Looking for a company to find a renter for me

13 Replies

I closed on my first purchase yesterday. 2 unit duplex in Memphis, TN. When I was calling the tenants to let them know of the change, one of them told me she would be submitting her 30 day notice with the Apr. 1 rent. They're on a month to month lease. I told her that was fine. Rent is WAY under market at $200/mo. I'm looking to go up to $375-$400 which is still under market but I still make a nice profit after all expenses. I don't have management co because I only have this 2 unit building. I am looking for a company now that would be willing to lease it for me but not management. Any suggestions in the Memphis area?

Can't tell you what to do but this sounds like, not to insult you, a ghetto rental. Memphis is like other cities...except it's typically at the top of murder lists...the war zone areas are very tough to rent manage in. There are a number of posters here from memphis who can help but I would strongly suggest that you pay someone to rent AND manage...if you can find them. Otherwise, your rental is likely to have a revolving door. I just had a memphis investor join us yesterday after he sold several units he had there....he couldn't keep management or tenants and the repairs/vandalism ate him up. These units always hit the 2% rule....if they stay rented....but they rarely do so be careful..happy investing!

@Shawn Dandridge where in Memphis did you buy?
Andy Luck not all areas in Memphis are war zones. I live and invest here and you just need to know where to stay away from. IMO out of state investors need someone here with feet on the ground. There are great areas within "problem zip codes" but someone who has never been here or doesn't have a local team in place here definitely has a disadvantage.

This is a ironic list:

http://m.policymic.com/articles/22686/america-s-10-deadliest-cities-2012

Dewayne,

I bought on Modder Ave off of S. Parkway. I grew up in Memphis and know the area. I would be willing to hire a property managent company but all the ones I have called have been way too expensive for just a 2 unit duplex. If you have any suggestions on a property management company and/or a leasing agent I could use to fill the unit please let me know.

@Dewayne Gammel - good point Dewayne and that is certainly true of every american city or market...same with atlanta. i am doing a 3/2 now in what some would consider a war zone but I've known the block for almost 15 years and it's solid....venture 1/4 mile in any direction and it's pure war zone. We will have about $45k in this with purchase and repairs, it will net rent...not gross...net rent for $1,000 a month and will be sold off for about $90k.

Like I said, there are a bunch of solid posters here on BP from memphis. It helps that the investor here grew up in the area...might be an awesome block but something that went for $200/mo could never be that good unless it was rented to family. Just be super careful. I think it was memphis where a landlord was recently shot to death collecting rent...or attempting to.

I would contact the local real estate investing association and see if they have any referrals for you. If you have family members who can keep an eye on it or collect the rent.....great...but most tenants in these kinds of areas don't even have a bank account so it makes collect the rent tough.

I'd look for a full service management company, you should be able to find one to do it for 8-10% plus a leasing fee. If rents are at $200/month and you still have tenants that want out that's something that would concern me.

It sounds like a rougher area and unless there's more than one Modder Ave it definitely looks like a hands on area, not something you should be managing from out of state. I'm seeing mostly ~$10k properties, there's even a vacant 4 unit one in that area listed for under $10k.

I Agree with the others. I'd recommend a PM. Im in line with @Andy Luck 's thinking. Not knowing the area I cannot say if it is or is not a "warzone" as @Dewayne Gammel pointed out there are great areas in and around rougher areas. But just based off the rental amount $200/now. Expecting $400/mo it's low income which requires much more hands on work. Also $200/mo is incredibly cheap to rent any sort of apartment to any person in any area of the country. How much work do you need to do to the unit to get it up to par to double the rent? How will you handle doing this work?

If after going through all opinions on this forum you still want to go at this one without a PM an option you have would be to hire a Realtor to put the rental on the MLS.

You will find that many management companies dont want to deal with low end rentals like this as the S Parkways area is basically in the hood.

There are not too many companies I know of who will just lease it out and turn it over to you but in that area they might be willing to.

You are a brave man to manage the home by yourself long distance.

Good luck

Hi @Shawn Dandridge

I have several properties in this area of Memphis and since you are from Memphis you know it could be very tough to manage the property out of state. I don't mind helping you out but we can't lease it and allow you manage it from out of state due to you will need people on the ground to maximize profits from your investment... Especially South Parkway 38109, 38106. zip codes that some would say are "war zones" This term makes me laugh each time I see it LOL!!! I never thought or realized that I was going into Iraq- Desert Storm when I visited my Grand Ma' on Joubert Ave, and all during the time I was attending Lemoyne-Owen College on Walker Ave.

Some people would say these areas in Memphis are good/great areas to live and own Real Estate Investment properties... 38117, 38118, 38115, 38133, 38134.. take a look what's going on in those zip codes.

http://www.commercialappeal.com/news/2014/mar/06/one-person-reported-shot-oak-court-mall/

or

http://www.commercialappeal.com/news/2014/jan/27/jewelry-story-oak-court-mall-robbed-suspect-appreh/

or

@Andy Luck here the article I think you were talking about

http://www.myfoxmemphis.com/story/23614652/man-shot-while-renovating-home#axzz2xAuxYA6R

or

http://www.commercialappeal.com/news/2014/jan/18/wolfchase-shoppers-take-cover-shots-reported/

My point is Crime and Bad People are everywhere, not just any specific locations..

Derrick,

I am very familiar with Walker Ave. I grew up on Saxon, right across the street from LOC. Great development going on in that area with LOC and Stax buying up everything they can. They are really turning things around. I will send you a message.

Great share guys.....that's the power of BP....people on the ground, in the marketplace offering advice. Love it!

Originally posted by @Shawn Dandridge :
Derrick,
I am very familiar with Walker Ave. I grew up on Saxon, right across the street from LOC. Great development going on in that area with LOC and Stax buying up everything they can. They are really turning things around. I will send you a message.

Shawn -

You are right, there are some great things going on in that area. I think this is near the Soulsville area and we'll see if the Community Lift project works as well as it should. It may take some time, but hopefully the businesses can return with the help of CL. I go to the Boys and Girls Club over there by LOC and to see what Turley did with the new housing in that area is pretty damn cool. Now the businesses need to return!

I would reach out to Revid realty. Not sure if they will rent without managing, but I do know they work close to that area. That would be my advice since they have a system and process for qualifying renters. The only other thing I would try would be to go to MIG (@Curt Davis can help you with that) and ask guys like Kevin Perk if he will share anything like his process for vetting renters. If so, you can run the ads, place a sign and have a good idea of how to properly pick a tenant for your property. Good luck with it -

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