Rental Property Investor · Mission Viejo, CA · Member since 2014 · 230 posts · 113 votes
Bought a duplex in Memphis with two 3bd/1ba units, nicely rehabbed, from a turn-key "passive" investment firm. The units are going for $650 each and the market is around $750. I have not had a tenant in either unit since purchase (over 6 months ago). I am in the process of trying to find a third property management firm. I am desperate here and not quite sure what to do. Reduced price to $595 per unit but still no tenants. Any suggestions.
Here is an update for you and the BP family on the duplex/townhome that you have here in Memphis. I know you were having such a hard time with the last PM and a lot of naysayers were giving you a hard time and or telling you to cut your losses....
GREAT NEWS- :))))))))
I rented 3420 Bruntonwood Cove to a mother of 4, a Section 8 tenant for $797.00 she has moved to Memphis from Connecticut to be closer to her family. One down one to go hopefully I will have the other side rented for you before the end of the month... Keep your head up everything is going to be just fine as @Melodee Lucido would say!! LOL!!
Real Estate Investor · Saint Petersburg, FL · Member since 2013 · 1k+ posts · 951 votes
11y
I guess you better give your PM a call right away and figure out who is living on the one side. Maybe they rented it and there has been a lack of communication. With vehicles there it doesn't really seem like squatters but who knows.
Kudos to Derrick for heading over there to check out the property condition, a lot of great people on this site.
I have only been using this site for 10 months now.. and I am amazed at how people can really get helped like you did today.. Of course not a lot of people working today :)
But seriously .. many in your shoe's would be completely lost.. and the outcomes many times as Ben mentioned are not as positive as what has happened here today.
As I state you got to the one person in that town that can probably help you and at least is obviously willing to even go to the property... Many would not be. ( well most)...
for long term though from my point of view I would see if Derrick can get these stabilized and if you can get any kind of consistent cash flow once up and running and consistent you may wish to part with them and move to a better asset class... You don't have to change cities but buy the best you can not the cheapest..
Here is an update for you and the BP family on the duplex/townhome that you have here in Memphis. I know you were having such a hard time with the last PM and a lot of naysayers were giving you a hard time and or telling you to cut your losses....
GREAT NEWS- :))))))))
I rented 3420 Bruntonwood Cove to a mother of 4, a Section 8 tenant for $797.00 she has moved to Memphis from Connecticut to be closer to her family. One down one to go hopefully I will have the other side rented for you before the end of the month... Keep your head up everything is going to be just fine as @Melodee Lucido would say!! LOL!!
Real Estate Investor · Memphis, TN · Member since 2014 · 156 posts · 101 votes
11y
Way to go @Derrick Craig! I am so glad you were able to help @Bill Manassero get approved to accept Section 8. Knowing that neighborhood, I thought would be the way to get tenants and you made it happen.
..... One of the many reasons I love Bigger Pockets!!!
Investor · Tampa, FL · Member since 2014 · 12 posts · 8 votes
11y
All - that is the way that you hope business will be done. Way to help out a fellow BP'er. Kudos to @Melodee Lucido and @Derrick Craig for helping to get that place rented and to the other folks on this thread for adding their 2 cents.
Tauranga, Bay of Plenty · Member since 2015 · 13 posts · 3 votes
11y
Originally posted by @Jay Hinrichs:
I wrote an E book for Aussie investors that were getting the same type of treatment you have gotten from marketing companies.. I would be happy to send it to you.. It will give you some guide lines and things to watch out for when you can't be here.
Woops, not sure if this went through or not before but will try again anyway. Hey Jay, could you please flick me a copy of that E book. I am sure it will have some gems of advice for this kiwi heading over in July to check out property. [email protected] Cheers T
Investor · Antioch, CA · Member since 2013 · 79 posts · 58 votes
11y
I'm coming to this thread quite late. Just read through all the posts. I learned A LOT and am deeply touched by the support —both virtual and on the ground—that was rallied for Bill. I'm so proud to be a part of the BP community! Yay!
Rental Property Investor · Mission Viejo, CA · Member since 2014 · 230 posts · 113 votes
11y
Great news! We booked our second tenant at $650 on a one-year lease to a young couple with solid income, excellent credit background check and a good renting history. Now, my duplex is completely booked up at a higher income than I would have ever projected. Wow, what an education I've had!
For those of you have been following this saga, it has been a wild ride but a great lesson for newbies (like me) and vets alike. As you scan over the responses I have received you will see they range from ”dump the property at a loss” to a lot of helpful suggestions and tips.
In summary, I purchased a “tenanted” duplex (3/1 on each side), nicely rehabbed, from a turn-key company based in Singapore. Shortly after escrow, my two “in-place” tenants “conveniently disappeared." The turn-key fortunately had a 6-month rent guarantee so I didn't feel the full hit -- at least not at first. Now, I know what you’re thinking – TWO RED FLAGS: turn-key out of Singapore and 6-month rent guarantee! OK, have some grace. I’m a newbie!
