All Forum Posts by: Dean H.

My wife and I have been remotely  investing in Memphis for about 5 years now. We have invested in some fairly tough properties but always make sure that the property is in an area that could be nice and will cost effectively rehab to be the nicest on the block. We are very careful not to over rehab for the area. We took very little cash to, and have no debt in Memphis and have snowballed cash flow into a nice portfolio. We  figure we will net 50% of gross rents over time, remember cap ex and vacancies cost money. I think by far the best lesson learned is to make good solid local connections where you will be investing. We also try to go twice a year to view our current properties and visually see what areas appear to be stabilizing and which need more help than we are willing to give. We also try to " cluster" our properties to make it easier for our property manager. Currently we are sitting on the sidelines, to much poorly  educated money headed to Memphis right now. I do however shop everyday for the next deal. This all takes time and effort, which we are willing to give for a cash flowing retirement !!

I have a acre lot with water and utilities available at street ( AZ ). Wanting to build a 2500 sq ft RV storage building and utility pedestals only on the lot. Lot is free and clear, credit is very good, zoning is fine. What is a sensible way to finance this long term? And yes, I have considered building a duplex and going conventional, just trying to keep life simple down that way. Thanks for your ideas.

@Mike Mosee

Mike,

I'm in Memphis now shopping for more single family. What are you looking for, Turnkey ? Rehab to Rent ? With tenant or vacant ? Price range ? 

Thanks Dean

I'm just a crabby old man but I always question investing in a property that is in an HOA. I just can't live with the loss of control, whims of a board, and always questioning what I'm getting for my fees.

Well debt service after down payment would be more than the gross rent so you would need in addition to my first post above a job paying about 15,000 a month to cover the debt service shortage taxes, insurance, management, repairs and everything else

By far the easiest way would be to have 875,000 in cash for down payment, an 800 credit score, and 200,000 in extra cash for repairs and reserves. Couple those with a history of investment and rental management and your in!!!!

Personally I would be glad to have him on the premises, ask him to secure the unused one in a safe and keep an eye on things for me  

@Rahul Sunkavalli

My advise is never buy anything in an HOA for a rental. You are allowing other people control of your future asset value and cash flow...... NOT GOOD

You asked 

@Nathan McQueen

Nathan, My wife and I do this a bit differently than most, at least so far. We have built a nice portfolio of single family rentals that we purchased and rehabbed with cash. I'm not in any way saying that what we did was the best way but it was the way we chose and that we feel comfortable with. We took a bit of cash and bought and rehabbed some pretty rough stuff to get them rent able. We are currently purchasing 2-3 projects a year using all the rental proceeds and extra income from jobs to expand the portfolio as time and cash flow allow. It probably would have been much quicker to leverage our way to this level but we feel good about what we have done and will continue to expand as cash flow allows. I guess my point is that whatever you feel good with can be made to work. Pick a action plan and roll!

Brian,

I would recommend a search of the BP site in regards to investing in Memphis. There are reams of information available on this resource to help you develop a coarse of action