All Forum Posts by: William Powell

I would self-manage and save that 20%. For me that adds up fast for just listing, taking pictures, and making a few phone calls.  

This can be done. I recommend looking in the bible belt for properties with those numbers.  I see them but they are more C class not B. 

It's probably gonna take the higher projections to get considered for the property. The deal has been listed and 30 days isn't very long. I explained this yesterday to an investor trying to make me an off market deal for my 4 plex. I told him, He needs a motivated seller in order to get low offers accepted. If the seller knows what they got and placed it on the market chances are he or she wants near the 250 and has done their homework. Your numbers look good and making an offer never hurts but to get another 50k discount on a property with the ARV considered might mean you miss this deal. Lastly, if this property continues to sit and other offers aren't coming the seller may start looking at your offer seriously after time. Good luck and let us know what happens.

Congrats you are moving forward. That's what matters. You gotta get your hands dirty so you can start learning how to manage tenants and properties. I would continue to use the BP resources and enjoy the ride.

 I wouldn't risk it. Look for an apartment in the pinch or uptown area in Memphis. I saw a five unit available in the uptown area on 712 fifth st for $599k

If it will rent well and it's in a high appreciation area, do a cash-out refi and keep the asset. If not sell it. Selling is definitely cleaner but a little slower than a refi. It also depends on how fast you need the money. 

Don't get into the habit of being too nice of a landlord. They will only take advantage of that kindness. Tell the tenant, on this date, the utilities will be removed out of your name and or turned off. They will find a way if you give them a date. However, if you give them a blank check and tell them that they can pay you back, they will owe you indefinitely. It muddies the water too. What are you going to do if they owe you utilities but not rent? Giving them a few weeks before giving this ultimatum is kind. They know other landlords don't give them any free utilities not for a day. Plus Im sure it is in your lease that they must be in good standing with the utility company. 

Like you I have been contacted and was considering placement of a tenant. I am wondering how is your search for direct insurance contacts going? Were you able to connect and gain a contract of sorts with your local Allstate, state farm, etc? 

 My tax pro has told me that I couldn't pay myself as an attorney only the court fees, even though like you I perform all evictions myself. However, what I do is add court fees to what is owed, plus a consultation fee of $150. Hopefully, you are not doing a bunch of these a year. But the bigger we get, we may have to turn this over so we can take the tax write-off properly.  

 Can it be rezoned? If so, the process is pretty straightforward. You apply to the zoning commission and at the next meeting, the council would bring up the request and approve it. Assuming no one disputes the rezoning.