All Forum Posts by: Gary Freidman

on your web site :)

@Jay Hinrichs that is correct but in this case there are no city taxes. The other side of that is that it is also out of the way more than other properties that I know better in more developed areas from when I lived there very early on in life (close to White Station).

I think leasing fees were included in management but I need to make sure. 

@Derrick Craig I was just curious if I was paying too much or if any of the assumptions were unreasonable. In many cases people on the ground also know things about certain locations others do not from outside.

As a new investor I am hoping someone could help me in looking at two properties in Memphis.

Property 1:

6740 State Line Rd

Memphis, TN 38141

2 floor, 3 bedroom, 2 .5 bath with a 2 car garage selling at $99,000. Just renovated with most things being new. 1,775 sq feet on a 10,000 square foot lot. Built in 1996. Last sold in 2012 for $55K.

Price: $95,000

Mortgage Amount: $79,200 (20% down)

Closing Costs: $4,950

Cash Invested: $24,750

Rent: $1,095 a month and $12,483 annual (8% vacancy)

Property Tax: $1,086

Insurance: $900

Interest: $3,643.2

Property Management $1,051.2

Repairs and capital expenses: 9% of rent ($1,087.99)

NOI: $4,320

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Property 2:

4350 Egyptian Cv,

Memphis, TN 38128

1 story 3 bedroom, 2 bath with a garage selling at $64,500. Just renovated with most things being new. 1,105 sq feet on a 8,310 square foot lot. 5 total rooms with a fireplace. Built in 1993. Last sold in 2008 for $51K.

Price: $64,500

Mortgage Amount: $51,600 (20% down)

Closing Costs: $5,500

Cash Invested: $18,400

Rent: $850 a month and $9,384 annual (8% vacancy)

Property Tax: $700

Insurance: $900

Interest: $2,373

Property Management $918

Repairs and capital expenses: 10% of rent ($938.40)

NOI: $3,554

@Dale Hensley My thinking on that was that all the comps I saw on there were 2 bed SFRs so I assumed the duplex with 2 units should be worth more.

Does not anyone have or know where one can get data on capital expenses over time such as how long a roof will last, a furnace etc.

Also how the capital expenses and R&M budget changes by age of house (in other words a 1920s house will have one level of expenses, a 1950s another, etc.)

I think just using 10% or 12% for all is not the best way to go about it on B class type properties or C and D. 

@Dale Hensley 

@Rodney Kuhl 

Its on Groff Ave and W14th Street.

@Jeremy Tillotson Thank you. I tried to check that out but they didn't have anything on the company. 

Anyone worked with Smartland in Ohio? 

I am asking both in terms of their turnkey products and in general how competent they are and trustworthy. 

Thank you

I am looking at buying a property in Indianapolis, IN 46222. I am an out of state investors. I know its a C area but I was told its not as bad as many other C areas and the numbers seem to make up for it.

Built in 1958 property has upgrades for the roof and furnace, is 5,009 sq feet with central air and forced air heating. 

Price:  $53,000

Mortgage: $37,500 @ 75% with a 4.6% - 4.7% rate

Closing Costs: $2,000

Rehab Costs: $6,600 (nothing major)

Total Cash Investment of $21,100

Rent $550 a side per month equating to $12,144 annually for both sides with a 8% vacancy provision.

Interest: $1,828.5

Taxes: $800

Insurance: $1,1223

Property management: $971.52

R&M and Capex @15% of Rents: $1821.60

Leasing Charges: $1,110

NOI: $4389.38

Return: 20%