All Forum Posts by: Alexander Price

I look at the marketplace to see what properties are being posted.  It's great to see what people can get properties for and in what areas. There are quite a few wholesalers posting in the Memphis market on BP.

Another note about BP, it is a very large REI forum. You will get a pretty big audience.

@Pamela Starnes That is a very generous offer. If I could vote on your post twice I would.

@Alex Craig

Thank you for your response. It is line with what others have been telling me. I guess I will use 10% just to be safe.

I have seen a few posts recently and researched some data about the vacancy rate. It seems 2014 was about 10.65%. I am trying to acquire my second property in Memphis and want to make sure I use the correct vacancy rate for the area. When analyzing my first deal I used 8%. At the time it seemed reasonable based on what a few turnkey companies and PMs were advertising. Also I was under the impression that there was a significant demand on the rental market at the moment. I am not worried as I have margin in the cash flow for the first property. 

Did I misjudge? For my next property should I use a more conservative 10% vacancy rate? Obviously being more conservative and performing better is just fine, but I do not want to pass up perfectly good properties because they are borderline to my to my target COC.

@Marvin White

Welcome Marvin! Lot's of good stuff on this site. I know there are quite a few wholesalers that post deals for Memphis on the site. Keep an eye out and setup Memphis as a keyword for yourself. 

Thanks for this post and thank you for referencing a resource.

It seems to me, like with all warranties, they are structured so the company makes money and in the long run the cost is stuck to their clients. Personally, I bought one at my primary residence and could not use it, straight loss of $450.

@Keisha Orr

The seller being willing to finance with zero down seems a little strange. I would take @Stephen Akindona's advice and research more. Even with zero down, you are having to front the costs for the rehab.

What happens if you go in, start the rehab, get a bunch of work done and then have to walk away? The seller wins big, free rehab money.

I used Jason Lovelace. He was great and super detailed. Went back to my property 3 times and did extra detailed work. Also he gave me as much phone time as I needed.

PM me if you need his info.

@Douglas Skipworth

What impact would more millennials have on the market? Would it cause Memphis to have higher appreciation than it does now?

This seems reasonable to me. 

I think if more people read Millionaires Real Estate Investor, they could temper their expectations. The goal of cash flowing a million does not require hundreds of properties, just lots of time. Near the end of the book Keller highlights what buy and hold can do for you financially over 30 years. Personally I get excited when I think about holding the properties to the point of reinvesting or owning them outright and pocketing all the extra cash.

I do not understand holding real estate short term unless it's a trade up. I am also a newbie at this so maybe I am naive.