@Michael Kay  Mike, the RE game is much like every other market (casino) you want to "get IN and back OUT (before sitting along the sidelines and watching the fireworks drama, from a leather easy chair... until AFTER the CHTF again, before going back to work BUYING... at a hefty 'discount!') 

I have a problem tenant that we inherited from a purchase.They are causing drama, breaking things and trying to blame it on weather or break ins. 

The turn over is high and Tenants here will have a lot of drama unless you get someone that works in the strip casinos to rent your house bc they usually keep up with the rent.

Currently in excellent condition with new roof, paint etc.The numbers: Cleaning and maintenance 2518; repairs 30287; supplies 1680; capex 14,000.Again this is over 20 years current numbers play out a little higher. 2518+30287+1680+14000= 48,485/20 years = 2424 per year or 202 per month.This property has little turnover with one original tenant and generally gentle tenants with perfect credit and no drama. 

I had to them file a formal reply... and tell them I was looking for a broker and I had never brokered a loan myself in their state.. they just wrote me back today case closed but If I ever broker a loan in NV without a license they will no doubt come down on me harshly.

I'm not trying to be harsh but this is really a very important step for this market...

Caution as an out of state investor buying a 40k rent ready in Memphis. ( or any big city for that matter)... you want to be at the top of the rental range as an out of state investor not the bottom.. too risky unless its your life's work and your going to roll up your sleaves and deal with the tenant drama that comes in those price points..

It seems harsh up front but taking it seriously and spelling it out and laying it all out is the best way to show respect and professionalism.

As soon as they have done it for years even doing well they take the equity growth and pay down and sell off and 1031 into better quality SFR and tenants for less drama or multifamily or commercial, etc.

Honestly, it’s also harsh and less pretty.