All Forum Posts by: Peter Vance

@Ramon Gary making big moves!

@Ramon Gary you going?

Hello DJ. So far it has been decent. There are quite a few more regulations on renting properties in Tupelo so that takes some getting used to. But the market right now is in a weird place so finding the right deal right now is a bit of work. Are you looking to invest just in Tupelo?

I do not right now but will have some this week that I will post.

Investment Info:

Office Space buy & hold investment in Tupelo.

Purchase price: $395,000
Cash invested: $1

My brother and I purchased a 15 unit office building back in April. This office build was quite a bit older and needs some work. I loved the building as it sits on main street in a growing downtown area of a smaller city. The building was built in the 30s as girls home and you can tell as the offices are small square shaped rooms with closets and connected rooms. Lots of potential!

What made you interested in investing in this type of deal?

Being my first commercial space and only my second real estate deal, I was interested in anything. Running the numbers as to the cash flow and the potential of the location, I didn't see how I could pass the opportunity up.

How did you find this deal and how did you negotiate it?

I saw this deal on social media for some realtors that I follow. The owner is a local investor and was needing to free up some cash, so I spoke with the broker who deals mostly with investors about the property. Someone had already put an offer in, but during the 15-day due diligence period, started to balk on some small issues. There were some issues with how the utilities and items were setup, but we offered a quick close under the original asking price and the investor was ready to move.

How did you finance this deal?

50% bank loan and 50% private lender.

How did you add value to the deal?

By closing quickly with mostly private money, the investor was ready to cash out. All of the rents were well below market and the utilities were being paid by the owner. Small cosmetic improvements of updating the outside paint, inside paint, and new signage, our 90 year old building will have a new face.

What was the outcome?

We are only two months in and learning the old leases were very handshake with no systems and the utility setup is a mess. Once we can get systems in place, and new tenants, this building will be a cash flowing machine.

Lessons learned? Challenges?

Challenge will be to find long-term retail tenants for the upstairs units. The cosmetic updates will add incredible value to the building and future tenants foot traffic. This area is a high traffic area, but also a tough parking situation.

Did you work with any real estate professionals (agents, lenders, etc.) that you'd recommend to others?

Blake Whitehead is a great broker for Gumtree Realtors in Tupelo that I would definitely recommend to anyone in the area.

Katie and Andrew, thank you for your response.

As this is my first rental property, I don't know if I have the systems and resources to manage renting out by room even though I know it is better for cash flow.

I guess the main reason behind my question is because there are currently tenants in the unit and didn't know if there was a way to filter your apps towards one group or another from your experience.

Thanks again for the help!

Hey Casey. Welcome to BP. I live in the Tupelo area and love Oxford. I am a Ole Miss Alum. I am new to Real Estate as well. I would be interested in getting a meetup started in our area so maybe we can get something together.

Glad to have a fellow Rebel on BP.

Hotty Toddy

So I am in the middle of my first deal on some apartments near a community college. The units are currently rented for lower than the local average since the previous owner never raised the rates and the tenants have been there for a while. I am going to increase rents as the apartments turn over and I make improvements to the property.

As this is my first property I feel that there are two different routes on pricing and who to advertise the units to.

1. College Students

• More turnover - Year to Year
• Higher need for maintenance
• More Hassle

2. Older Tenants

• Less Turnover
• Less Maintenance
• Less Hassle

So these would be my two prospects for tenants. I believe that setting the pricing for the apartments and the deposits will filter these prospects.
My question is if this is true and do you set a higher rent price and higher deposit for these reasons to look at finding college students as it is more likely for parents to be paying the rent for them and the amount of maintenance and turnover? Thanks for the help!!

Hello all, I am just getting started in real estate and bigger pockets and was going to see if anything came about from your meet up a few years ago.

@Dave Barkstrom I know this feed is a couple of years old, but I saw that you are a licensed contractor near Tupelo. I am looking into a duplex around Tupelo and don't know any builders that could help me out with some possible work. Do you have any recommendations?

Thanks