All Forum Posts by: Kenneth Dai

@Matthew Diionno. Still going well with Memphis Invest. No issues, and even very little maintenance required. Good luck to you, Matt! I hope you add your experiences to the boards, as folks seem to constantly be looking for input from other owners. And BP is such a great place to share learnings/experiences.

@Veera Vala Took me a while to get back to this post. The other properties I purchased with Memphis Invest: one appraised at asking price, the other appraised a few thousand below asking price.

There have been no tenant turnovers in the past three or so years. The property management arm does an excellent job getting to lease renewals early.

Overall, the company has been an excellent way to invest in single family residences out of state, for what I want (mostly hands off, property solidly rehabbed, steady cash flow, consistent updates from property manager).

@Dave Wojcik yes, I understood, at least on some level, what I was purchasing. I even visited the area and talked to some neighbors. From what I understood, Chicago varies significantly from block to block in the south side. I also hope folks get that there are good operators property managing in that area, like GC Realty.

@Moses Brach hi Moses. I hear there are lots of rules the syndicators have to follow around advertising and such. So, PM me if you want to get in touch. I have no idea if I’ll be causing someone headache by posting about offerings or partners here, plus it is off topic.

@Zyrus Pugal glad that my posting helped you in your real estate investing journey. I keep meaning to update further. A few months ago, I switched property management to GC Realty. It has been a world of difference! They address maintenance issues quickly, have gotten the building on a monthly pest management schedule, and they address CHA findings quickly, so fail items can usually pass within a week (ie, less/no time in abatement). Also, the tenant from one unit went to another rental without providing notice, but the GC Realty team got a market rate tenant into place within three months. I’m a lot less worried about the property now that I feel more confident in the property management team.

@Alejandro Garcia I did end up purchasing another property from Memphis Invest, and it performs similarly to the first two properties. I’ve been putting my capital into syndications lately, but still plan to purchase other properties with Memphis Invest.

@Emmanuoel Haroutunian I don't mind answering your questions. Yes, the guidelines from Bigger Pockets and many members seem to indicate that there should be at least 5% put toward CapEx along with 5-10% on repairs. I did run the numbers with the 50% rule, and larger quantities for CapEx and repairs, which ends up with around $100 or so cashflow on a property. But when I asked about what types of repairs and CapEx to expect, it didn't seem like there would be any for at least 2 years, so it seemed sufficient to set aside 5% total for anything that might come up. I could be completely wrong, and find out all cashflow from several years is wiped out by one repair in 5 years. Maybe you'll get different evaluations from others who work with Memphis Invest.

As for how things are going - after this first year, still all smooth.  The only expenses so far have been property management.

@Warren Edward sorry, Warren, I also do not have a recommendation for Chicago attorney.

Mike Thoeresz I purchased a duplex with PFR about 9 months ago. I put some of my experience in another thread, but haven't gone back to update recently. Basically, it has been very rocky, especially with the section 8 inspections in Chicago, plus some neighborhood issues and PM issues. What I didn't account for was section 8 abatement, which can actually be more costly than tenant turnaround. There are also posts about being careful when purchasing in Chicago south side, especially as out of state investor.

I own all in Memphis with Memphis Invest. The main reason is because I figured it would be best to start at their base of operations, plus I just liked the Memphis area when I visited.