All Forum Posts by: Haim Mamane Palman

CA properties: 9-10% of gross rent including 50% of first rent check (i.e. placement fee)

Memphis properties: 8%

I wouldn't pay more than 10% of the gross rent.

As a wholesaler, you should have different types of buyers on your list. The two main ones are Flippers/rehabbers and Buy and Hold investors. The 70% formula applies to flippers that plan to fix it up and quickly sell the property for a profit.

On the other hand, Buy and Hold Investors analyze their deals based on Return on Investment/Cash on Cash/Cap Rate. Every investor has different criteria you just need to know their criteria and bring them the deal.

In your case, it sounds like your deal will be a good fit for a buy and hold investor.

Good luck,

Haim

I'm from CA and decided to invest in Memphis for the exact reasons you mentioned. I don't think you can go any wrong with Memphis. From personal experience, with 20-30% down payment you should definitely get more than $250 after paying for PITI and factoring in mgmt. vacancy and repairs.

that's a great attitude. Good luck and feel free to ask questions along the way and keep us posted on your progress.

3563 Bishops Gate Dr. Memphis, TN 38115. 3/2 1800 sq.ft. Wholesale deal currently under contract.

Great for a flip or buy and hold.

ARV: 70-75k based

Estimated Repairs: 5-7k. Carpet, paint, cleaning, etc

House will rent for $900-$1000 and will generate great cash flow.

Asking Price: 47k

Complete wholesale packet: https://www.dropbox.com/s/j5qo8a89t2e26y2/3563%20Bishops%20Analysis5.pdf

Please send me private message if you want more details

Haim

I think it's a great idea. With FHA loan you need to put as low as 3.5% down payment and as long as the numbers work, the tenant of the other unit/s pay your rent and even better, possibly generate a positive cash flow (you can do triplex and four-plex with this loan as well). It will also get you the experience of being a landlord with everything that comes with that such as screening and working with tenants.

Good luck,

Haim

Hi Josh,

My first question would be what is your goal? Second question what is your experience level?

Based on the numbers alone and assuming that the repairs cost would be up to 65k, both exit strategies would work, it all depends on your goals.

If you are a beginner, my suggestion would be not to do this deal as it seems that the property needs substantial work. Your first projects should be simple with minor repairs. In any event, I strongly recommend to work with licensed and insured contractor and ask them to get you an itemized Scope of Work. First, for budget purposes and second to help understand the costs associated with each item. The new bigger pockets calculator tool is great and should be exactly for this type of analysis.

If you decide to buy and hold you should dig deeper and determine your expenses such as taxes, insurance, mgmt, vacancy, repairs. etc

Good luck,

Haim

I live in CA and invest in Memphis, TN. From my experience, talking to property managers and real estate agents that have experience working investors was very helpful for me. Another way is to look where the turn-key companies buy and research this area.

I apologize for the confusion. I just wanted to upload pictures to the before and after post and mistakenly started a new post.

My apologies.

Basic cosmetic repair. Rental property in Memphis. Purchase price 35k, 8k renovation, ARV 65k . rent - $900