All Forum Posts by: Jamie Parker

Ok bro!! 

Looks to be retail from new paint, doors and windows. Interior is crisp! 

looks like a solid STR or top of the market rental. (4)2/1 (2)1/1? going off the windows

according to the realtor dot com the property need to cover $3900 mortgage. that is 650 per door.

However, taking into account for maintenance, insurance, taxes, management, and spread. 

Question can it rent for 750-850 per door or 850 for the 2/1 and 650-750 for the 1/1? if the rental comps support these numbers it may work. 

Biggest problem now in the market as a whole. Tho interest rates are uncomfortable, bank closings have made the lending market pucker a little. It is easier to by an asset that is already performing  because non performing assets have to be stabilized into the debt service cost.

Huntsville is a good secondary market to nashville investors. I don't know the area honestly. been to redstone arsenal a couple times but thats bout it. 

Hope this helps

What kinda of investing are you aiming at in Jackson. Im not in your area but curious about the region. In up in memphis and desoto county.

What is the cost to build in memphis on average. I want to make an offer on a 2 packages of vacant lots looking like 10-20 builds. If I'm getting the lot for 25-35k am I listing @ 225-250. What are the hard cost(sewer taps, GC fees, permits), time frames from surveys to footers to frame to ruff ends?  

Looking to factor the cost of money. Timing is what it is. BFR (building for rent) may be an alternate exit with cash out refi. Main objective is building for sell. 

Hello,

What market do you flip in? what type of loans and/or financing opportunities are ideal for you situation?

Well my first thought would be states with no income tax,

Second possible oppurtunity zones, (legislation is currently stalled as of 22 March to include more census tracts)

third asset types, I like multifamily 4-20 units, sfr portfolios 5-10 or ones you can cherry pick.

then to markets Memphis is a good rental market secondary market like desoto county, bartlett germantown etc. Nashville is a alittle hot and it would take some work to get in a deal. A secondary market of a city like nashville tho. Clarksville, murfreesboro, hermitage, hendersonville. Worked for an investor and acquired nearly 200 doors in 6 months in bham. Only draw back to good markets is heavy hedge fund presence. There is a good amount of competition. WIth good property management things seem solid. 

I have been canvassing San Antonio and Dallas, Phoenix, Ft Lauderdale, Asheville and surrounding areas. 

would you ever consider putting down 25-40% down to get a better CoC?

Well im glad you mentioned seller financing. I gonna close (finally) in April on a rehab. Then may grab a seller financing deal every couple months. because 0% is way better than what anyone can do at this moment. I do offer the seller 3% of the purchase price due at closing. To say hey thanks for letting me finance with you versus the bank. 

With Rates being what they are at this phase of (dare I say it) a recession or slow down or correction, or whatever help confidence;

SVB, FIRST REPUBLIC BANK, SIGNATURE BANK, AND SILVERGATE

Should avoiding the banks for a quarter even be a thought in my planning?

Though it may seem kinda disconnected, In my opinion the effect on interest rates is something to watch out for. 

I'm not a finance guy, so im definitely not speculating because i wouldn't know where to start. Only looking to exercise some caution. positioning at this point could leave one poise for a big break out . In my market prices are falling steadily, over that past 6 months. Things are still moving, (I just save a bunch a properties on zillow and see what happens.) Im sure realtors and lenders have better data than that. 

I have come up with a strategy that involves seller financing to avoid the banks. However, on a final product it doesn't matter as much if lending becomes any more expensive. BTR wasnt part of the plan however cash out refi may not look as much of a turn either depending on investment property lending moving forward. 

Here my thoughts ultimately, for a single family full gut rehab on a 6-8 time table (environmental court). I know that's a long time. BUt that's the time i want to have a portfolio to roll 3-5 properties into to close out the year. 

How could the FEDs handling of recent events affect a banks willingness to lend? 

Should my numbers be even more conservative? 

On larger purchases Multifamily, assume the loan vs refinance or starting new debt?

Carrying paper on acquisition? 

Putting in more cash 25-40% if can raise it in private equity? 

Just looking for some solutions because Ive gotten the ball rolling and this could be one of those times other investors talk about e.i. "in 09 i was picking up property dirt cheap", or as my dad says " in '85 i would have invested in nike" kinda situations, just a thought.. 

any insight, comments or thoughts?

All thank you for responses,

when identifying property management, what ar your checklists? what are expected items

When properties sale that have property management in place. Is it customary that property management remains in place? Is it possible to retain existing property management remains? What should I expect from doing that dance?

Im under contract and with closing set for 1 FEB. This is gonna be a learning experience due to dealing with environmental court. The property is condemned currently and as of June 2022 Will confirm before closing that I have till June 2023 to get the property below 75% deteriorated or whatever verbiage that was used to denote the property being in a degraded condition. 

With an estimate in for the roof ($10,000 approximately). My thought process going in was that the roof would be 1/4 of the total rehab budget. Going on a limb and estimating 50k, and additional 10k, to the budget. With purchase and rehab that estimated 35k + 50k = 85k. In a perfect world the property will need to hit an appraisal of 120k to hit 96k @70% for cash out refi. 

My first rehab lets see how it goes!