All Forum Posts by: Mike Mosee

Welcome Patrick

Two pieces of advice.   While there is no state tax, there is an excise tax of net profits.  This can be exempted in most cases by an annual filing of a FONCE form with the Tennessee Department of Revenue.

If you are going to have a Tennessee LLC then a Tennessee registered agent is required. Annual fee can run $150-300 per LLC.

Good luck

Court eviction process are FEDs.    Just because a PM is used doesn't mean you abrogate all responsibility to monitor rentals.   I monitor my rentals & if any rental is 20 days past due instruct PM to do FED.

You can file FEDs in Memphis.   My PM has done it recently.   Been using the same PM for over 10 Years now quite successfully,   Mid South Home Rentals, in Lakeland,Tn.   Ask for Chris Peak

Hello Galit,

We also are an out of state Memphis investor since 2011.  The most important piece I can advise is to have a trusted person check each location thoroughly before purchase as it's a heavy crime city with lots of gangs.  Because of our property management team  we've had great success.

Mike

Hi Jared

We have used Mid South Home Rentals, Arlington,  for 10 years successfully.  We have inspections with pictures done, cost $75, every 4-6 months.  Ask for either Chris Peak or Katie Tawater.

Best,

Mike

Hi Carolina

There is no magic zip code that gives good ROI as crime areas change by a few blocks. We've found the best way is to have boots on the ground, property manager, to access. Zip codes we have that give good ROI include 38128, 38134, 38053.

Best of luck

Mike

Quote from @Mike Mosee:

Hi Rupali
We've been investing in Memphis since 2011.  What areas you do so has everything to do with your success.   The most important thing is to have a great property manager to guide you.   Even so I go by the "Trust but verify" rule & have the majority of the properties inspected with digital dated photos every 3-4 months.
Our people there have yet to steer us wrong.
We are available to further discuss if desired
Mike

Hi Rupali
We've been investing in Memphis since 2011.  What areas you do so has everything to do with your success.   The most important thing is to have a great property manager to guide you.   Even so I go by the "Trust but verify" rule & have the majority of the properties inspected with digital dated photos every 3-4 months.
Our people there have yet to steer us wrong.
We are available to further discuss if desired
Mike

FHA isn't the only way. Talk to a credit union or mortgage broker. Normally 20% down will work as long as you keep reserves & your income will support payments. Good luck

It's best to have LLC in state where property is. Insurance is great, but does not cover everything & if you read policy for exceptions you'll see.