Southern California · Member since 2019 · 27 posts · 6 votes
I have a property under contract (Buy and Hold conventional loan) in 38111 Cherokee, a couple blocks from where the 78 meets the 240 on Railton and Parker. The street itself doesn't have many properties worth more than $65,000. However, it looks like blocks surrounding this area have houses close to $100,000. Do you recommend investing in this area? Is it more of a C or D class neighborhood? Looking to make some cash flow. This would be my first real estate investment.
Property Management · Memphis, TN · Member since 2009 · 667 posts · 362 votes
6y
We manage several homes in this area. Actually, we’ve been able to secure leasing doing the rehab phases on a few homes over the years. I actually like this area but I’m sure others will charm in with their expertise.
Southern California · Member since 2019 · 27 posts · 6 votes
6y
@James Martin Hopefully I’m able to have the same luck. Do you typically provide a refrigerator, stove, washer and dryer for tenants? Or let them bring their own? What has worked best for you?
Southern California · Member since 2019 · 27 posts · 6 votes
6y
@James Martin Gotcha. And can I start marketing the property for rent once I have it under contract (with the understanding it won’t actually be leased until after closing)?
Property Management · Memphis, TN · Member since 2009 · 667 posts · 362 votes
6y
Personally I like to start marketing the home 3 days of it being completed. I put my best foot forward with price, curb appeal and calling potential clients during the preleasing to schedule showings. In the world of today with so much advertising I want to keep their attention and hurriedly get showings scheduled. Keep in mind others may do the total opposite of what I recommend, but that’s what separates us. I like the idea of potential clients running into one another when one is leaving the property.
James, if you come across small multifamily in 103-105 zips let me know.
I surely will Joseph!
I see so many multis 20+ units in Memphis available and on the market for years. A few of them straight out vacant. Its reminding me of Detriot. I am assuming all of them are in rough neighborhoods.. Will anyone take a chance on these?
James, if you come across small multifamily in 103-105 zips let me know.
I surely will Joseph!
I see so many multis 20+ units in Memphis available and on the market for years. A few of them straight out vacant. Its reminding me of Detriot. I am assuming all of them are in rough neighborhoods.. Will anyone take a chance on these?
We actually manage a 20 unit at 139 North Claybrook, 4 plex at 593 Ayers and a 5 unit at 301 Pauline Place. The reason why I’ve specifically mentioned these units is because one there owned by a family friend and (2) in a area where crime is very challenging. The first set we renovated was Pauline Place. Previous rents were $350 a month. After rehab the new rental amount was set to $700 a month. We’ve practice this with several other of our multi family clients and found that the most important factor in the rehab that enabled us to up the rents was to install wrought iron fencing, security cameras, new parking lot and key card access. Currently, we’re doing the same at 139 North Claybrook. Each of these units are close to Downtown and the Medical Districts. If you purchase any of these units in undesirable areas I would make sure that a college is nearby or in the MidTown or Downtown area.
James, if you come across small multifamily in 103-105 zips let me know.
I surely will Joseph!
I see so many multis 20+ units in Memphis available and on the market for years. A few of them straight out vacant. Its reminding me of Detriot. I am assuming all of them are in rough neighborhoods.. Will anyone take a chance on these?
We actually manage a 20 unit at 139 North Claybrook, 4 plex at 593 Ayers and a 5 unit at 301 Pauline Place. The reason why I’ve specifically mentioned these units is because one there owned by a family friend and (2) in a area where crime is very challenging. The first set we renovated was Pauline Place. Previous rents were $350 a month. After rehab the new rental amount was set to $700 a month. We’ve practice this with several other of our multi family clients and found that the most important factor in the rehab that enabled us to up the rents was to install wrought iron fencing, security cameras, new parking lot and key card access. Currently, we’re doing the same at 139 North Claybrook. Each of these units are close to Downtown and the Medical Districts. If you purchase any of these units in undesirable areas I would make sure that a college is nearby or in the MidTown or Downtown area.
Appreciate your input. I notice several of the listings are close to downtown so at least it has that potential.
Seems it is worth every penny to install security cameras and fencing to be able to raise the rents 100%
Property Management · Memphis, TN · Member since 2009 · 667 posts · 362 votes
6y
It was a hard sell convincing them to spend the money especially when I presented them the roof quote, but the demand for housing is great in the Medical District. So we’re now waiting on approval for fencing at a 68 unit we mange on Stribling Street which is close to the university. Now, these types of purchases and renovations should only be completed by investors who really have the capital and stamina. I would not advise this for anyone who’s new to the multi family or commercial real estate. Once you crack open them walls code will require updates. I forgot to mention that the insurance rate dropped on Pauline once we updated the roof, railings, parking and electrical panels.
Investor · Memphis, TN · Member since 2016 · 549 posts · 286 votes
6y
@James Martin I can only imagine the look on their face when you gave them the roof quote, I have seen few quotes for multi units and wow is all I can say.