All Forum Posts by: Stephen Kleyn

@Geordy Rostad Thanks for the suggestions. 

All units are being completed at the same time to get a better batch rate. 

Carpet for rentals in Florida is not my first choice for sure, high replacement rate and expense.

Fixall.. I've never used that one. Is that a filler that is sandable and dries flexible? If so, that could be the ticket.

@Geordy Rostad Thanks for responding.

This is a second floor, plywood on joists, that used to be tiled. During restoration tear-out they damaged some areas of the floor and then it took 3 months to get the first release of cash out of insurance so the roof was just tarped and was leaking all over the floor. The end result is some de-laminated areas and gouged areas. 

My contractor is suggesting that we cover the full floor with 1/3" ply but I just don't have the cash for that, nor the extra time needed. I have 16 units not rented since October 2018...

I have a 16 unit apartment that got destroyed by hurricane Michael 9 months ago. We are getting rebuilt but have run into a problem with the second story floors. I want to go back over the plywood with vinyl plank flooring but there seems to be some damage on the plywood, some dips and some ripped areas. I can't use any kind of a kwikset over it because it's a floating bouncing floor. Does anyone have any experience or recommendations on laying a thin insulation over the floor and then vinyl plank on top? We are over budget and three months over our timeline on repairs, and I Durance has been fighti g me the hole way... Trying to get this done as fast as possible to bring in income. Any advice is appreciated

I ended up looking for someone local. Through an REI Meetup I found a coach named Anthony Chara ($25k lifetime). He has 3 coaches under him that are cheaper ($15k). I got one of those coaches.

I'm in the process of closing on my first property now (around 30 days out) and can tell you that I'm glad I made the decision to get a coach. I have dabbled in SFH's and consider myself a capable individual but this has been a pretty intense journey. I highly recommend getting a coach.

Anthony Chara and his coaches are local but they do coach people all over the US. 

I decided to get a local guy so I could meet face to face. Turns out it doesn't make much difference.

Good luck on your investing journey!

Thanks again for the input guys. 

I agree that one of the ways to get a good deal is to go through a broker. The difficulty, as you were saying @Jay Hinrichs, is getting the pocket listings from brokers that are in other states. I am working pretty hard at it though, offering "bonuses" etc.

@Todd Dexheimer, I definitely wouldn't rule out Loopnet and the other sites though. I've got some friends that have gotten great deals on Loopnet, and other sites, even Ebay and Craigslist. Properties that are now performing really well.

A good friend of mine just went into contract yesterday on a Loopnet property that was listed by the owner. Incredible numbers on it, and a stable area.

I am working with, and being coached through a multi-family group so I get to watch everyone catching the big fish around me. Its educational, inspiring and at some times frustrating as all get out! lol

@Todd Dexheimer, Thanks for the info. Thats a great article also. I am currently focusing in on 4 of the markets you listed.

Since posting this question I've had a lot of feedback suggesting that Memphis should be avoided. I talked to a very knowledgeable CCIM holder out of Nashville and he put the nails in the coffin for me. He was explaining that the crime areas there change frequently so you're really rolling the dice with your pick. Its too bad that they don't clean up the city because it has great potential.

Looking for a solid B is an interesting idea also with the CAP rates being as high as they are. I noticed most listings on the usual's like Loopnet, showcase, CityFeet etc are all C class properties. Do you just connect with CRE brokers to find the B class?

@Caleb Heimsoth, Thanks for your input. Thats a great suggestion looking at a base rental price of $650.

@Joel Owens, I will check out Chris Clothier. Thanks for that suggestion.

I think I'll heed everyone's tone and just steer clear of Memphis for the time being.

Another occasion that I'm really thankful for the BP community!

Take care and happy investing,

Stephen

@Jay Hinrichs, Thanks so much for the input.

I understand the risks with the different classifications in each city. The reason the Memphis market is interesting to me is that it is one of the only cities that is still listed as being in the "Recovery" phase of the CRE market cycle. This leads me to question if the CAPS are just generally going to be higher there.

The second major area of question is because I've never analyzed a market with that high of a crime rate before. According to the FBI crime rate sheet, Memphis has double the violent crime than a majority of other major cities (ex. 1082 recorded violent crime incidents per 100k people in Memphis, compared to 533 in KC Metro). 

To summarize, my question is this; Are the average CAPS higher there because of the market timing for Memphis, and if so, are there any safe areas to invest there or is the whole city loaded with crime.

Thanks again for the input. The story of your friend who invested there was a little concerning!

High Crime rate, high unemployment, great CAPS!.....

If anyone has experience with Multifamily in Memphis I'd love to hear your take. I'm tempted to invest there but don't want to end up in a war zone or fighting monthly to collect payments.

Is Memphis worthwhile looking into?

I appreciate your input.

Stephen

Thanks @Jeff Greenberg for the contact. I will definitely look into Mr Kissee.

@Chibuzor Nnaji, I am currently looking into Joe and have heard some good things about him.  Do you have personal experience with Joe? If so, I'd really appreciate hearing more detail. Thanks for the suggestion.

If anyone else has a reference regarding any of the 3 that I have mentioned I would love to hear it.

Thanks again guys for taking the time to help out