All Forum Posts by: Steven Gillmer

Welcome Donna!

Welcome Paul!

@William Butler, the biggest concern that I have when buying a property with an existing tenant is I did not put them there and I so not know the property manager. You can request rent payment records and copies of the lease to help understand the quality of the tenant. Unfortunately, not all property managers have the same high standards when placing tenants and they are not very willing to share with you if they have had issues with the tenant. 

The key is ensuring you complete your due diligence. I want to see a tenant that has renewed their lease at least once and that the property manager has been holding the tenant accountable to paying on time. If they pay late every month and the property manager has allowed it, you can just about guarantee they will continue.

Ronnie, I am in Memphis and I was like you a couple years ago. I decided to not buy a turn key property, instead, I found a property manager and realtor that could also compete any necessary rehab for me, then searched for property.  Granted, this does require more cash after closing to pay for the rehab costs, which you will not have to come up with when your buy turn key. 

Another strategy I used is buying properties currently occupied with a tenant. Now there are certainly risks associated with that but you typically will be able to get a good price without major rehab costs and do not have to wait to start collecting rent. 

I would be more than happy to help if you want to talk through ideas. 

I think there is a way for you to accomplish both goals. I know my property management company will not place a tenant if the rent is 50% of their income. By purchasing a home and completing a rehab can provide a better environment than the apartment options they may have and still make a nice return. 

I would not let this keep you from investing in Memphis real estate. 

So, I have been thinking about my overall philosophy and strategy lately and wanted to get some thoughts. 

Currently, I have two properties financed that I purchased for $62k & $60k respectively and one condo purhased for $10k. Each of them are providing at least $300/mo cash flow and will just about double once paid off (except the condo which I am probably stuck with for a while).

I have been thinking that I might go one of two ways. 

1.  Move to more expensive properties in the $100 - $120k with the thought that I will be more likely to experience both rent increases and appreciation. This will mean that I will need to slow my accumulation. 

2.  Move down to cash properties in the range of $30k that I can get rehabbed for under $10k. This will mean more immediate cash flow and possible equity from the start but likely not much increase in rent. 

What strategy are you using and what do you think about these two options? 

I really like the local sub category. Anything that saves me time is good. 

Welcome @John R., I am new as well to the site but not to investing. Raleigh is a beautiful city and a big upgrade in my eyes to DC.

 Curt, I lived several places; Pearland, Fulshear and then Spring. I wish I would have been accumulating properties there years ago. Oh well, I am in one of the best rental markets in the country now so better late than never. 

Hello all! I am glad that my buddy referred me to this site and I am looking forward to learning a ton. I am from Houston, TX but have been in Memphis for the past three years and this is where I started my real estate investing. I currently own two single family homes and one condo and I plan on buying at least one house a year to make my retirement nice and comfortable. Let's all make a bunch of money together!