All Forum Posts by: Kevin Lee

 Hey There @Kevin Lee, 

Happy to share. Yes, there have been challenges. First of all, my buy criteria is pretty narrow: 

- A or B+ neighborhood with above average schools in growing locations (I have mainly looked in the Sun Belt as of now)

- 3/4 bed, 2 bath, purchase price <250k with at least 6% rental rate (1% rule is really hard to find with the properties I like, so I need to temper my expectations)

- newer (2000 or after) or newly renovated via a turnkey company

So, the obvious challenge is the options I have are less than if I expanded my search. Also, I give a little bit up on cash flow and COC returns (these properties are simply more expensive), but being a long and hold investor, I know I'll do ok on ROI due to rising rents, appreciation and paydown of my principal. None of this happens overnight, but I know it will over time. I just make sure I check the numbers and make sure I am cash flowing a little. I don't want to depend solely on appreciation.

The other challenge which has probably hit all investors in the rise in interest rates, which has slowed my ability to acquire, but working with partners where rate buydowns are an option can help make the numbers work. 

Finally, I made a bone headed decision to buy a property in a new build in Florida that was still being permitted. Unfortunately, the delays (it was never completed) tied up my capital for a couple years and stopped me from being able to do other deals. Lesson learned, I'll only do completed new builds or renovated properties moving forward. 

I will say, once you have a partners you feel comfortable with, subsequent properties can be  smoother, but there are always external challenges to address. I am happy to share more if you want to DM me for more details, but hope this helps. 

@Kevin Lee

just curious, what were your closing costs on your purchase? 

Hi @Praveen Kumar

I am happy to provide more detail if helpful (feel free to DM me), but overall, I have had a great experience with REI Nation.

I just purchased and closed on my 5th property with them. I work with Ashley Claunch who is extremely knowledgeable, helpful and responsive. 

Their closing team is top notch and makes the entire closing process super smooth. 

The property management team is the best I have worked with and are on top of all issues and challenges that come up. I have worked with REI since 2021.

I am in CA and have purchased homes with them in Oklahoma, Texas, Arkansas and Memphis, TN. It is a great company to work with as an out of state investor and as someone who has a full time job and does not have the time to manage rentals on my own. 

Feel free to reach out if you want more info and good luck.

Pete

@Carter Ford would love to connect. I am both a Memphis based investor myself and am now with a prominent turnkey Memphis based company and study the market here day in and day out. 

There are definitely markets in Memphis that will support your price range, but just like any other market, you are going to get what you pay for. There is definitely a trade off for day 1 cashflow vs long term wealth building homes that will protect your investment.