All Forum Posts by: Michael Smith

Hey Sabrina,  not sure how I missed your post, but just read it.  I am sorry to hear of your woes here in Memphis.  I am just cutting my teeth as a buy and hold investor.  I am close to quitting the day job and making this my full time effort.

Even though I am new to the game, I see a lot of frustration from renters that I talk to and also local contractors that I work with.  I think there are some significant issues with outside investment and poor property management here in town.  I don't know if it is better or worse in other areas, but there are too many stories just like yours floating around regarding the Memphis market.  It find it a bit embarrassing, because I am from Memphis and love my town.   

I hope the situation has resolved itself and you are working with a good property manager.  

I saw this on the news and thought it post worthy.  A local "property management" CEO was sent to jail for bad rentals.  I wonder how much of this type of thing is going on in my dear city?

http://wreg.com/2015/11/15/property-management-ceo...

Ronnie,

I did a good deal of research into the issue.  It turns out that most damage from earthquakes comes from a limited set of known structural issues.  I would suggest checking your properties for these as a primary step and mitigating any real risk.  Most fixes are cheap and straight forward.  Anchoring sills to foundation, securing your hot water heater, and securing any crib walls with plywood to prevent their collapse.   Depending on your level of comfort, you can augment these preventive measures with some high deductible earthquake insurance.  That's my approach and I hope I never learn if it works.

Just 3 properties so far.  Is 10 the magic number for economies of scale?  I am a bit unhappy with my current provider, who has taken a few price increases without any real justification.  I am trying to understand how to get the best value out of my total insurance spend, while keeping in mind my plan to scale up in coming years.

I'd like to sit down with a broker and review my current portfolio.  Any recommendations?

I am please to say that I just closed on my second property in Midtown Memphis.  It is a foreclosure which needs some work. I am taking next week off of my day job, so I can hopefully get this property cleaned up and ready to rent.  

 I want to strip and repaint the outside and it is likely lead paint.  I also need to refresh the roof.   I believe the home had a package boiler hvac system which appears to have been stolen, and I would like to get that fixed quickly.  Lastly, I would like to refinish the floors before renting.  I think i can get the rest done with my own two hand and a little bit of sweat.  Any recommendations for contractors that can respond quickly on the above?

Also curious about what method locals use to set their rent.  Midtown has a ton of rentals, but it seems they rent quickly by word of mouth and it is difficult to get a good idea of what the property will rent for.  Its a 2 bed 1 bath in the better part of V&E and should rent pretty high in that category.  I'm thinking it will rent fairly quickly at $900, but I'm thinking of adding nice lighting fixtures, and appliances and starting by asking $1,100/month.  Thoughts?

Thanks for the help BiggerPockets!

I try to match my strategy to my desired level of participation.  I still have a day job, so more expensive property with higher rent, less turn over, less checks to collect, and less repairs are important to me.   If I were to make this a full time job, I might consider less expensive properties that earn a higher % return, but require more effort.  

I feel as if though you get into reverse economies at some point as property becomes less expensive.  In Memphis, I don't see you having an easy time to find solid renters at the $30K price point.  I would guess that you would have high vacancy rates, and high repairs on most property at that price.  Overall, the juice might not be worth the squeeze.  

I just couldn't resist posting here when I saw that I would be the first one to come along.  I really like the idea of a sub-forum especially for the Memphis area.  My hope is that this will be more useful than the keyword alerts, which in my humble opinion were less than efficient.  I also hope that this sub forum will help to highlight who is more active in the Memphis market.

Are any of those Memphis properties in Midtown? If so, I would be interested as I am actively looking for a new property or two.  

My folks have bought and sold a few in Colonial Hills and your price seems to be a good one.

@Eric McCully Eric, I'd like that very much.  Let me know when you are available.  I'll send a contact request now.  I am getting a good return on the house I have in the S'haven.  It is at the higher end of the rental market and we have had 0 trouble in the 4 years we have owned it.  DeSoto is a great choice.  I agree that midtown deals are difficult.  I have tried for over a year now to land a good one, but no dice.  I am patient though.  Evergreen, I think has some upside for long term appreciation.  Also I don't really want to run all over heck's half acre to do repairs and turn properties.  I'd like to find units closer to home.