All Forum Posts by: David Hutson

@Douglas Skipworth,

Thanks for keeping track of these types of articles for us investors out there.

David

 @Michael Swope, 

Check your messages.  I'd be happy to chat with you for a bit about homes.  I can talk all day about them, as long as I don't get into trouble at work.

It's very difficult to find a cash flowing deal in Elk Grove.  In east Elk Grove (east of 99) there are only 6-7 homes that are under $300k, which even then, would be hard to purchase and get enough rent to cover all expenses plus a profit.  Anything up to that price will be hard to earn a reasonable profit and you would need to put more than 20% down to make it work.

I'm very familiar with this area as I own several homes here. I also just put a home that has been a rental for many years on the market here. I placed it on MLS on Saturday and had a full-price offer under contract on Monday. There just isn't enough homes at a reasonable price for first time home buyers or those who want to live in a good school district and a safe area. They are beating out the investors as they are willing to pay a little more since it's their home, not an investment.

If you want to find an off market deal I'd start with the local meet up groups and one of the REIA meetings in town. The closest is next to Arden Fair mall and they meet on the 2nd Wednesday of the month, if I remember correctly.

I like Ali's response.  I do think it's good not to keep all of your eggs in one basket.  I have a handful of homes here in CA and have purchased 12 in Memphis.  I have several providers that manage my homes for two reasons.  1, to get a comparison from different companies. 2, To ensure I have another provider to switch to if one goes bad.

As for different markets, my opinion is that it's not good to have too many homes in one location, in case Hurricane Matthew stops by or any other disaster.  Not that it will happen but it is a possibility.  I've been looking for other locations to purchase homes in but haven't found anything that really looks great to me yet.

Buying in TN does have a good advantage in regards to taxes.  They don't tax rental income.  If you don't live there you don't have to file state taxes.  That saves you the hassle of filing a return there.  It's a sizable savings in taxes and less of a headache since you don't have to file there.

Good luck, David

@Hadar Orkibi,

Yes, I like Memphis and will continue to purchase there.  Most of my homes are turnkey and usually a little under the appraised value.  I put 25% down since I have so many loans. 

I have also purchased off market properties and done some rehab.  It usually doesn't get me much more equity since I can't manage the rehab myself and have to pay for that service.

Not sure what you mean by recycle the deposit out.  I don't get my down payment back out by refinancing.

David

Michael,

I'm in Sacramento and have purchased 12 homes in Memphis in the last three years.  About to start another 1031 for the purchase of another 3-4 next month.  I'm very familiar with the area.  Douglas and Stephen have given lots of good advice.  Send a message if you want to talk strategy or get more specifics for purchasing out there.

David

I talk to them often.  I have met with Chris Clothier and David Meeks.  They have a first rate operation and they have great homes.  The customer service is excellent.  Definitely worth looking at for homes in the Memphis area.

Evening,

Here is the website for it.  I self manage several homes and the program hasn't been too bad but I don't care for it.  I don't need more people telling me how to manage/maintain my homes.

It does state that you have to provide a contact person, and it can be the tenant, even though the tenant gets a copy also.  If you trust the tenant or have someone who can get receive mail for you then that would be best.

Here's a thought, have them send it to your name at the rental address and forward your mail to where you want it to go to.  That should work but you would need to update it as the forwarding expires after a period of time.

http://www.cityofsacramento.org/Community-Development/Code-Compliance/Programs/Rental-Housing

I was recently looking and didn't find anyone other than Lima One with good rates either.  I'll be following this thread.

@Jon Crosby

  Exit strategy?  I'm going to die old and leave it all to some military support group to continue to collect on all of my properties or to sell them.  I'm going to be one of the older gentlemen who have a great reputation back there and own 50-100 properties.  My job will be to travel around the country/world sight seeing every few months.  That's my dream. 

Reality is that I have purchased several homes in Memphis over the past few years and will continue to do so.  At this point the only reason I would considering selling my Memphis properties is to complete a 1031 exchange into an apartment complex or some other multi-million dollar property.  I'm in the middle of my monopoly game and I have a lot of little houses.  I retire from the military in about 4 years and will look for an apartment complex or a hotel.  I probably will change my strategy as I get older but for the next 10-15 years I want to continue to build my portfolio so I can travel the country and world.

Get on Mid-South's list if your not already on it.  There are also several other quality companies in Memphis.  Check them out as well.  Then buy as many as you can, let the tenants pay off the mortgage and then retire and collect/cash checks every month.