Rental Property Investor 路 KY 路 Member since 2013 路 1k+ posts 路 537 votes
9y
@Dean Letfus, I am very impressed with the MSHB team. Their deals have gone from about 1.10% to 1.05% over the past few months based on monthly rent to purchase price ratio. The returns aren't stellar, but according to my conservative estimates, my total return would still be 16% annually, about double what one might expect in other types of investments. Sure, some investors are in the 20%-30%+ range, but I don't plan to lift a finger and chances are they're hands-on in some capacity. I guess I drank the Kool-Aid on the whole team first, market second, property third thing.
Specialist 路 Memphis, TN 路 Member since 2012 路 1k+ posts 路 1k+ votes
9y
Oh no that makes sense. Providing you get the returns you are being quoted. You won't know that for a year. I just never understand why someone pays 85K for a 70K house. Gives you no exit strategy, maybe ever.
My comments certainly not directed at MSHB, they have a pretty good name.
Rental Property Investor 路 KY 路 Member since 2013 路 1k+ posts 路 537 votes
9y
Dean Letfus , the same reason why I would pay $45 for a $15 steak. I get to sit back, relax, have a drink and enjoy a steak that someone else prepares, brings to me, and cleans up after me. Sure, it costs me more but I still get the benefit of eating the steak and not lifting a finger.
I know we're talking thousands vs a few dollars, but to me, the concept is still the same. Besides, if it really isn't worth what I'm paying when it's done, why would the bank lend on it? Doesn't it have to appraise? Or do they just look at their risk after my down payment money?
Real Estate Professional 路 Memphis, TN 路 Member since 2009 路 1k+ posts 路 1k+ votes
9y
@Suzane Ivas $4,000 is really high. Are you getting a break out of labor and material with vendor original invoice? Our normal rent ready is $1,500 and that includes painting the entire house, cleaning the carpet, landscaping, cleaning and an few other odds and ends. Our labor is about $350 a day and most rent readys take 2 days. 4k, the house has to be absolutely trashed with damages. PM's make a lot of money on maintenance, you have to watch them.
Investor 路 Saint Petersburg, FL 路 Member since 2016 路 29 posts 路 14 votes
9y
@Alex Craig Thank you for your response. So far its taken a few weeks to get it rent ready. Very disappointed with this. I have a lot to say regarding my experiences with buying and renting in Memphis and would love to warn people of the companies that I our opinion taken advantage of us. In the coming weeks I may even name names because I'm tired of investors falling for their bs. I also have some good experiences which should also be commended.
Real Estate Professional 路 Memphis, TN 路 Member since 2009 路 1k+ posts 路 1k+ votes
9y
@Suzane Ivas a few weeks is unacceptable. There are a lot of bad players in this field, that is why I have feel the PM business is easy to grow. Really as a company, if you provide excellent communication, transparency in billing and provide low cost solutions, business will come your way.
Developer 路 Fort Walton Beach, FL 路 Member since 2017 路 16 posts 路 5 votes
9y
Hello everyone! I am an Investor in Florida and will be moving in Memphis in a couple of months (馃槩sucks I have to leave the beach) and I would like to connect to all the local investors there.
Investor 路 Louisville, KY 路 Member since 2015 路 14 posts 路 4 votes
9y
@Elizabeth Wilson, Thanks for sharing. Am relocating to Memphis as well and would love to join sometime. This overall topic is very good to help me understand the area.
Shawn
@Mark S., I am currently on MSHB list and will begin seeing properties next month. Just wondering if you acquired a property and your experience so far?
Rental Property Investor 路 KY 路 Member since 2013 路 1k+ posts 路 537 votes
8y
Vivek Khoche , @Kurt Hull (not sure why it won't let me tag you - I'm writing from the app):
I was supposed to close early October. I had my interest rate locked until October 6th. The rehab is taking slightly longer than expected and should be completed any day now. I'm hoping to hear something this week. I'm hopeful that if my interest rate now is higher because of MSHB's delay that we can work something out. I'll keep you posted.
Rental Property Investor 路 KY 路 Member since 2013 路 1k+ posts 路 537 votes
8y
Kurt Hull , @Vivek,
Not really much to update, but here's where we are now:
- Property rented at $885/mo, as anticipated. Tenant was to move in Nov. 1
- Home inspection completed on Oct. 30. Forwarded report to them to repair a few items. Not sure how they're able to do this if tenant occupying the property Nov. 1, but was advised everything should be fixed within 1-1.5 weeks with pictures of all repairs sent to me.
- Appraisal came back on Nov. 3 at $2,000 higher than contract purchase price. Looks like MSHB is all-in around $65,000 ($30K purchase and about $35K rehab). They'll make a nice chunk of cash on the deal.
- Waiting on MSHB for repairs and to hear back from lender about closing date. I was thrilled they were able to fill the property this time of year when fewer people move. I don't think vacancy loss will be a big issue with this property. The photos are also pretty awesome. Looks like they did a fantastic job rehabbing.
- Will post more as things progress.
Investor 路 San Jose, CA 路 Member since 2017 路 343 posts 路 102 votes
8y
@Mark S.- Congratulation! We will keep watching your updates. All my investors friends me included are in line with this report in all the cash flow markets. I don't get someone paying $140 penalty for 1- 2 week delay.
Melrose, MA 路 Member since 2017 路 8 posts 路 1 vote
8y
Hello , I am pretty new to REI investing. I am trying to analyze some good buy and hold investments in Memphis TN. I would like to know your take on the area in Gill Rd, Memphis, TN 38109 . What kind of neighborhood is it? Is it a good rental market? Is it a war zone?
Specialist 路 Memphis, TN 路 Member since 2012 路 1k+ posts 路 1k+ votes
8y
You'd really have to drive it @Account Closed, it has some funky streets off of it. 109 is one of those zips that varies a lot. None of it is great but quite a bit of it is OK.