 

Then go take a look 

Mini Split

Buy them,,, then you will know for sure

@Account Closed

Ahh heck Marc, relax and enjoy the fact that you can see stabilization on the horizon. My wife and I went into our mid west investments 4 years ago with the goal of building a nice portfolio of paid for rentals before we retire from our W2 jobs. We have reinvested EVERY DIME of rent since then in additional properties. We were set to "see black" in September so we closed on another SFR last Friday. Maybe March ????

@Candace Taylor

I highly recommend you search back thru the forums that dealt with multi family investing in the Memphis / Shelby county area. Many of them dealt with tenant and tax issues in multi family. The topic has been discussed frequently lately and a lot of good information is available. READ UP.

I have numerous rentals in the area so a simple search of my postings on the subject should get you to the majority of them. I would start over but my fingers are sore from discussing the issue, lol

@Anthony White

I hate pouring water on a nice fire but my advise is to buy a couple nice single family homes in a decent area. With single family you can get decent financing and a much more stable tenant pool. 

I have skin in the game in Memphis and my concern is that you  are just plain paying too much for the property and investing way to much in the rehab. It's hard for me to be so negative but realistically a 15k per door multi in Memphis will be lucky to rent for 400 gross/unit. After property management, city taxes, county taxes, repairs, capex, vacancy, insurance and carrying costs of non conventional money you will have nothing left but a property with limited exit options. 

There is a reason these properties are for sale, they just don't pencil, this isn't east or west coast investing Anthony, this is Memphis.

One more rant, you never mentioned management but please don't have the illusion that you are going to manage multi family in Memphis from California. That being said make sure you have a good manager because many won't take on 2/1 multi in your value range.

I hate being so negative I'm just trying to make sure your really thinking this through 

Hard money for multi family in Memphis could be difficult. Possibly in an excellent part of town with a lot of your skin in the game but Memphis is tough multi family territory especially in sub " a " properties. There are so many single family opportunities for tenants that the tenant pool is marginal. Also the city / county property tax rates on multi family are restrictive to cash flow.

@Vivek Khoche

Vivek,

Oh trust me i wouldn't say I've always bought right, I made some very expensive mistakes along the way but luckily time, and cash flow, cures all wounds. I am all cash in Memphis, sounds crazy but I just don't want to put myself in a position that the rent has to be paid because odds are it won't always be. I work this hard, I spend 2-3 hours a day hunting down houses that work for me along with a 60 hour a week job that helps me buy them. I don't want anyone to think the way I do this that it is passive income, this is hard work to find them, hard work to rehab them, frustrating to manage them, but like I said above it works and I love it.

Richard,

I'm an out of state investor that has 4 single family homes in 38109. I bought all these in dilapidated condition and rehabbed them into rentals. Memphis isn't a " zip code " town and never will be it is block to block and even side of street. I have other properties in Memphis " B - C " areas and it is basically the same city wide in  this class of rentals. I have a great team of people that are the only reason that this is at all possible. This is a crappy way to say this but you need to remember this isn't  "west coast" investing, in my parts of Memphis this is evictions, slow pay, trashed turn overs, poor credit, rent paid in cash, etc. Don't get me wrong, I love it and it has been good for me I just want you to understand that there are reasons the majority on here will say to buy in better areas. I buy solely based on cash flow and do not have a preconceived notion that appreciation will occur. I look for the ugliest house on the block and try to rehab it to be the nicest and hope the neighbors appreciate our work enough to help look after our investment. 

After all that is said i'm closing on another home in 38109 Friday