Midsouth Home Buyers. Should I invest with this Memphis turnkey?

29 Replies

Hello everyone. Thanks for all the replies, and it is really good to hear people have had good experiences with them. 

@Daniel Mills , appreciate the the thorough explanation, and I'd really love to take a look at you real numbers, and even use the spreadsheet you are using to analyze my future deals. By the way, I was already on their wait list before I posted this, so, I don't think it I can get you the referral bonus! :)

@David Gotsill , thanks for the tips, specially on the common issues you found. I'll keep in mind to always have some reserves for if/when they arise. Also, for the eviction process, how long did it take, and what were the costs you incurred? (besides the unpaid rent).

@Marco Santarelli , I'm a new real estate investor, and from my research, Memphis seems like a stable enough market to lower my risks (please, correct me if I'm wrong), and they offer properties in the price range I'm currently willing to invest. That, associated with the good reputation Midsouth Home Buyers has, it seems like a relatively safe bet for a beginner that wants to get the feet wet. That said, I'm also looking of what they will be offering in Little Rock.

@Chris Clothier , it is good to see that even the "competition" has good things to say about Midsouth. You mention that you guys work on a different part of town, where do you usually buy your houses? From what I've seen, Midsouth has houses mostly on C, or B- neighborhoods, are you in the same area types?

Do you have (or suggest) an exit strategy for turnkey properties? One of my biggest concerns is overpaying for the property. Do lenders usually come up with an appraisal that matches Midsouth asking price?

Cheers, Henrique

Disclosure: Customer

@Henrique Barbieri - Fortunately for me, the tenant vacated on their own early on in the eviction process.  Costs to me were minimal, since all we did was send one letter, I believe.  As you note, lost rents is the biggest thing.

@Henrique Barbieri — Yes, Memphis is a good market. Of course the bigger question to lower your overall risk lies more in the neighborhood then it does in the market. This is something I educate clients on every week.

One other comment to think about: don’t think that “starting small“ or “getting your feet wet“ is about buying Cheaper or less expensive properties...

Just the opposite! 

You are often better as a new real estate investor to purchase quality properties in better quality neighborhoods so you have an overall better experience with better tenants. A lot of it has to do with demographics, among other things.

Hope that makes sense.

Continued success!

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