All Forum Posts by: Jonathan McGee

Parkway Village is a pretty tough area, at least for the past few years but it seems to be changing. I would say this particular street may not be as bad as some of the others deeper into the neighborhood since Brookdale is close to the main highway which is American Way.

Contract for Assignment -

This is a spacious 4/2.5 2080 sq ft. brick veneer split level home built in 1961. It was recently remodeled and also has had recent work performed on flooring. This investment was last occupied at $850/mo but has an estimated rental rate between $900/mo and $950/mo. Estimated market value of $96,000. Features a fenced yard, bar room, fireplace and separate storage shed. This property is in rent ready condition minus some interior paint.

Priced for assignment at only $56,000. This would make for a great candidate for a retail flip, buy and hold or cash out refinance! Rent ready repairs estimated at $2,500 for interior, A/C unit installation and cleaning.

Can be purchased with cash/HML or mortgage if using our Buyer's agent exclusively at 3%. Buyer required to pay all closing costs.

Recent comps nearby:

4806 Blanding Cv. Memphis, TN 38118 - Sold $94,900 on 4/18/18 - 0.2mi

3287 Boxdale St. Memphis, TN 38118 - Sold $89,900 on 5/16/2018 - 0.3mi

3423 Renault St. Memphis, TN 38118 - Sold $74,000 on 4/27/18 - 0.3mi

Contact Jonathan at [email protected] or at 901-290-7827 for more information.

Contract for Assignment -

Don't miss out on this great investment opportunity in a popular area of Memphis, TN! 

2406 Jenwood St. Memphis, TN 38134 is a 3/2 1600 sq ft. wood frame home featuring a fireplace, vaulted living room ceiling, tiled kitchen and bathrooms and a wood privacy fence. This property has an estimated market value of $110,000 with an estimated rent rate of $950/mo-$1000/mo.

This property is currently occupied with a long term tenant at $875/mo but is due for a rent review and has the option to be increased to $950/mo. At the current rate, this averages to a 10% cap rate at the purchase price after management fees, taxes and insurance. If refinanced into a mortgage, you could easily be earning close to $300/mo after P&I.

Excellent opportunity for a BRRRR strategist to buy in and refinance at 75-80%!

Priced for assignment at only $79,000. Will need to be closed with cash or HML with a $500 earnest money deposit.

Recent Comps:

2342 Curbertson St. Memphis, TN 38134 - Sold $139,900 on 12/28/17 - 0.2mi

2456 Kimbark Woods Cv. Memphis, TN 38134 - Sold $115,000 on 2/7/18 - 0.1mi

2441 Chiswood St. Memphis, TN 38134 - Sold $83,100 on 5/29/18 - 0.2mi

Contact Jonathan at [email protected] or at 901-290-7827. 

Email me to join my Buyer's list to receive updates on new deals before they hit the market!

Contract -

Don't miss out on this EXCELLENT investment opportunity in a B class neighborhood of Memphis!

This is a nicely kept property in the popular Bartlett area, located in a great investment neighborhood. It is a 3/2 1232 sq ft. brick veneer home built in 1991. The estimated market value is about $130,000 with an estimated rental rate of $1000/mo-$1050/mo.

Currently occupied on a 1 year lease at $900/mo. 30 day notice to vacate can be sent to tenant at Buyer's request.
At the current rent rate, this would yield an 8% cap rate. Increase the rent to the estimated market rate to $1050/mo and yield a 10.5% cap after management, taxes and insurance fees!
Features a recent roof replacement, newer HVAC and water heater, privacy fence, fireplace and vaulted ceilings. This could also be a great retail flip opportunity! Home is in great condition, but with a few turnkey upgrades, you could retail at the estimated value of $130,000! Great candidate for BRRRR investors! Cash out refinance up to $104,000!
Currently priced for assignment at $96,000. Must be closed within 10 days from contract. Cash or HML only with $1000 earnest held at escrow.
Recent Comps:
7026 Reese Lake Cv. Memphis, TN 38133 - Sold $127,750 on 1/29/18 - 0.2mi

2647 Van Der Veer Dr. Memphis, TN 38133 - Sold $125,000 on 4/19/18 - 0.1mi

7003 Tagen Ct. Memphis, TN 38133 - Sold $119,000 on 6/4/18 - 0.1mi

2547 Reese Lake Cir. Memphis, TN 38133 - Sold $120,000 on 5/15/18 - 0.3mi

See additional photos here: https://drive.google.com/open?id=1mc6nfPh8M5I_IRlxnXfbSDp-s1WqMNyU

Contact Jonathan at [email protected] or to 901-290-7827 for more information!

Closed!

