All Forum Posts by: Bob Beach

@Don Gouge Yea, I kinda understand, this falls into the category of "you get what you pay for". I guess the definition of "fair" could be different to different people.  I'll try and clarify.  One PM gave me an estimate to get a house rent ready of around $2400. (not including flooring which another estimate had flooring as a steam cleaning only). The final cost was close to $9000.  and many expenses, they would not explain other than "materials" and "Labor".  So, to me, Fair would be somewhere in between. Another case, one PM gave an estimate for a rent ready repair at $5400 and another PM for the same house at $7400. Another guy I used had good prices but wouldn't paint the final project or finish it at all.  Well, I could go on.

  But back to my original question. I'm a bit surprised that no one wants to share a good experience with a rehab team.  If I have a house in a neighborhood that has some trashy houses and someone wants to rehab them, the whole neighborhood would improve and we all know what that means to us. I had one person tell me, they worked with a good team but wouldn't tell me because I'm from CA and they had a bad experience with someone from CA in the past. I don't mind writing a check for a fair amount to get a good job done correctly and on time. I understand hidden expenses as long as it is presented to me "honestly".  But it seems, they don't exist?  

Thanks for the feedback.

Bob

The PM's I've had the best luck with are Midsouth and RJ Property.  Midsouth is more picky about the houses they manage but have been trouble free in pricing, repairs, communication and honesty.  They want to manage a more perfect house in a better area.  RJ Prop. gave me issues in the past but a new manager seems to have solved that, (so far).  Pricing is "middle of the road" and communication is good.  The PM's that are substandard are to numerous to list.   Best of luck!

  We've had rentals, in Memphis, for a handful of years and now want to do a first flip.  One problem, I've had with the rentals in the past, is finding relaible contractor/handyman people for rehabs and repairs. So, that's what I'm looking for now. Can anyone point me in the direction of someone that's reliable, honest, reasonable (a fair price) and does what they say they will do and can do an inspection?  I have found people that are relaible but expensive, inexpensive but not honest, unreliable, don't show up, need to redo the work, don't complete the work, etc... 

I should be in position to move forward on a flip in late winter/early spring, so I thought I need to start laying the groundwork now. (Since the last 7 years hasn't produced much in this area).  And it makes it more difficult being out of the area.  

Thanks for any info or leads.

Bob

I've always bought MLS, low end houses in Memphis and Realtors were reluctant to go out and look at the houses. They would have you make an accepted offer, contingent on inspection, then go check it out. Smaller dollar amounts, less commission. If you have a property manager, they would send an employee/contractor out to inspect (for a fee of somewhere in the $150. range).

@Paris Snow You may consider Yuba City/Marysville area.  It's about a 40 minutes commute from Sac. to the north.  We have one rental in that area and has been doing very well in that past few years.   

@Kelly Orth I've been considering the same thing.  We have half dozen buy and holds in Memphis, all purchased for in the $30k range or under. With little rehab (on some). This was 4 to 6 years ago and I don't believe you can get a "rehab-able" house in that price range anymore. Our houses have gone up in value and so have the rents we're getting. It's been a few months since I've looked but I would think $50k would be a starting point in Memphis. I, soon, will be looking for a rehab team that I can feel comfortable with. Best of Luck

Twice, over the past five years, I went to Midsouth about managing  a couple houses (but they needed some rehab).  The first time, they said it was out of there area.  That house was North Memphis, outside the city limits.  The second time was the needed rehabs.  They said they were doing 100 rehabs at the time and didn't have the ability to take on more projects.  So, I believe they would take a perfect house.  

  But, after reviewing emails to midsouth, I saw the reason I was leaving Reedy.  It was because the rehab estimates were the highest of the ones that I got and also that they were very slow getting to them. 

Here is the contact info for the guy I communicated with at Midsouth.  Maybe he can advise more than I can:
Matthew Vanhorn Branch Manager Mid South Best Rentals 901-274-5237 (P) 901-231-4992 (F)

I'm currently with three PM's. Midsouth, RJ Property and LTIM. Midsouth is trouble free but you need a perfect house for them to manage. 

It was a few years ago but I believe it was related to high repair costs. I think it was Zak that I dealt with.  They all say they can save you money over your current PM, then you move your properties over, then the got ya. 

I had three houses with Reedy a while back.  Stayed with them for about 6 weeks and and got my houses out as soon as I could. I recall, it cost me about $1300 for basically nothing.