All Forum Posts by: Haim Mamane Palman

3/2 property in a rental area where turn-key companies operate. If you are a buy & hold investor this can be a good property to add to your portfolio. 11% Cap Rate. See complete analysis here

Address: 3795 Kipling Ave. Memphis, TN 38128

3 Bedrooms, 2 bath 1233 sqft.

Photos: Here

Estimated Repairs: 15k. repair damaged sheetrock, new carpet and pad, new tiles, paint throughout, new condenser, repair/replace fascia, trim, and doors and other cosmetic repairs.

I'm not a contractor so you will have to go out there and confirm the numbers as your guys can come with a lower or higher bid.

Rent Estimated: $725-795. Check rent comps here

ARV: 55-62k. Absentee owners (i.e. investors)

Comps:

4027 Trudy St, Memphis, TN 38128

3/2 1278 sqft sold on 5/7/2014 for 57k. 0.22 miles from subject property

4062 Hobson Rd, Memphis, TN 38128

3/2 1314 sqft sold on 5/1/2014 for 61.5k. 0.27 miles from subject property

4372 Kerwin Dr, Memphis, TN 38128

3/2 1299 sqft sold on 4/23/2014 for 58.7k. 0.34 miles from subject property

Asking Price 32.9K

Note: This is a HUD home we won the bid on and we're flipping. You can close on this ASAP. Cash or Hard Money only.

Your realtor should be able to access the property with HUD keys. If you need to coordinate access please feel free to contact me.

just to give everyone an update. I've decided to list the property with a realtor and it's been the best decision I could have made. Granted I'm in one of the best markets in the country to be a seller in.

On the same date that I signed the contract with the agent, I had a comprehensive marketing plan that included putting a for sale sign, ordering a domain for the property website, sending a "coming soon"'email to the top 10% agents in San Francisco, scheduling a brokers' tour the following week and scheduling an open house. After three days of prepping the house, painting and staging the house, one of the agents begged my agent to bring a potential buyer to check out the property before it officially go on the market.

This buyer loved the house and wanted to write an offer. My agent told the buyer's agent that the offer should be significantly higher than asking price in order for me to accept the offer before the property goes on the market. The buyer wrote a clean offer 174k higher than asking price!!! That's right 174k ABOVE ASKING PRICE. Obviously I accepted the offer and we open escrow on Monday. The property will not go on the market. The San Francisco market is INSANE. I'm glad that I am a seller in this market.

welcome to the BP family. I live in San Francisco and invest in Memphis. Fee free to reach out.

Good luck,

Haim

@Jay M. Welcome to the BP family. I'm also from CA (from San Francisco) and I invest in Memphis.

Feel free to reach out.

Haim

@Jay Hinrichs and @Curt Davis it's clear that both of you are not big fans of Frayser. What's your take on Raleigh, 38128 zipcodes where properties are rented at 825-$900. A lot of Turn-key providers like this area and I personally own few properties in this zipcode. Do you think it's not a good area to buy for local and out-of-state investors?

Thanks,

Haim

@chaz Reid. I also do virtual wholesaling in Memphis. It can be done as long as it is a win-win situatiation and the numbers work for the end buyers.

Few tips for you, have your boots on the ground take a lot of pictures for you , the good and the bad, and especially the "big ticket items" such as roof , AC, furnace, electrical panel etc. Most of the experienced investors would be able to estimate the repairs based on the pictures and regardless will send their guys to verify the repairs cost.

Another tip for you is to look at the investors comps (I.e. The low comps) or the sale price before the property was sold at retail price just to give you an idea where you number should be.

It's great that you ask questions and seek feedback from experienced investors but don't let anybody push you around :)

thank you everyone for the comments and suggestions. It seems that the best option is to list it with a realtor.

@rafael floresta. I want to avoid paying the 4-6% commissions. So worst case scenario would be to pay 2-3% only to the buyers agent.

@joan Dickie. I wasn't aware of this option. I will definitely ask if that's an option in San Francisco. Thank you.

Hi

As most of you know, it is very competitive market in San Francisco now and most properties get multiple offers and drive the price up. My property is in a great location and shows well so I don't think I will have a problem to sell it at or above asking price.

Realtor commission here are 4-5% and I would hate to pay 30k just to have a realtor take few pictures, list it on the MLS, and do one open house before getting multiple offers. I understand the benefits of listing a property with an agent but I think I can list it on sites such as Redfin, Zillow, Trulia, Craigslist and the like and find a buyer in this market.

I've wrote multiple contracts in the past and I have good relationships with title companies that can guide me through the process without a realtor.

What do you think I should do? List it with a realtor or on my own?