All Forum Posts by: Paul Schaefer

As someone who actually lives in Cordova, 38109 is certainly NOT a Cordova zip code. It is in the southwestern most corner of Memphis.  I would probably consider this area C class & below.  Cordova is on the eastern side of Memphis & stretches from somewhere just south of I40 to just north of Germantown.  Cordova zip codes are 38016 & 38018.  I would generally classify Cordova as B class & above for the most part.  However, there are some areas which could be C class & below.  As others on BP have said before, Memphis can vary widely from street to street, so make sure to do your homework before jumping in.  With that being said, Memphis has been one of the top rental markets in the country for a while!

@Hannah Singer, first of all, welcome to BP!  I myself am also in the beginning stages of my real estate journey & have learned a massive amount through the forums, podcast, & webinars.

Now to your question. From looking at the pictures of the house, it is basically down to the studs & needs a complete rehab. Admittedly I have little experience in looking at houses like this, but what I have seen for a house this size, a complete rehab could be upwards of around $90k depending on finishes. With not being able to view the property in person & only having pictures, I would probably up the estimate for rehab costs. If you use the 70% rule (not the only method for determining purchase price), based on your estimated ARV, a purchase price in the $60k range would be a decent target.

Another thing to think about is typically at courthouse step auctions, I believe you have to have all cash to make the purchase.

Whatever you decide to do, best of luck to you!

Thank you all for your expertise & advice!  Great points to think about.  I feel like as a beginner, I will use traditional financing until I get one or two flips under my belt.

@Tom S. Thanks for the advice!

Can people using their own names instead of an LLC to qualify for a hard money loan, or do you have to have an LLC to get hard money?

I am still very new & learning many new things. One of the things I constantly see is that "cash buyers" tend to have a leg up on buying homes since they can close quicker & in some cases may get a lower offer. I have also started to browse through the hard money lenders here on BP, & from what i have seen so far, all of them have required an LLC to be able to qualify. Am I limited to more traditional bank financing until I start an LLC?

@Jeremy VanDelinder Both.  I saw a property pop up in Memphis that peaked my interest.  I also want to ask for future reference.

Excellent insight, thanks!

@Peter Sanchez Thanks for the insight.  I had heard that certain property damages may not be worth pursuing a property.  I guess it comes down to if the numbers work & there is profit there, then go for it!

@Brian Pulaski So far in my beginner state, I have only looked at on market properties on the MLS.

@Greg Dickerson Once I get more experience & my comfort level goes up, I think I will get to that level.

Thanks!

Would you touch a house that has fire damage?  If the numbers work out, is it worth it?  Would you repair or demo & rebuild?

Here is some info on what I'm looking at. A house here in Memphis is on the MLS for $5,900. It is 1392 sqft, 2 bd/1 ba. ARV would be in the ballpark of $100k+ at the current square footage. The description says there is fire damage, but there are no pics. This is in a decent area as it is within walking distance of the University of Memphis. Would you bother even going to look at the property?

Does anybody ever send offers to buy a house for the purpose of flipping without actually going to look at the property? If so, what is your criteria that the property must meet for you to send an offer sight unseen?