First Investment Property - Turnkey in Memphis, TN

11 Replies

Investment Info:

Single-family residence buy & hold investment in Memphis.

Purchase price: $122,500
Cash invested: $32,000

I bought this through a turnkey provider earlier in the year and am just updating my profile with it now! Excited to be in the game and was a huge fan of going turnkey for my first deal. I'll likely keep buying turnkey to keep my deal flow coming, but also look for more value add deals as I become better at this.

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

I am investing for cash flow and the Memphis market for single family homes is great for this. I went turnkey to make my first purchase a bit easier, especially out of state, and to get a recently renovated home with lower likelihood of major repairs needed in the early years of ownership.

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

I found a turnkey provider through a referral. They don't negotiate prices but align them for investors to begin with. I just simply waited until the right deal was listed on their available properties and made my move.

How did you finance this deal?

Convention loan with 20% down

How did you add value to the deal?

N/A

What was the outcome?

So far so good! Cash flow is coming in!

Lessons learned? Challenges?

Working with a good turnkey provider makes buying your first property a breeze. You still need to be careful and do your due diligence, but if you trust who you are working with it can be a great way to get started and to continue to have a consistent source for deals.

Did you work with any real estate professionals (agents, lenders, etc.) that you'd recommend to others?

Peter Skaggs at innovativerates.com was my lender and he is great!

Jake I'm working on a property now in Memphis that should be finished in the next 60 days. Zip code 38134 (suburbs). Looking to sell it either to a home buyer to move in or invester looking to add to their portfolio. 140-150k APR. rents in the area go for about $1200-$1400

Originally posted by @Martin Shaw :

Jake I'm working on a property now in Memphis that should be finished in the next 60 days. Zip code 38134 (suburbs). Looking to sell it either to a home buyer to move in or invester looking to add to their portfolio. 140-150k APR. rents in the area go for about $1200-$1400

I also use my TK provider as my PM and they don't take on properties they didn't rehab. So right now I'm not really looking outside of what they have to offer, but that may change in the future and I am willing to connect and discuss this further if you'd like!

 

Originally posted by @Arash Vakil :
Originally posted by @Mark S.:

Congrats, @Jake Fahey.   Who was your TK provider in Memphis?  

Also interested in this! 
  

I used Memphis Investment Properties (MIP) on this deal. Mark Hart, from MIP, can be found on BiggerPockets - he was my main point of contact on the buying side.

From purchase through the first 6 months of ownership on this one property I have only good things to say about them. I'm hopeful they will keep up the good work for the lifetime of my investment, but obviously don't have first-hand experience over a long timeframe, so keep that in mind.

If you do get as far as buying a property with them, they do pay referral fees so I would appreciate it a lot if you mentioned my name to Mark if and when you first connect with him! But either way be sure to do your own due diligence on them and on their properties, per usual.

 

Jake no problem. I’ll connect once I’m closer to being finished on the property as I’ve just acquired it. And while I understand,  I wouldn’t let a good deal pass me by just because my PM doesn’t’ take on other properties. As I’m sure you have seen on BiggerPockets there are a ton of reputable PM’s here in the Memphis area that would manage a property that’s not their own. Just something to think about. 

Thanks for sharing your experience, Jake. And congrats on your first investment! 

What made you decide to invest out-of-state (assuming from your profile that you are from Colorado)? And how did you settle on Memphis, TN?

I have a great turnkey provider team for Memphis market. We have a bunch of properties coming up. Let me know if anyone would like to get connected. 

Very cool!!!  Thanks for posting this, I have never done a turnkey rental but this piques my curiosity... 

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