All Forum Posts by: Hank Lee

Quote from @Austin Smith:

Thanks for everyone's input. Currently out of the 3 tenants.  

1 finally paid and is back current
We're working on cash for keys for my other tenant
My worst tenant I'm prepared to be married to for a while until my court date. She was an inherited tenant and I know 100% what I did wrong. 

Curious, what do you think you did wrong with the inherited tenant? What would you do differently?

The reason I ask is, I've been looking to pick up another property. My day job has me very busy so I tend to look for turn-key properties, so that often means properties with tenants in place. Of course, I'd vet that they've been paying their rent, but curious what lesson you might be able to share.

Thanks.

Originally posted by @Cj Powderhorn:

Of course I have fantastic property managers.

Hi...can you share any property manager recommendations? We're on our 3rd property manager in 4 years. Lack of communication, lack of follow through on maintenance items, charged for things that are not our responsibility, I could go on...

At the moment, we have only one property, but we've got money for one, possibly two more, but I have zero comfort level in Memphis PM.

Thanks.

@Vivek Khoche huh?

@Andrew Johnson interesting points...thanks for the thoughts.

@Erik Nowacki thanks for the thoughts...that's the kind of story and information I was looking for.

@Ben Wilkins good idea of looking at which brokers continually pop up

@Bill S. thanks for the thoughts..."Again with limited time and energy I think you are on a fools errand to consider investing in multifamily out of state"...do you similarly think it's unwise to invest in SFH out of state - or just MFH? If the latter, why would SFH be ok, but not MFH? (I've got some thoughts, but I'm looking for other opinions.)

@Account Closed how many SFH do you have...has it become too cumbersome to have many SFH or do you feel it's just too slow of a path?

And how do you find them?

Ok, I know that's subjective and very vague, let me backup and provide some context. 

We started our REI a year ago with one single family property with a popular Memphis turnkey provider on these forums and have been happy so far. However, I get the math, I get that at about $250 cash flow per property, it will take 20 properties to cover our expenses and many more to replace our income.

I see a lot of discussion about multi family helping to scale this process quicker. First, where do you look for them? I look at LoopNet, but I'm sure there's a better process. With our jobs and 2 young kids we don't have much time or energy left over to spend nights at REI meetups and socials, etc. Hence, why turnkey works for us.

We have about $60k available to deploy right now. That sounds like too low an amount to get a decent multi family property. And by multi family, I'm thinking 4 units or more. However, that amount can get us 2 more "Memphis type" properties and continue us on the slow and steady curve. We target class A and B properties as that's what suits our comfort level and risk tolerance. Denver, where we live is out of the question, we clearly can't touch anything here. We don't mind investing where ever it makes sense - hence our one property so far in Memphis.

So the questions are what's the best way to find multi family properties? And what are some opinions on a realistic amount of capital needed to begin looking at class A or B properties? (I know there's lots of variables here, what city, how many doors, etc - I'm just looking for big picture thoughts, stories, or opinions.)

Thanks!