All Forum Posts by: Jason Stubblefield

Sorry, I'm late to the party.  @Mark Allen@Tony Nguyen I'd love one of your copies as well. 

Hey all!  I just closed on a 34 unit apartment in West Tennessee.  I think it is a solid deal and has great numbers.  I bought it from a burned out landlord and now I see why.  He has tenants paying weekly, monthly, bi-weekly, or whenever.  The tenants signed yearly or monthly leases that allowed them to make payments by the week.  It seems like the previous owner just asked them when they could pay and allowed that to be there due date. 

In order to run this building more efficiently I'd like to switch everyone over to monthly tenants.  Does anyone know of a good method to change weekly/bi-weekly tenants to monthly tenants?  I figure most of the tenants live check to check. I'm looking for a way to get them ahead of schedule by the month instead of only paying for the week prior. 

Thanks @Tom V. and @Dennis Tierney!  I definitely wanted to approach the seller with a financing option.  The seller had issues with financing before so they wanted to know I was approved for a loan before entering into contract which is why I started with the banks.  I would hope that I could make it work completely on my own and then have the seller funds sweeten the deal. 

I never intended to wipe out all my cash. I wanted to use the HELOC and then part of my cash for repairs/etc as needed. I guess my real concern is that you can't use a HELOC unless you're able to be approved by a lender completely on your own funds. I never knew that before but I was wondering if I was missing somethin.

Hey BP, I'm a bit of a newbie with investing in multi-family properties. I've been looking at properties with intentions of using my HELOC for the down payment and recently found a great deal. My problem is that I'm unsure of the best way to use my HELOC. I have just enough of my personal funds to cover the down payment but it would almost completely wipe away my savings. I applied for the loan but didn't tell the bank about my HELOC. They said they weren't comfortable because I wasn't liquid enough. If I do tell the bank I'm going to make the down payment with my HELOC they will frown because I'm using borrowed money.

I did read about people transferring HELOC money over and letting it season in the account. Consequently, I'd now be making payments and interest on money I'm not using. Also I wouldn't want to have to wait 2 - 3 months to try to make a deal work again. Does anyone have any strategies for making this work?

Thanks all!   Very useful information. 

Thanks @Alex Craig! That's exactly what I was looking for. I am starting to get a sense of what everyone is talking with Memphis being Street by Street. 

Thanks @Drew Castleberry and @Stephen Akindona.  I'll definitely be using those sites and taking your thoughts into consideration. 

Thanks @Douglas Skipworth!

I'm looking to invest in the Memphis market and I was wondering if anyone could help me narrow down areas to focus on.  I have have limited funds for the number of homes that I'm looking to purchase.  I understand there are some great areas and some not so great.  I'm looking stay around the 50k mark with each purchase but I know 50k in one area can be drastically different then another.  While digging through the forums I found this great map from a couple of years ago: Memphis Area Map. Can anyone advise on how to best use this map for my situation (i.e. focus on the orange/yellow/purple etc)? Or if anyone has strategies for winning in lower priced markets, I'd love to hear them. 

Thanks @Tina Sandoval and @James Martin