All Forum Posts by: Jordan Ray

Quote from @Saurabh Kukreja:

Quote from @Jordan Ray:

Quote from @Saurabh Kukreja:

Is it priced well? Will this be a good deal ?

6436 Macon Rd, Memphis, TN 38134 | MLS #10185084 | Zillow

Looking at these numbers :

The thing that I like is its in a good area. The current tenant is paying 1550 , but there are other properties in the same community available for rent at 1400, which makes me think If I should calculate my numbers for 1550 Or 1400 ?

Also , normally I keep 5% as vacancy rate , but for this case I did 4% as its a desirable rental area

Is 7% expense conservative for such townhomes?

Is 6.2% Cash On Cash a good deal worth looking at ?

I would pass on this deal. I personally wont buy a property unless it has a minimum 40% Cash on cash return. (Best done by a BRRRR) Also, rents are coming down slightly and properties are taking way longer to rent out. There is plenty of supply so I would either pass on this or write them an offer that makes sense from your position. Let me know if I can help in any way!

I think it depends on the strategy right , I am still a beginner and wanted something more turnkey rather than BRRRR.

How would you think of something form that perspective ? My goal is Long term and positive cashflow with appreciation.

When buying a turnkey property. The best way to buy a property is by using the 1% rule.

Quote from @Saurabh Kukreja:

Is it priced well? Will this be a good deal ?

6436 Macon Rd, Memphis, TN 38134 | MLS #10185084 | Zillow

Looking at these numbers :

The thing that I like is its in a good area. The current tenant is paying 1550 , but there are other properties in the same community available for rent at 1400, which makes me think If I should calculate my numbers for 1550 Or 1400 ?

Also , normally I keep 5% as vacancy rate , but for this case I did 4% as its a desirable rental area

Is 7% expense conservative for such townhomes?

Is 6.2% Cash On Cash a good deal worth looking at ?

I would pass on this deal. I personally wont buy a property unless it has a minimum 40% Cash on cash return. (Best done by a BRRRR) Also, rents are coming down slightly and properties are taking way longer to rent out. There is plenty of supply so I would either pass on this or write them an offer that makes sense from your position. Let me know if I can help in any way!

 That's great Bob! Great decision! Gotta love the forums!

Hey Sunny! There are plenty of agents that have 10+ properties in their portfolio around the Memphis area! I am happy to connect you with a few of them! I also own a small portfolio but not quite 10 but I can bring the value of 20,000 properties haha (Wild Number) Let's connect and see if I can help at all! Talk soon!

Hey Keegan! Welcome to BiggerPockets! I love your enthusiasm and I this is exactly where we all start in real estate with excitement! Its like a huge 💡 just went off, best feeling in the world knowing you just tapped into something that will make you rich, right? With 3 kids living in one of the most expensive parts of the county with $8K.. I would advise to hold off for now and save your money. You could try wholesaling, thats a way to get into real estate investing with no money and you can learn a-lot this way! Take care of those kids and listen to BiggerPockets podcasts and read "Think & Grow Rich" and you will manifest this dream of real estate investing into reality! Not trying to sound cheesy but I am an overenthusiastic person about real estate and when I obsessed over learning & learning I eventually read that book half way through before I couldn't help myself any longer... I just jumped into real estate full time without any regret! I also am married and have kids. Take action now by learning, but don't jump with $8K. Good luck and I look forward to hearing your journey in the forums! Let me know if I can help in Tennessee & Mississippi at all! 

Hey Bob! I would be extra cautious entertaining these types of offers. Lots of them are fake buyers and are actually scammy wholesalers that have no idea what they are doing and they will waste your time. Ask your agent to check the buyers track record, portfolio if possible and verifying it with the tax assessor and also ask for proof of funds as a bank statement. He will also need to check the bank statement to make sure its legit. I saw an offer like this one recently with a Navy Federal bank statement that "had $700K" in the bank and it seemed legit.. but the LLC wasn't active with the state and they had assignment of contract language all over it. The red flag for me was common sense. Why would they make an offer for seller financing with a low downpayment but show they have $700K in the bank. Ridiculous right?

Give Derek Phillips a call at Phillips Property Solutions (901) 436-3646. He does all of my rehabs and they turn out great every time!

Foundation Title Company is the best!

Dennis, the only reason Memphis's population has been decreasing is because they are moving into Desoto County Mississippi just below the Tennessee state-line but are still working in Memphis. You might also check out Southaven, Olive Branch, and Horn Lake as they feed off of Memphis very well.

They come around from time to time Alex, the secret is to make a-lot of offers. I also have some in my own portfolio that cashflow $500/month. I did however specify in my previous comment a range of $200-$500. 

$500/month is definitely the best of that range. If you are only analyzing properties based on the list price and the repairs that are needed and not making any offers that work for you.. you will never find a property that cashflows $500/month.