All Forum Posts by: Walter Jones

You won't go wrong with Memphis Investment Properties if you're looking for turn key. 

I house hacked a 4-plex when I got started, but I'm an empty nester and it worked well for me. I also had a W-2 job at the time, and used my FHA 3.5% down payment to get the loan. You can get up to 4 units with your FHA 3.5% if you could find a 2-4 unit multi to live in, but the numbers may still work better in the Midwest or Southeast.

Quote from @Caleb Parr:

Derek Groves w/NPI 901-283-9209

Asher Murray w/Murray Home Inspections 901-619-2405

 Good to know! I like the guy I've used in the past, but I've been looking for someone that's more investor friendly.

Quote from @Tyrese Goldsby:

Quote from @Alex Evans:

Welcome to BP! If you ever come across any deals in Memphis send them my way! 

I've been very interested in the neighboring markets that border Atlanta. Once I become more familiar with my market, Memphis sounds like an excellent place to go next!

 Memphis! Add me to your list here. Also I'm happy to help you identify areas and evaluate properties here.

Memphis! I'm pretty sure all the other markets mentioned are great, but I'm biased also. Great cash flow in Memphis, with decent appreciation. I bought a duplex and 2 single family homes here in 2022 to add to what I already have. Happy also to help anyone that needs some boots on the ground here.  

 It's really great to hear stories of how quickly people got the ball rolling on this and I appreciate all of the great feedback.  I love the idea of househacking but we already have a home we really love so it would be hard to give it up to start out that way.  My thoughts are to HELOC or hard money my first investment but feeling a little uneasy about the risk.  My confidence grows every day as I read all of the success stories!

If you can get good hard money terms I would do that and keep the HELOC for other repairs and unforeseen things, and other opportunities that come along. (Assuming you want to rehab a property, and potentially flip it or BRRRR it for a long term hold.) Nothing wrong with paying asking price for a nice MLS property and use a conventional loan if the numbers work for you. I usually start my filter with 1:1 ratio, and adjust up or down depending on where the property is, but 1:1 is difficult to find in some markets.

As much as I'd love to turn the clock back and start my real estate investing in my 30's or 40's, I'm grateful for what I have, and it helped soften my transition from W-2 (back) to self-employment when I was a casualty of the pandemic layoffs.

I got my license the 1st time in 2007, but obligations at the time, and a bankruptcy due to a failed business in 2008 forced me into a relocation and W-2 employment. I gave up my license, but resolved to be active in real estate when I could - I still delayed too long, and didn't believe I could do what I now know I could have done. I was in my 40s at the time

Fast forward to 5 years ago - at age 54 I bought a 4-plex in Memphis and lived in it for 2 years while I purchased 2 more duplexes, then a small single family for myself. During the pandemic I flipped an off-market 5-plex, and made a cash purchase of a below market cash flow single family, following it up with 2 more single family homes and a duplex in 2022.

I'll be 59 tomorrow, and I could survive on my current cash flow. My real estate license is a means to an end now, and although my niche of working with investors isn't as lucrative as being a heavy hitter residential agent, I enjoy what I do, I get to work with people that I can help, and they help me sharpen my skills and knowledge of the Memphis market. It's fun to look under rocks together. I still miss the W-2 pay and benefits sometimes, but I don't miss the work, and I rarely wake up to an alarm clock.

Best of luck to you @April Tsotsos! It's never too late, and we can do this as long as we're able!

Another vote here for Memphis! Solid economy. Easy to hit the 1:1 price to rent ratio in the 80-130K price range, and sometimes higher. Rents rose in step with the pandemic price increases. Decent but not bubble-like appreciation. I don't anticipate a big negative price correction for 2023. I bought 3 here this year. 

Hi James. I'm still vetting him some, but I've used Benny Keys on a few smaller jobs, and we're looking for a bigger project for us to flip or BRRRR. One of the things I like about him is that he doesn't drive a 50K truck, and he is a hands on GC, so he's on-site doing the work also. I've been pleasantly surprised with the costs of the couple light jobs he's done for me, and for one of my out of state clients. 901-335-8677. Make sure you tell him I sent you.

I feel like a good overall GC (that doesn't drive a 60K+ truck lol) has been my missing puzzle piece - I already have a good HVAC, plumbing, electrical, appliance guy, but drywall, flooring, etc. isn't something he likes to do.

Good luck. Memphis is a great place to invest.

Walt

I like using Millennial Title with out of state investors due to them being the cheapest I've found, and they do lots of remote notaries as needed. Ruth Kerr is pretty much a one-person show in Memphis, with other US offices that she is connected to.  https://millennialtitle.com/

Foundation Title is good too, as well as Apperson Crump, Delta, Sure Title.

Investment Info:

Single-family residence buy & hold investment.

Purchase price: $55,000

Purchased as part of a 2 property off-market acquisition. House needs some work I may flip it in a few months. 1200.00 tenant there so there's no hurry I'm enjoying the cash flow

What made you interested in investing in this type of deal?

Part of a 2 package deal that included a duplex that I really wanted. Seller may sell 2 other duplexes with seller financing in 2023

How did you find this deal and how did you negotiate it?

Direct mail letter. Spent 4-5 months communicating with seller before they decided to sell it to me

How did you finance this deal?

Hard money with cash back at closing.