All Forum Posts by: TJ Sayers

These are 2 completely rehabbed properties in Birmingham, AL. 

1731 Mountain Drive:

Scope of Work- Complete Rehab. New Roof, New HVAC, Refinished Hardwood floors, new fixtures, new interior and exterior paint, new GFI's and smoke detectors. 

Lot Size- 50x173

House Size- 1262 sqft. 

1041 Linthicum Street:

Scope of Work - Complete Rehab. New Carpet throughout, new interior paint throughout, serviced HVAC (less than 5 years old), upgraded exterior electrical panel with weatherhead, upgraded GFI outlets and smke detectors. 

Lot Size - 58X170 sqft

House Size - 912 sqft

For more info on these properties please contact TJ at (205)260-7007. We also have other properties available. 

Sara,

*** Disclaimer - I am a turnkey provider in Birmingham- but I won't try to sell you. The good/bad zip codes depend on what type of property you are looking for. Are you looking for B and C properties? I have found that the zip codes most investors really like at 35023, 25215 and 35235 - among others. These zip codes are B and C neighborhoods, varying street to street. Rents in these areas are mostly $700-$850 for a 3 bedroom 1 bathroom home. You can usually get a 10%-12% net return in these areas. I have never dealt with Birmingham Income Property, LLC. If you would like more detailed information about our market, or if you have specific questions feel free to contact me.

Thanks,

TJ Sayers

Thanks for the reply @Jonathan Mednick. I didn't realize that you bought turn keys. What areas do you buy in?

Let me expand on my question... Even on a property that has been rehabbed before the tenants move in, it will still usually need paint and carpet when the tenant vacates. My point is that any time a tenant moves out there are going to be deferred maintenance repairs. From my experience I would much rather have a property that is in good condition with a long term tenant than a newly rehabbed property with a brand new tenant. We screen our tenants extensively, but having a proven tenant that has been there a while (and takes care of the place) is a very comforting feeling. 

We have "wholesaled" several of these houses in Birmingham with long term tenants and our clients have been very pleased with them. The key is to be very up front with the buyers on exactly what they are getting. We even have third party inspections in case there is anything we miss. 

I have several questions for investors buying turn key properties (specifically in Birmingham, AL). My company does about a 50/50 split between wholesale properties and turn key rentals. We own 45 rentals in Birmingham and all are located within a 3 mile radius of our office. We know the value of having a long term tenant, and also the value of having few repair and maintenance issues. 

1) What is more important- a long term tenant or a recently rehabbed home. For example, we have recently purchased a property with a tenant who has been in place for 8+ years. Section 8 pays most of her rent and she does not want to move. We have done some exterior upgrades to the property (painted exterior, replaces a few pieces of rotten wood, demolished an old building), but the inside has not been "updated" for several years. The inside of the property is neat and clean but it's lived in. Would this type of property be attractive for a Turn Key Buyer? Since the tenant has been in place for so long, as a landlord I would love this property. However, if the tenant moved we would need to paint interior, replace carpet, and do general maintenance and repairs. 

Compare this to a property in which we bought vacant and did a complete interior and exterior rehab, but the tenant is qualified but not established. 

Any and all feedback on this is very much appreciated. 

Sorry for the delayed response. I have been doing a bunch of small wholesale deals for the past 3-4 months. I did my first deal in December of 2013 and had a dry spell for 3-4 months. In the past 3 months I have done a lot more deals. I have partnered with a friend of mine who has been in Real Estate for 20+ years. He has taught me a lot, and we have learned several things about wholesaling together. We did 5 deals in May and will end up with 7 or 8 in June. Again, these are really small deals but if we can keep getting this many it will be great. Plus, eventually we will most likely come across a BIG deal.

TJ

Are you guys still having the BP meetings? I know J, but have not met anyone else on the forums yet. I am definitely interested in attending these meetings.

I have spent 3-4 hours a day for the past 3 days at the courthouse looking for probate leads. I am not having any luck. I have not found one lead because I am struggling to learn the system at the courthouse, and exactly what I am looking for. This is getting very frustrating for me. I do not want to pay for the probate leads, but at this point it is looking like it may be the only option for me. Does anyone have advice on finding these probate leads?

Also, I bought a list from list source a few weeks ago and I cross referenced the leads to the county website. Probably 40% of the leads were old, out of date or just wrong. Is this typical?

Any advice on finding leads would be very much appreciated.

I am looking to wholesale the property.

I found a house with an ARV of 36000 and the lady wants 15000 for it. She said that the house has flooded and it is in a flood plain. Is this worth taking a chance on? I do know that flood insurance can be very, very expensive. The seller told me that the house was flooded almost up to the electrical outlets. For something like this, I have no idea how to estimate the cost of repairs. I would expect having to replace all electrical, drywall, plumbing(?). I am scheduled to go look at the property on Thursday, but I'm not sure how much I will be able to estimate repairs to give her an offer.

Birmingham, Alabama