All Forum Posts by: David Hutson

@Patrick G. I flew out to Memphis before I bought my property. I spent almost a month looking at everything online and then flew out to Memphis for a week looking to purchase three homes. It's a little work to fly out but definitely worth it to walk the ground. I think I spent about $1500 but it was well worth the money and time. I probably would have purchased homes that I wouldn't have liked long term if I had not flown out.

I didn't find much I liked and that was of the quality I wanted. I only bought the one. I have found working with lawyers and other investment people out there has been the best for me. I have closed on two others this year and have plans to get a few more. The people I have found have decent homes that are getting me 13% returns after taxes, ins, vacancy, repairs... They need a little work but much of what gets good returns out there does.

I have purchased a new home from them in the last year and it was a full price home. The return isn't as good as my other Memphis homes but I am ok with it as it a new home and performing well.

As for the management. So far I have no complaints. There was a small glitch initially but it was quickly corrected. It's 10% for their mgmt fee. I pay 8% for my other homes there but it's worth it to me for the good service since I am on the west coast.

Afternoon Patrick,

I'm in Sacramento and recently started investing in Memphis. There are a lot of good deals there, and a lot of bad. That's everywhere though. Hang out in here and set keyword alerts for cities that are closer that you would be interested in and then watch those discusssions. I would say look at a few cities in Texas or Arizona but flights to those cities are about the same price and the cash flow won't be much different, depending on the deal.

Welcome Anthony,

I'm a local buy and hold investor. I would say read/learn as much as you can from the BP and other credible sites. There is a lot of info to digest. We have started a local meet up group recently with people from this site. We will probably meet again in a month or so. Make sure to stop by. There are also 3-4 local REIA meetings every month.

It's getting difficult to find good deals locally. I have started to purchase in another state. I recommend either start locally or learn a lot before purchasing outside our area. While you can get higher returns in other states it may not be a good idea until you get some experience.

Send me a message sometime or shoot me some questions. I'll be glad to help you with what I know.

I'm closing on my third turnkey home in Memphis tomorrow. There are a few companies out there who have the procedure down pat and a few that are not so good.

This last home was set up for turnkey and then the company went under and now I am purchasing the home from the lienholder directly. While I have noticed the quality of the work in this home isn't very good I am purchasing the home at a lower price and will have the property management company fix the issues found during the property inspection. I will still get at least a 13% return on my money after the repairs.

Evening all,

I'm looking for an agent in Sacramento, CA that is very knowledgeable in regards to fourplexes. I'm looking to sell mine in the near future I do not know anyone who has a lot of experience in selling them.

Looking for someone who is familiar with 1031 exchange also as I will most likely need to do an exchange.

Thanks everyone,

David

As a 24 year military man, still in, and a property manager I would recommend when you decide to rent to a military person that you get his/her unit phone number/contact info. Then call it later before he/she moves in to verify it's his/her unit. Most of the time it's safe to rent to a military person or family but there are many military people who have never rented a home before or will cause some damage due to negligence or inexperience.

Obviously military people can move between units, even on the same post, but it helps to at least have a starting point.

@Curt Davis

I can understand if I was referred to someone out there that they should receive a commission or fee. I actually did all my research for the three turnkey companies I wanted to visit and talk to prior to going out there and contacted them directly. I went and visited them or talked to them. I believe this may be a good means for certain people. I'm saying that for me, having a few agents and a few lawyers/others who deal with owners with issues is working for me. I'm willing to fly out or purchase homes directly from those who have homes rented out as the returns, for me, are better. I may spend $1500 to go out there for five days but that gives me time to learn the area better and I end saving thousands.

I'm not saying I won't use a turnkey company again. At this time I have several good properties out there I want to purchase that aren't through a turnkey company.

Next time I come out there I'll buy you lunch and we can discuss the market.

I have recently purchased a turn key home for the first time. I flew out to Memphis, visited several different providers over a week and decided to purchase one. (I didn't find many that I liked and had good numbers.) The process and experience have been good with the company but you shouldn't have expectations of getting a great deal pricewise, but you should get a good experience.

I think that if you are purchasing outside of your area or are new this could be a good way to go. Expect to pay full price or receive an overall lower return though.

Since that trip I have purchased one more home and expect to purchase another in the next month, both in Memphis, without a turnkey company. I have found that visiting the area and building a team yourself can easily save you 10-20k or more if you are patient and don't just choose anyone to be on your team. I know enough to get quality people with good referrals/references and that have reasonable fees.

I have a few properties in Memphis, and by no means an expert there, and I find that most property managers I talk to require annual leases with annual renewals. I personally prefer an annual lease up front so I have continuity for the first year. It's expensive to clean up a home and then rent it out again, to include the loss of rent. I understand the tenants can be a problem or give you a reason that you would want to ask them to leave earlier. A month to month agreement would do that but if you screen your tenants well you shouldn't have to (though some slip through the cracks). If you have an annual lease and your tenants give you problems your lease should give you the ability to ask the tenants to leave for the specific reasons listed in your lease. Ie, violate noise policies, smoking inside or whatever your lease covers.