All Forum Posts by: Haim Mamane Palman

Property needs updates but nothing major. Rough estimate 10-12k. This will be a nice property to add to a rental portfolio or to fix and flip.

Property needs updates but nothing major. Rough estimate 10-12k. This will be a nice property to add to a rental portfolio or to fix and flip.

Additional Pictures

Video

Rent Range: $750-$850

After Repair Value: 70k-75k

- 7608 Marvin Rd, Millington, TN 38053 3 beds 1 bath 1,109 sqft

- 7702 Marvin Rd, Millington, TN 38053 3 beds 1 bath 1,000 sqft

- 6701 Tommie Ln, Millington, TN 38053 3 beds 1.5 baths 1,054 sqft

Access: Please call (901) 602-7874 or email to [email protected]

*All properties Subject to errors, omissions, deletions, additions, cancellation. All properties sold as is, where is with absolutely no representations written or oral. Buyer is to do their own independent due diligence. Property will not be considered under contract until signed contract and deposit received with all contingencies removed. Sales price is net to seller.

I'm also from CA and invest in Memphis and Indy. Both are great cash flow markets and I recommend that you reach out to the turnkey providers and ask them a lot of questions about their services. Most of the reputable Turnkey companies are very active on BP and I'm sure they will jump on the thread. I personally purchased from Memphis Invest and had a very positive experience even though I paid premium for the property. It's been the most stable investment property that I have owned in Memphis. 

Good luck

If you have more time and want to be more involved in the transactions and learn more about real estate investing, there are alternative models to the turnkey model. I purchased properties in Memphis at or above retail price from turnkey companies as well as properties at wholesale price and I think both options are great. It's more of a personal choice.

One alternative model to turnkey is to buy properties at wholesale price from wholesalers or realtors (usually with 20-25k equity) and have a reputable trustworthy property management company do the rehab and manage the property for you. 

The pros - equity, equity, equity which means that if you need to liquidate, you are less likely to lose money or lose much less money compared to if you buy from a turnkey company at or above retail price. 

Cons - more risk, dealing with a rehab when you are out of state is not an ideal situation to be in if there are issues with the rehab (ask me how I know...). You will also spend more time managing the property manager to make sure the rehab is on schedule and on budget. Financing - buying a property at a discount usually means that the property needs work and therefore conventional lenders won't lend on it and you will need to buy it with cash and won't be able to leverage compared to buying a rent ready, fully rehabbed property from a turnkey company.

Again this option is good for someone that have the time to be more involved in the transactions and is more risk averse and want to learn about real estate investing. 

If you don't have the time and want a completely passive investment with minimal involvement, this is not the model for you and turnkey is probably a better alternative.  

send me PM

I personally haven't had success in buying and holding in the lower end neighborhoods in Memphis (20k-35k price range, C- D class). Turnover was high and the overall experience was not positive and the numbers were far from the projections. I have had a better experience in the B-C but mainly because of the property management company. The location is definitely important but selecting the right property management company is even more important as they can make or break your investment. There are companies that had great success in areas that considered bad such as 38127 and there are companies who did a terrible job managing properties in good areas.  In general, you are better off in the B C+ neighborhood where the rent is $900 or higher. The purchase price will obviously be higher and the return will be lower but you will get a much better tenant and a more stable return. IF the property management company does a good job and place the right tenant in your property....

Good luck 

reach out to Spencer Shadrach and Bryan Harris. They are both local successful wholesalers in Memphis and both very active on Facebook.

Good Luck,

agree, hence my point about about the importance of a good property manager. I didn't know what I didn't know when I purchased the property... Now I know. The best tenants look for the best deal because they want to make sure they can afford it and pay on time. 

The good one is Memphis Invest. The other company wasn't bad just completely in a different level. Don't feel it would be right to mention them here on the forum. My point was that the quality of the property management is as if not more important than the purchase price and the location. There is a company in Memphis that manages properties very successfully in 38127 which considered C- D Neighborhood and they have investors lined up ready to purchase more. They just know how to manage properties in this area that other turnkey companies would never buy in.

interesting showdown. I invest in both of these markets and I love both. I don't think you can find A-B class properties at 60-80k in both markets and especially if you plan to buy from turnkey companies. But I may be wrong and will let the turnkey guys to weigh in. Since the numbers are very similar, My best advise to you is to focus your time on researching the property management company that will manage your property as this factor can make or break your return on investment. I purchased two properties from two different turnkey companies in Memphis. The property that I purchased at a higher priced and at a lower rent (76k at $800) performed  better than the property I purchased at a lower price with a higher rent (62k at $925) why? Mainly because of the quality of the property management company that did a better job rehabbing the property, better job screening a tenant and overall better job managing the asset. 

Good luck

Property located in high demand rental area of Whitehaven. Property needs some repairs and updates but there is still 15-20k equity in the deal.

My rough repairs estimate is 10-15k (I'm not a contractor).

This will be a nice property to add to a portfolio or to fix and flip to a buy and hold investor.

Additional Pictures

Video

Rent Range: $800-$875

After Repair Value: 70k

Comparable Sales:

- 1256 Royal Oaks Cv, Memphis, TN 38116 3 beds 2 baths 1,140 sqft$72,700 Sold on 01/12/16

- 3299 Brevard Dr, Memphis, TN 38116 3 beds 1.5 baths 1,153 sqft $83,900 Sold on 12/03/15

- 3252 Lakeview Rd, Memphis, TN 38116 3 beds 2 baths 1,831 sqft $68,000 Sold on 09/23/15

- 1676 Brakebill Ave, Memphis, TN 38116 3 beds 1.5 baths 1,132 sqft $84,900 Sold on 06/23/15

Access: Please call (901) 602-7874 or email to [email protected]

Note: This property is shown Pending on the MLS because we have it under contract

*All properties Subject to errors, omissions, deletions, additions, cancellation. All properties sold as is, where is with absolutely no representations written or oral. Buyer is to do their own independent due diligence. Property will not be considered under contract until signed contract and deposit received with all contingencies removed. Sales price is net to seller.