All Forum Posts by: Ryan Schuler

Good call Greg, I guess I wasn't thinking about the liability of the mower. I guess I might have to look into what it would cost to get someone to do it. Yard is only like 40' x 40' square. Not a big deal to mow it, but it is a 30 minute drive to the place and 30 minutes back. Would rather pay someone in the area I think. I just don't trust the tenants to actually take the time to do it, haha. Especially if I am not giving them a mower. 

@Michael Seeker have you used "Rently"? Looks like it allows you to Show your homes with a digital lockbox for entry into/out of the homes when your home is vacant. I guess the potential tenant has to fill out an application and then they are allowed into the property with a digital passcode. Seems like an interesting concept for placing tenants if you are not available 24/7 since they have a call center to manage calls on the rentals as well. I am not sure what the cost is for the call center portion but it is $30/box for 2 lock boxes minimum per month . I asked for a demo, but if you know anyone in memphis or elsewhere that has used it I would be interested to hear feedback.

Hey Guys! I just bought my first property, and I am planning to manage it on my own. My question is- should I pay for someone to mow the grass, or should I leave that up to the tenant? If I leave it up to them, should I provide a lawnmower and put a storage shed in the backyard? How would you word this in the lease? The house is in Millington, TN, where it is usually sunny and temperate for 75% of the year, meaning grass probably needs to be cut throughout that period except for late November through maybe the beginning of March. Any input would be great, thanks! Ryan

Investment Info:

Single-family residence buy & hold investment in Millington.

Purchase price: $52,000
Cash invested: $1,500

I'm in the process of buying my first deal! This property was listed at $48,700, but it was a good deal up to about $60,000. We won the highest bid by just $500. House next door was flipped about a year ago and sold for $94,000. The house was immediately listed for $900 and looks like it was rented at that amount since it has not been relisted since. After reaching a sale agreement we inspected the home, and it appears as though the rehab is very minimal.

What made you interested in investing in this type of deal?

I have been wanting to get started for years, but finally have enough equity in my personal home to use that money as a HELOC and begin investing. I decided to look at single family right now since it has lower costs associated.

How did you find this deal and how did you negotiate it?

Found the deal on the MLS. We were the highest bidder, so there was not a whole lot of negotiating, but the price was right regardless.

How did you finance this deal?

With a HELOC, with plans to refinance on a conventional mortgage.

How did you add value to the deal?

I will add value through improvements and rent increase.

What was the outcome?

I will let you know once I close and get a tenant in!

Did you work with any real estate professionals (agents, lenders, etc.) that you'd recommend to others?

I worked with James Little, a young investor like myself who is an agent for Keller Williams in the Memphis area. He has extensive knowledge in rental investing since he has a few rentals already for himself. I would recommend him.

Investment Info:

Single-family residence buy & hold investment in Millington.

Purchase price: $52,000
Cash invested: $1,500

I'm in the process of buying my first deal! This property was listed at $48,700, but it was a good deal up to about $60,000. We won the highest bid by just $500. House next door was flipped about a year ago and sold for $94,000. The house was immediately listed for $900 and looks like it was rented at that amount since it has not been relisted since.

After reaching a sale agreement we inspected the home, and it appears as though the rehab is very minimal, and should not total more than $2,000 unless I choose to put some extra money into it.

I used a heloc to buy the home and will be refinancing it out on a 30 year mortgage to increase the cashflow. The value of the home should be close to $90,000, which means my equity in the home will be over $30,000 once we get it repaired and rented.

What made you interested in investing in this type of deal?

I have been wanting to get started for years, but finally have enough equity in my personal home to use that money as a HELOC and begin investing. I decided to look at single family right now since it has lower costs associated.

How did you find this deal and how did you negotiate it?

Found the deal on the MLS. We were the highest bidder, so there was not a whole lot of negotiating, but the price was right regardless.

How did you finance this deal?

With a HELOC, with plans to refinance on a conventional mortgage.

How did you add value to the deal?

I will add value through improvements and rent increase.

What was the outcome?

I will let you know once I close and get a tenant in!

Did you work with any real estate professionals (agents, lenders, etc.) that you'd recommend to others?

I worked with James Little, a young investor like myself who is an agent for Keller Williams in the Memphis area. He has extensive knowledge in rental investing since he has a few rentals already for himself. I would recommend him.

Guys, 

I am trying to wrap my head around the refinancing situation after I have purchased a property, somewhat fixed it up and rented it out. Help me understand this a little bit with a hypothetical scenario:

-Let's say tomorrow I take out a 5/5 Fixed Rate HELOC through PenFed with 75% LTV on my primary residence and rate at 5.5% to have a line of $100,000 extended to me.

-I use the $100,000 HELOC amount to purchase a property for $75,000, which I am going to put $5,000 into (closing costs included) so I am $80K total invested in this property.

-It takes me 3 months to rent the place out after closing, at which time I want to refinance the home into a conventional mortgage.

Questions:

How would the bank look at this from an LTV scenario? How easy would it be to do the refinance?

Does the new refinance affect the ability to pull money out and follow this process with the HELOC over again? Does the fact that it is a rental that is occupied affect the ability to refinance the property in a good or bad way?

If no, how many times can I do this before they stop letting me refinance? 

Thanks!

Thanks Brent. I am checking with some local banks now. I have a group of RE friends here in Memphis that have offered to help me get started. They are providing some expertise to get me started which has been awesome. Once I figure out where I am going to go I will let everyone know the rate and terms of the HELOC.

Hey Guys!

I am looking into getting a HELOC in the Memphis area. I am trying to find the best rate with lowest fees. I am looking at local banks, but when I googled best rates for HELOC it pulled up a company called Connexus. They are advertising a rate as low as 3.5% for the HELOC, which is lower than the 5 or 5.5% rates I have seen elsewhere.

Anyone have a recommendation on a good place to get a HELOC with low rate? Either local in Memphis or online/elsewhere?

My personal Property is worth about $230k and I owe about $83K on it right now. Looking to take out about 80K to start getting properties under my belt.

Thanks!

Ryan

@Michael Quarles a breakdown for each Zip Code in the Memphis area? If so, could you send that to me as well?

Thanks!

Hey Everyone!

My name is Ryan and I have been on the site for a few years, but haven't been able to do any deals yet other than buying my own home and renovating it over the past 3 years. I have been itching to do more, especially with so much growth going on around me in Memphis. I have been looking in my immediate area for deals, but not finding a whole lot that I am super excited about. With my job I go over to Jonesboro, AR a good bit and I was looking on Trulia for multifamily properties recently and noticed that there seem to be more options there.

I was wondering if anyone has a recommendation for a REI that is also an agent and has dealt with Multifamily properties in Jonesboro who might be able to help me get more acquainted with the Jonesboro market and show me a few homes? Any help would be appreciated!

Thanks,

Ryan