All Forum Posts by: Mark Allen Kenny

@Account Closed I like Memphis as well. I'm actually considering buying a portfolio of SFHs there. From what I understand, it's very common for people to rent homes there (as opposed to apartments). I've looked at multi-family properties in Memphis as well. But the neighborhoods I want to be in are more for SFH rentals. Those are in the nice, stable neighborhoods with low crime. Again, I'm not SUPER familiar with the market but I've been keeping an eye on it and for me, a portfolio of SFH might make the most sense.

@Julius Dixon This is a solid plan but I agree that you need a larger list to mail to.  The response rates are low so I would try for 500 addresses to mail to if you can.  At the bare minimum, I would start with 100.  The pre-written scripts at yellowletters.com are pretty good.  

I think it depends on your personality but I would recommend 1 of two paths.  1) Get into wholesaling.  You can send postcards and return calls after 5pm.  That's a great way to produce cash for your first downpayment on a multifamily property.  Or 2) You could partner with others who have cash and provide deals that people will be excited about investing in.  That involves networking and looking at a lot of deals until you find one that makes sense to bring to a potential partner.

@Account Closed I live in NYC and am originally from Chicago.  Although I love these cities, in my opinion neither is a good place to own rental properties.  Chicago has a lot of problems (landlord laws, high crime, decreasing population, etc) and NYC is just overpriced (cap rates are low).  I agree that taxes are too high in both markets as well.  But if you're looking for other markets in the Midwest or East Coast, there are a lot of other great markets.  Philly, Memphis, Nashville, etc.  Lot's of great landlord friendly markets with reasonable taxes.  I own a portfolio in Philly of multi-family buildings and the taxes in Philly are very low.

There are a few options.  Listsource or rebogateway have worked well for me in the past.  It's important to have a target area and know what types of properties you'll be going after.  I would recommend having a smaller list when you start to make it very focused and send them a mail piece several times.  PM me if I can help.  

@Michael Guay, what neighborhoods are you looking in?  Parts of Chicago are really bad.  I'm originally from Chicago.  But I don't invest there because of high taxes, population decline, poor landlord laws and increasing crime.  But with that said, there are plenty of investors there making money.  It very much depends on the neighborhood and the property class.

@Jerry Lucker This happens in Chicago where they slow down evictions during the winter months.  I don't believe it's a law but the city drags out the process for sometimes even 6 months or more during the winter.  (Which is a great reason not to own rental properties in Chicago).

Welcome @Dallas Campochiaro!  I own property in Philly and am interested in South Carolina too.  Let me know if I can help!

@John Halverson do you know how to get a list of properties in your area and send the owners direct mail?  I would try and send a small mailing out right away.  That's a great first step.

The terms of the loan look okay.  I'm curious how long you estimated for the carrying costs?  I think some investors get in trouble with underestimating how long it will take to sell the asset.  If the end buyer is a home-buyer remember to factor in extra time AFTER construction for marketing, etc.  That will shrink your margin a little but it looks like your numbers still work.  Congrats on the deal!