All Forum Posts by: Abdul Azeez

@Joe Splitrock Without rushing to any conclusion, I believe the property was a great buy. It is in perfect condition and I believe I bought it with built in equity. So, I have no regrets regarding that. You shouldn't go by Zillow information because they might have advertised for rent but never rented it and instead sold it. The seller was an investment firm that probably wanted to get out of the market. So, as I said above, I have no regrets because I believe it is something I bought with a good amount of built in equity. I am just awaiting f/b from my PM at this time. it looks like I may need to lower the rent.

Rolanda Eldridge - I am waiting for feedback from my PM. I could drop it to $750 and get it rented tomorrow. That is not the solution. Rents need to be realistic with the market. Rentometer shows an average of $1200 and median of $1250. Even if I dropped $150 because it's not a detached that will bring it to $1050 to $1100 and nowhere close to what you have recommended.

@Christopher Blanco To each his own. Do what you think you are comfortable with. In my case I did not have an option. Buying a cash flowing property that meets my investment criteria is difficult in NJ with the high property taxes. To clarify, this was my first deal as well. To provide you some of my percentages, this is what I use:

1. 17% vacancy - 2 months

2. 10% PM

3. 10% Repairs and CAPEX

4. 1/2 of first month rent for leasing fee

5. Insurance $50 per month

6. Rehab cost - $5000

After doing all this, I look for a 10% COC and $150 per door. It's incredibly difficult finding deals that fit the above criteria but it also helps narrow down the right properties that work (for me)

Folks - Personally, I have never been to an REIA meeting for the exact same reasons you are talking about. Actions are better than words. Try doing a deal and getting your feet wet. It teaches you so much than reading, browsing the forums, attending REIA meetings or listening to Podcasts. I am not saying don't do this but taking action is the best way to learn. After completing my first transaction in Memphis as an out of state buyer, driving down 15 hours from NJ to Memphis with a group of folks, spending two days, touring the properties, making offers and finally purchasing one and turning it over to property management has taught me a whole lot more than just reading or meetings. If you take one thing away, that is Take Action. Experience is the best teacher.

Folks - I am not looking at tax sales yet but I found the Shelby county tax assessor website to be an invaluable resource in my research for buy and hold properties. It is really amazing how much info. they have on-line at the site.

@Christopher Blanco - Have you tried going out of state? I am finding properties in Memphis which cashflow at the range you are looking for from the MLS.

Folks. I appreciate all the helpful suggestions. I will keep you posted on what happens. I really want this to be a positive experience for my first investment in Memphis so that I can continue building my portfolio. I am keeping my fingers crossed that something is going to work out soon. Thanks again for all the helpful insights. 

@Joe Splitrock I don't have control into the listing. The PM owns the listing.

@Curt Davis -- Thanks Curt. Maybe for future ones I can look at SFHs.

@Curt Davis - I believe its a good property for the area. Need to wait and watch what happens.