All Forum Posts by: David Hutson

@Chris Sanchez, @Caleb Heimsoth,

I believe about 11 are turnkey and several of those were not bought directly from the turnkey company who manages them. I have also bought off MLS and from a wholesaler.

  If a company is turnkey they should own and manage the PM company that manages your house.  I wouldn't buy from a turnkey company unless they did.  I want to ensure they will cover any repairs that may occur within the first 90 to 180 days that should have been caught.  I also want to ensure the tenant they place is going to be a good tenant and not someone they throw in and let some other company deal with.

As far as recommendations, it's going to depend on what you are looking for and the area you want to be in.  Do you want a $70k house or a $110k house, what class of home, what areas, what return are you looking for, etc.  There are many posts that will cover them also.  

I go out there twice a year for five days and meet with the leadership of the companies I like and some others that I think may interest me.  I also meet with PMs or agents I may want to work with in the future.   I definitely think that should be a requirement the first time or two you are purchasing out there but I will say I have only been in three or four of my homes there but I do get them inspected.

Some of the companies that I would recommend are Memphis Invest, Memphis Turnkey, Rent to Reward, Mid South Homebuyers and Memphis Buy and Hold but they are all good for different reasons and work different parts of Memphis.   If you want to PM or email me I'd be happy to discuss it with you if you.  There are others and there are some I stay away from.  It's all based off your goals.

David

I'm with @Caleb Heimsoth.  I own 15 properties in Memphis and I have a mix of turnkey and buy then rehab.  Turnkey is great because it's done and cash flowing from day one.  Buying and rehab'ing has been ok but depends on how good of a deal you can get on the home and then hoping for not too many issues that you didn't know about pop up.  The biggest issue with this option, in my opinion, is that you can get a quality rehab done for a decent price.  By the time you pay the contractor or someone else an extra 15% to manage the rehab the overall cost hasn't been hasn't been that much less than turnkey and turnkey homes have, in general, been better quality rehabs.

@Paul K.,

Evening Paul.  I'm a licensed agent who has lived in Sacramento for about 40 years.  I've had more than 10 local rentals and assisted others with finding homes.  

Feel free to message me with questions.  

David

@Roy Lam,

Yes, you can give her a three day notice on the balance of the rent after she pays you.  It's definitely hard when you have a tenant move out.  To me, it sounds like she is trying to make this work.  I would try to keep her as a tenant unless there is more to the story.

Maybe you could help her find a roommate or provide some info on where she could look to find someone.  This would save you the cost of turning the place, loss of rent and then rerenting the home.

If you are set on having her move out after you collect a partial payment why not try to work with her on getting out.  Is there a reason to go directly to eviction?  Give her the three day notice and then ask her if she has somewhere to go or has another option.  Usually tenants don't but it's worth a try to do a "cash for keys" option.  It may take another week but save you several hundred dollars if she will move out willingly.

I have been doing this for 17 years in CA and it doesn't work often but I always try if there is a good tenant in the home.  

Eviction isn't good for anyone and you should do some research and be ready to explain how it can hurt the tenant, difficulty in renting again, costs/fees, etc. Explain it from the tenants perspective and don't do it from the landlord's view, loss of rent, turn, etc.

Good luck,

David  

@Maria D'Aura,

If your relative is serious about buying, find an agent that you trust and that knows Sacramento to get some help.  Throwing out houses to look individually without knowing more about what your relative is looking for most likely won't work.  You may as well go on Zillow and set the parameters for price of under $100k and see what pops up.

I definitely wouldn't go buy a house without someone representing them.  There usually isn't a cost to the buyer so why not get the extra help for free?

That house is a short sale in a not so desirable area.  There really isn't anything good in Sacramento that is very good under $150 and I'm guessing all of those are getting multiple offers, if they are worth anything.  On houses over $200k most of the sales I have seen recently are going for $10k over ask.

Besides being an active investor I have my RE license. I just checked MLS and there are only 35 SFR listed under $150k in the general Sac area. I also looked at the homes towards S. Sac and they are all condo's or half plexes listed incorrectly.

That's a pretty low number when you consider how many homes there are in town.

If you have cash to buy then I'd recommend getting a loan and buying a decent house.  If they are set in being within an hour and a half of Sac then look down towards Stockton or up towards Yuba City.  Not sure what is there or how good the neighborhood will be but the odds of finding a home there are better.

@Codi Tripp,

  I have a few houses with Crestcore.  They have great service and do a good job.

Welcome @John J.,

Depending on where your home is I would recommend M&M for the main part of Sac.  If you are closer to Elk Grove or down south then Realty Roundup is really good.

Chamberlain is online and has a crash course in the San Jose area.  The online portion was good and helpful.

The crash course was excellent, even if you don't take the course through them you can take their crash course.  I took my test a few weeks ago and passed.  The crash course is definitely worth the $150 and a weekend.

I plan on attending.  I have been investing here for 17 years but only buying when the market is down.  The numbers don't look so good now for investing. 

I look forward to meeting other local investors.  

David