Mid South Home Buyers - Has anyone ever done business with this company recently?

[Alston Ke]

There are some posts many years ago about MSHB I'd like to know if anyone is buying any investment properties from them recently and your overall experience with Mid South Home Buyers.

[Mark S.]

Quote from @Nithin Thampi:

I’m interested in learning more about your guys experience. I recently learned I’m going to on the top of the list. Any recommendations on zipcodes to choose and how to decide which property? Also how accurate is the cash flow to the examples on their website? Any specific bank I should use to get preapproval?

 Cash flow is probably about 1/2 of what they advertise.  You really need to run your own numbers.  Lately (as in the past 2 years or so), cash flow numbers are quite slim.  I keep getting emails from them daily and am looking for an excuse to pull the trigger, but keep finding the deals don't pencil.

As for zipcodes, check out the Investor's Guide to Memphis Real Estate podcast (presented by Crestcore Realty).  They do an annual show on zipcodes which is pretty spot on.  About all they're good for in my opinion - I've reached out to Dean multiple times and crickets.  One time he put me in touch with another person on his team who didn't listen at all to what I was looking for.  Ended up unsubscribing from their list.  

Example MSHB home that got emailed to me today in 38118:

Purchase Price: $199,300
Rent: $1,575/month

4BR / 2BA, 1,800+ sq ft.  A bit larger for a rental.  Probably towards the top end of their purchase price and rent range.   

They advertise cash flow as $517/month.  After entering in 8% PM fee, estimated insurance premium, etc., WITHOUT ANY OTHER MAINTENANCE/REPAIRS/VACANCY, I get about $283/month cash flow (that's on a 30-year fixed, 6.50% rate, 25% down).  Once I put in 8% vacancy (which I also use to cover their $200 annual lease renewal fee, turnover costs, etc.), 5% maintenance, 5% cap-ex, that brings the cash flow to breakeven.  $0.

After using PVA website for city and county taxes based on the purchase price they're charging the investor and inputting the likely future property tax figure based on the new (higher) purchase price, this brings the monthly cash flow to -$153/month.

So, put almost $50K down + closing costs to take on $150K debt and lose $150/month.  Sign me up!!!  lol

Not to mention, I have a property about 3 blocks over from this one that I bought for $84,000 back in the day that rents for $1,335/month on a 3.75% (30-year fixed) mortgage.  I like the cash flow on this one a lot better.