All Forum Posts by: Scott Armantrout

@Danielle Wolter my research so far is in line with what you said.  We've lived just outside of Memphis for a few years now.  Multifamily units in our price range do tend to be in rougher neighborhoods.  We may look at slightly smaller multifamily properties (duplexes).

Ike,

I've not yet purchased any multifamily units in Memphis, but I am in the market for similar properties in this location.  If you learn anything let me know as well.

What are the pros and cons of purchasing a property that currently has a section 8 tenant in place?

@Frank Patalano even though I own two rental properties now, I’m fearful of diving in to investing with intent. You see, I lived in those homes then rented them out when I moved away, during my military days. I have my eyes on a duplex and the initial numbers look good. I guess I’m just fearful of overpaying because we’re not overly familiar with the area.

Recently found a duplex listed for $75,000 that is currently occupied and $1284 in monthly rent.  A similar duplex one block away sold for $53k in April of this year.  It's been on the market for just over 80 days.  The listing agent claims no repairs needed.  Of course and inspection would make it clear if that were true or not.  I'm considering coming in at $63k.  Deal or no deal?

Thank you Nakia.  That is the strategy, I though would be most effective.  I think that an agent could make up for my lack of knowledge about the city too, being that I'm not a native of Memphis.  I'm familiar with some but not all of the neighborhoods that are on the rise.

Let me start with a little background.  I currently own two rental properties, but neither property was bought with the notion that it would be rented out.  I bought and lived in my first property in 2006, and when it came time to move (I was active duty Army) in 2008 the housing bubble had already burst and there was no way for me to get out of the property without losing money.  My realtor suggesting renting it out and shortly there after it became my first rental property.  I had my second house built near Fort Leonard Wood, MO, in 2010.  I lived in that home until 2017.  I figured if I could rent one out, why not two.  And it's been a rental ever since.

Why does this matter? Well I never bought a property with the mind of an investor. I bought properties that I intended to live in. Now I'm retired from the military and want to be intentional with my real estate investing. The process of buying and finding a good property manager aren't a mystery to me. I'm very interested in how seasoned investors locate target homes for buy and hold, more specifically BRRRR strategy homes. Zillow, Trulia, Realtor.com and the like are great when looking for a home to live in, but I feel like by the time many homes make it to those sights, the investment property deals are already gone. How are you sourcing your deals? Do you have an agent sorting through listings, are you driving the neighborhoods yourself. Let me know what your methods for locating properties is.

I’ve found a couple homes that appear to have water damage. One looks to be a leaking roof despite it being a reasonably newer home. The ceiling is falling in in one spot and moisture seems to have create a mold problem, locally around the leak. Most of the house appears to be in decent shape. Fixture and appliance updates, and some basic landscaping are the bulk of projects outside of that damage. Is this getting too deep into a rehab budget to make brrrr work?

I've held rental property since 2008, but that was more out of necessity than it was a deliberate investment move.  I have a property in Martinez, GA and a property in Saint Robert, MO.  I lived in both properties before renting them out.  These days I'm retired from the Army and about to complete my Business Admin degree.  I am eager to soak up as much I can and begin purposefully investing in real estate.  Analyzing deals and creative financing are two areas of particular interest to me.