All Forum Posts by: Jack Inman

@Matt Rutter Some HOAs are more active/lenient than others. But I think most HOAs would catch a STR sooner or later. Probably as soon as the neighbors started complaining.

As far as getting caught - they'd probably hit you with fines. A good closing attorney will read through the HOA documents to look for leasing prohibitions. Just make sure you include in your offer that the offer is contingent upon being able to operate a STR.

@James Prather Like @Alex Evans said - it may be priced too high. Also make sure your listing has a good online presence - nice photos, an attractive description, etc.. 

Besides price being too high, the other thing that causes listings to sit on the market is a failure to have good lead follow-up system. I don't know what PM you have. But it's really important to respond to each lead and to follow up with them. 
As far as appliances go - I personally put kitchen appliances in my units. (dishwasher, stove/range, fridge). But not the washer/dryer. I've found that providing appliances certainly helps, but you have to really know the area and the tenant. You don't want the appliances to walk out the door with the tenant. I'd defer to your PM's judgment on appliances. Best of luck!

@Alex Evans is spot on. Cash flow is good, and appreciation has been solid for a while now too.
I've had to evict a couple tenants here and there - And it's not fun, but it's always been pretty easy.

Good luck with your investing!

@Chad Maghielse In memphis there’s a law firm called Evans Petree and they have a guy who specializes in fighting property tax hikes. Don’t know if they handle other areas. 

I second @Walter Jones with his recommendation of @Caleb Parr. I self-manage my rentals, so I haven't used him personally. But I met with his team recently and was very impressed. As always look for the property manager with good communication skills - it's crucial to find a PM that's easy to get in contact with.

- Jack

Murphy, DeZonia, and Webb, Closing Attorneys. 

@Dock Newell Jr Great choice picking Memphis to invest in! Hard to beat the cashflow that this city can offer. As far as financing - I personally like the local banks. They seem to offer more flexibility when it comes to financing deals. You should check out BankTennessee and Bank of Bartlett - they have been good to me.

As far as choosing a neighborhood - your best bet is to find a good investor-friendly realtor who can help you. Memphis has a lot of "micro-neighborhoods" if you will. Meaning that one street can be great, and the next street over can be totality different. It takes time to learn the nuances of the neighborhoods, but a good realtor can really help you. Personally, I love Sherwood Forest for long term rentals, but there are tons of other great neighborhoods to invest in. 

@Joe S. If you have good connections with plumbers, HVAC techs, etc.. then doing the DIY management route can work well. But if you're out of state, don't have the time, or don't have the connections with good contractors then it can be tough to handle repairs in an efficient and financially sound manner. I personally self manage my rentals, but I live within 10 minutes of them. If I lived out of the area, then I doubt I'd feel comfortable trying to self manage. With a good tenant I think the repairs would be the biggest concern.

If you're local and have time then self-managing can probably save you money. Otherwise it's probably not worth it. 

@Misty C Traylor Flipping a tax delinquent property absolutely counts as a first deal! I'd echo what @Eric James said about starting small. If you make sure that it cash flows after accounting for all of the typical expenses then it's a pretty safe bet. It's possible home prices could fluctuate, but I think strong rental demand will keep rental rates on a stable trend for the foreseeable future. 

@Kim Hopkins Probably worth going for a discount first. For quantifying the amount, I'd start by seeing if that leasing company you mentioned could give you an idea on how much the difference in potential rent is between a 14ft clearance and the 11'7" clearance is. Loosing 50% of the potential tenant pool is never a good thing, but if the seller is willing to give you a discount to offset that drop in value then I see no reason to back out.

@Juan Rodriguez I've had good luck with Parker Rhett with State Farm. He works with a lot of local investors in the Memphis area and has been good to me over the years.