@Nathan A. I would say this is part of the reason why Memphis more commonly known for single family investing and not so much multi-family. For starters, you do have to consider that in Memphis you have to pay both city and county taxes which can skyrocket on commercial properties. Several complexes the owner is responsible for water, sewer and garbage. These are based off each individual unit and by tenant. I do believe you have the option to select your own garbage company so you can try to save there, but I'm sure sewage is a fairly consistent cost and water is gauged by the tenant usage. 

These additional expenses can really hurt the numbers on a multi-family investment, especially if it is in a low C or D area where the income is not offsetting the incurred costs. I've noticed that with your B/C+ units, it seems you as the owner are not usually paying for water usage which helps tremendously on costs. 

Usually the rent rates are increased to levy the additional costs, but advertised to tenants as only having to pay electrical utilities. 

Hey @Ryant Nelson and welcome to BiggerPockets! It sounds like you are already aware how helpful BP is and the plethora of information available here to help guide you along the way! Not to mention the countless connections that can be made here.

I'm also glad to hear you are here in Memphis and looking to invest locally! Memphis has great potential for solid investments and we have a unique market. Since you are currently residing here, you'll have a first person view of the market and be able to supervise your own process along the way.

I just responded to a similar post from another member that is starting out in Memphis. While I understand the excitement of the "house hack" idea, it can be challenging to start out with here in Memphis. Memphis' strong suit is in single family homes and not so much on small multi family properties. We do have a ton of larger multi family units, but duplexes are scattered throughout the city and also one person can own one side while another person can own the other. They are treated as two individual properties and not as one. The idea of "house hacking" can be easily translated to just owning two single family homes while living in one and renting the other. Granted, if you find a deal where you can purchase both sides of the duplex, you can get a traditional loan that will treat the purchase as one mortgage. This is where the house hack idea steps in and makes sense. Again though, it can be challenging to find a duplex in this city where both sides are owned by the same owner and they are selling it.  This is even more challenging with triplexes and quads as they are rare in Memphis and seem to be only in certain parts of town that are less desirable to live in.

I have seen and helped several investors using the BRRRR strategy here with single family homes and have had great success! You can come across several value add deals that you can buy with the cash up front, perform a necessary remodel (I say necessary meaning you do not have to go above and beyond to get a full 75%-80% bank loan), occupy with a tenant and cash out refinance. Many times you can even buy a property that is already cash flowing and in great shape at a price discounted enough to qualify for a full cash out refi. Cash talks!

I would consider using the house hack method on a single family home as well. You can purchase a nice B class property say in Cordova for a discounted price from the market value, rent one or two rooms out for the first year and earn almost as much as if you were in a duplex. After that first year, you can rent the home out completely to a tenant and pick up a second mortgage on another property. 

There are also other options such as seller financing that you can dive into fairly easy and start cash flowing. Refinance into a better rate after the first year or so and repeat! 

Feel free to reach out if you'd like to discuss further!

Wish you the best in your success!

Hello @Augustus Gottlieb and welcome to BP! You've definitely come to the right place to learn more about investing and there are quite a few of us here locally in Memphis. I'm glad to hear you've gained interest in investing here locally!

While I understand the draw to start out with multi-family properties, it can sometimes be challenging to begin with. One of the main reasons is that in order to do a "house hack" is that you would have to find a duplex that has both sides available for purchase. Memphis is one of the cities where you can own one side of a duplex and someone else can own the other so it makes it slightly harder to find a deal where both sides are available for sale. Not to say that they aren't out there, but definitely harder to find. 

You'll also notice that there are not very many triplex or quads available, either. Memphis is dominated by single family homes and larger multi family complexes. There are a few triplex/quads in the city, but they are usually in less desirable parts of town where I would think you would not want to actually live in it yourself. 

Starting out with investing in single family homes or duplexes in my opinion are a safe way to start out and understand the process of investing. Since you are considering a live in flip or house hack, I'm assuming you are looking to purchase with a conventional loan. You could consider investing in a 3/2 or a larger single family home like a 4/3 and rent out rooms in the home. There are always people in Memphis looking to rent rooms. Especially with you being a student at Rhodes, I imagine you would have no problem finding people to rent rooms! You could definitely look into the areas surrounding Rhodes in 38107 and there are some great investment opportunities there but there are also some bad spots so make sure to do some homework on the property and its surrounding streets. The closer you are to the college, the better. The 38111 area would be a good spot for you as well. There is a site called Memphis ULoop that you can use to advertise your rooms to college students. 

Feel free to reach out to me if you would like to discuss more! I'd be more than happy to help point you in the right direction! 

@Joel Brown That does sound a bit high. Are you selecting maximum coverage? I'd suggest Shelter Insurance. I got a basic one year premium for $538 with a $1500 deductible on a 3/2 1800 sq ft home in 38141 in Memphis. Feel free to PM me for my agent's contact info.

@Mike Snyder Can you send details on the portfolio to my email at [email protected] and I'll get back with you ASAP?