All Forum Posts by: Dean H.

I had visions when I started investing out of state of spreading it out over Cleveland, Memphis, and Kansas City. Fate landed the first investment in Memphis. I met a great property manager that came with the first investment, continued the relationship and have grown my portfolio there since. my thoughts now are to expand holdings there to 25-30 SFR for ease of management. Maybe at that point I'll do some KC,MO so when I fly back I can catch both in a week.

My opinion is if you invest out of state it is ALL ABOUT MANAGEMENT and TEAMWORK the rest will fall into place if you let it.

I'm a wee bit old fashioned but I like to have at least the availability of funds lined up before I purchase project properties. That being said everyone has there own ship to steer

You already manage a couple of properties, why not expand on that and start your own company?

For what its worth I agree with Curt. A 2% rent increase won't even cover the revenue lost on the unit already vacated let alone any others ( it is winter ) I don't understand why investors seem in a hurry to evict or price out exiting tenants just to spend money and time to often achieve the same net return. Slow down and run some numbers, update and increase one at a time when tenant moves on, make the improvements out of cash flow, improve outside if bored and need a project.

 That 15 bucks just might have priced you higher than one down the street, did you check the rates in the area. Those 20-30 year olds can still move in one pickup load and be drinking beer in a hour!!!!

My wife and I do buy and hold in Memphis from 2245 miles away.

That being said, I would,

1. Vet and chose a property manager BEFORE buying anything.

2. Do as much research and diligence as possible.

3. Be mentally capable to trust the decisions made by others on your behalf.

4. Remember it is not like the west coast

Go forth and prosper....................with caution

@Calvin Ruth I was thinking the same thing Calvin, but don't forget to take the vacation with what you have saved in time, attorneys fees, yearly LLC fees, additional bookkeeping fees, additional insurance costs, more, more.

A couple of us Oregon boys are making the Memphis journey Feb 7th thru 10th. While we both currently own multiple long term hold rentals in Memphis we are looking to hand shake some of the folks that have helped put our successful programs together. Our plan is to join MIG since we will be in town during there Feb meeting and meet up with a few of the local pros then  [kind of a sneak out of the brush and introduce our self's to learn from the pro's what we are doing wrong thing] We will also take new looks at our holdings and shake the trees to see if we can find a few more. Looking forward to learning and listening.

Are you sure? When I'm in this situation I  personally leave them in place unless doing major overhaul. Enjoy the cash flow and fix them up as they move out and raise rents then. Sometimes the best revenue is what your already getting.

@Kevin Atom, Second question could be WHY, some states registration fees could be as high as the net cash flow off of a single property for a couple months. Without significant assets to protect I'm a firm believer that a good insurance policy is better in the beginning than the additional costs of time and money associated with a LLC.

My wife and I do this all wrong, we sold a couple of cars and a truck we didn't need and paid cash for a "C" rental duplex. We were lucky and expenses were low and it cash flowed into another cash purchase of a single family "C" rental. A few years have passed and it now is a nice group of "B & C " properties with no debt. We both work our butts off everyday with the goal of someday enjoying the spoils of our labors. I look constantly for deals that will work for us. When i'm bored and short on cash I pick up a couple of tax liens for sport. Maybe someday we will play by the BRRR rules but this works for us