All Forum Posts by: David Hutson

@Derek Daun,

I have done both.  The inspections are pretty straight forward.  As long as the house looks to be in good shape and you follow their list you will be fine.  If there is a minor issue and you can fix it then they will probably let you.  They want to ensure the tenant has a safe house and haven't been out to fail me in the past. 

The inspectors are overloaded they will try to get in, check everything quick and get out without having to reinspect.  Work with them and they will work with you.  When they call make sure to set the time and be there or have someone there that will let them in.

I have only had one inspection per property and the follow on years have been self certification.  In my opinion it comes down to them wanting the money from the program.  The house being safe but it's not important enough to send an inspector out each year.

I think this is like asking what is the best car to buy.  You'll need to set your criteria to make a list just for you.  Everyone has a different focus.  I may focus on 2000 and newer homes and you may focus on homes from 1950-1980 that will make you a 12% return and someone else may want homes in Ohio that are multifamily and earn 8%. 

Memphis, for example, has more turnkey companies that I can count on my hands but they are Very different in their focus.  They buy in different parts of town, at different price ranges, with different returns.  None are bad, just different.   I would bet that the other markets are the same.

I buy from them.  I focus on homes in the 75k price range.  the service is great and I have never had an issue.  message me if you have specific questions. 

@Jack Murray,

I believe it's a hot market from the perspective there is not a lot of inventory and the good stuff goes fast.  I think 2016 will remain the same except we will have more people, than we already have, coming to Sacramento from the bay area as it is tough to find good deals there also.

I am done buying here as it's too hot for me so I make one less person in Sacramento looking for deals but I meet several people a week are looking for deals here and are not moving to other markets.  As stated earlier, the number of available homes are significantly lower and most people out there looking for homes are focusing on $300k and lower as they don't have funds for the higher priced deals.  If you can afford fix and flip the number of homes to look at will be greater.  I believe we have the buyers for those higher priced homes also.

Find a few good relationships at a REIA meeting or someone who is in the "in" crowd for the off market deals. It may be an oxymoron but there deals where agents aren't involved. The seller is looking to save on the commissions and it may help with the price you pay. It may not get you the best deal but you may be able to preview the deals prior to it hitting MLS, when everyone gets a chance to bid on it.

I am guessing they are pretty legit based off the investor loans and the volume of properties they are working, from what I have seen.  They have been working with one of the big crowdfunding sites to get assistance with short term financing.  I can tell you the overall deal is millions of dollars.  I am investing in it and haven't had any concerns.  Payments have been made on time.

I would keep it and sell the wife's home.  You stated you want to build a portfolio and it sounds like this is a good home to start the portfolio. obviously we don't have all of the info but it sounds solid.  

if you really want to build then keep this until your goals or something else changes then do a 1031 exchange so that you won't need to pay a large tax bill.

Evening @Curt Davis,

I'm in a similar position to you.  I started with 30 year loans and then switched to 15 as often as I could.  The 30 year loans allow for some extra cash flow if needed, but I haven't had to worry about it yet.  Another good, but small plus, is that the rates are usually a 1/4 to 3/8 percent lower.  That should increase the spread in the example you used.

As you stated, it is definitely better to go with the 15 year loan, as long as you can afford the vacancy or extra repair costs.  It also helps to have a larger portfolio to assist with covering for any large, unplanned repairs.  I like having the cash flow from the 30 year loan but will only be using 15 year loans going forward. 

I'm also with Douglas on this one.  I also look at it knowing anywhere I invest is going to have earthquake, floods, fires, and so on.   Don't buy all of your houses on one street and ensure they are well maintained.  To me it's all a matter of risk reduction.  How can I best lower it.

@Bryan Ratcliff,

Welcome to BP.  There are a lot of investors on here who are looking for homes and information on the Memphis area.  We have a lot of spirited discussion on your area.  You can definitely keep up to date on the current issues as someone will bring it up in here.

Make sure you set your keyword alerts for Memphis and other topics that interest you.

David

@Luke Preslar,

Evening. As a fellow active duty person and investor, I would never consider the duplex if it won't cash flow after you move. I would look at the SFR for your residence but don't go overboard on the price.

After your tour there it would be good to hope for appreciation.  I would not count on it though.  Nobody can predict what the market will be like in 3-4 years.

I see another member here stating there are some good areas within commuting distance.  I would focus on those for a good, long-term buy and hold strategy.  If that area doesn't pan out I would do what many of us in CA and other high priced areas do.  Look to another state.  Find an area around a base you visit or another state you would like to visit and buy a home there if it will cash flow.  Every time I travel I'm looking at the homes in the area to determine if they would be a good investment.   It's one way to find a place.

Send me a message if you have any other questions.  I'd be happy to chat for a bit.