Anyway, the “in-place” property management firm also quit shortly after escrow. The turn-key’s “on the ground” people highly recommended another PM who ended up being “less than pro-active,” never visited the property and whose idea of marketing consisted of lowering the rent until “someone bites.” After 4 months, I was concerned and started shopping for a new PM. Most didn't even want to touch the property because it was in “the wrong part of town.” Rent was lowered from $750 per unit to $500 and there were still no prospects. It was at this point that, out of total frustration, I logged onto BP’s forum and wrote “Desperate in Memphis.”
Immediately, I started receiving a flood of comments and advice from a high level of experienced investors. Most of the comments, however, were leaning toward “dump the property now at a loss.” I was discouraged but listening and willing to do whatever was necessary. However, I’m more of a “half-full” type guy so, although the “half-empty” crowd had some great points, I knew that there was more than one way to view this problem. I strongly felt that although this may not be the best area of Memphis, people still need a decent place to live and if there was any way to keep this property I had to find out.
There were also a few BPers who were encouraging; one in particular from a veteran in Memphis named @Derrick Craig. His comments consisted of practical advice to help get the property booked. He didn't see the property as a “total loss.” He was a “half-full” guy like me AND he lived in and knew the Memphis market well. He understood property management (he owns a property management firm), turn-keys (he also owns a turn-key company) and he especially knew the area where my property was located (he grew up in a similar area).
I started checking around and spoke with other BPers who knew Derrick and asked what they thought of him. Each person had only the highest regard for his character and professionalism. And usually their comments followed with, “if you could get Derrick to handle your property your problems would be solved.” I found out they were right. I also found out he was also a big Patriots fan.
I contacted him offline and, after a number of conversations, he agreed to work with me. My current PM wasn't too thrilled but that’s life. My PM reluctantly released the property “without penalty” and Derrick jumped right in. Before I even officially hired him, on his own initiative, Derrick went to the property, took notes and pointed out a number of issues of concern, including the fact that a squatter had moved into one of the units. I knew at this point he was a mover.
I hired Derrick January 5. By January 13 I had a section 8 tenant in one unit with a potential rent of $797. By February 11th, I had my second tenant in at $650. Gross rent of $1,447! I moved from “Desperate in Memphis” to “Deliriously Ecstatic in Memphis” in less than 60 days! Praise the Lord! Thank you BP. Thank you to all who took the time to offer their advice and suggestions on my post. And a big thanks to @Derrick Craig – Rock Star from Memphis! (Don’t move to Graceland!)
In summary, here are a few of my lessons learned:
BiggerPockets is an invaluable resource that EVERY investor should be utilizing extensively!
Property management is NUMBER ONE for the Buy and Hold crowd! Never settle without carefully vetting your property management prospects before hiring.
Best turn-key companies are those with offices in the areas where you are buying.
“Half-full,” rose-colored-glasses investors can still survive and thrive in real estate.
Build up a great team of advisers, mentors and colleagues. I made some great contacts and friends through this post!
Never give up! No matter how discouraged you get. Miracles still happen!
Real Estate Investor · San Antonio, TX · Member since 2014 · 785 posts · 190 votes
11y
Bill, I really hope you find tenants soon, I don't rent property so I'm not much help on that. Other guys on this thread obviously are very knowledgeable.
In future deals, may I suggest you at least look into owner financing properties? I do not know Memphis, but there are good, cheap markets in the US where you can find good owner finance buyers who maintain the house for you. That's what I do with all my properties. It is so much preferable to renting houses, in my case, I cannot tell you!
You have to find good buyers with jobs and documented income and at least 5k down. But it works, and if you do it right, you get 700 or 800 bucks per month into your account and you don't have to worry about maintaining anything.
There are many threads about owner finance and the SAFE Act on this board.
I am a bit of an evangelist for owner finance because it has worked so well for me, after I did rentals for 5 years (nightmare). Best of luck!
Are your property in a war zones, someone murdered there, a dope house, and have very bad element for neighbors. Craigslist has always plenty of prospective tenants. You can also use Backpage and Pennysaver. You can get in contact with Section 8. What is reason they are not renting?
Lower the price and you may have some war combantants move in............lol. I saw on tv memphis is on heavy gang action zone. Good bbq too.
Ridgewood, NJ · Member since 2016 · 3 posts · 2 votes
10y
For those of you following this forum post, Bill Manassero is the guest in today's BP Podcast 191 and this particular incident got mentioned. Thanks @Bill Manassero for inspiring us and for all the good deeds you've done to the less privileged children.
