Investor · Memphis · Member since 2020 · 18 posts · 5 votes
6y
I agree with @JamesMartin. It's pricey, and (for me) even if it's turnkey it's still a little pricey. You can dig through and find a solid deal here. Proceed with caution.
Investor · San Francisco, CA · Member since 2015 · 302 posts · 206 votes
6y
Ah that is so cheap!
a couple things....
Make sure you can get a loan that is that small. I think a lot of banks have minimum loan amounts. Check with lenders.
The listings on Redfin and others that only show one picture do that for a reason. There's a good change there's a disaster in there.
A property that cheap may have some serious defect. Make sure a good and reputable inspector does a thorough job.
You are inheriting tenants that pay 620 and 390 in rent per month and as the listing says, do not want to be disturbed. While I'm not implying that 620 and 390 necessarily means a certain kind of tenant I do mean to say to be careful and prepared about what you are walking into and who you are inheriting over there.
And finally, keep in mind that things that cheap are cheap for a reason, you'll find that reason if you look hard enough. Better to find it before you buy rather than after.
Investor · Memphis · Member since 2020 · 18 posts · 5 votes
6y
I agree with @JamesMartin. It's pricey, and (for me) even if it's turnkey it's still a little pricey. You can dig through and find a solid deal here. Proceed with caution.
Accountant · Memphis, TN · Member since 2016 · 45 posts · 39 votes
6y
With that class of property, i.e. rental rates ~$500/month, your property manager is going to make or break the deal. One bad tenant turnover and you could have to put the equivalent of an entirely new down payment into the property with nothing to show for it. If you have a property manager lined up already, then get their feedback on the location and condition of the property, and if you don't have a PM already, I would start there. This type deal is not uncommon in Memphis, and out of state investors get burned when they focus on the paper returns and don't realize the unique challenges presented by the tenant class.