All Forum Posts by: Sean Kelly

Hey guys, 

Looking at paying cash for 3 C properties in a market thats ~2hrs from me. 2 SFU and 1 duplex. Currently rented and under property mgmt. We'll say $100k total and $2150 gross monthly rents combined. 

I will likely be paying for an inspection on the front end as part of the purchase contingency. 

I will be financing them soon after to pull my cash out. 

Anything I should be aware of?

Suggestions in prepping the properties for financing?

This would be a first for me. I've not done an all cash purchase then a finance on a property. I'm doing as much homework as I can, given that these properties are in C areas..

Thanks everyone!

Hey Travis -- yeah my post got cut off and the app wont let you edit sorry.

gross rents for 3 occupied properties is $2150 (2 SFU and 1 duplex)

prob $500/mo potential rent on vacant home; needs work though to get it rented. lets shelve that property for this discussion though

net cashflow for 3 properties after tax, debt service, prop mgmt, tax, ins, 10% vacancy, 10% repairs, etc. is conservatively ~$650/mo .. 17.2% IRR assuming a 10% cap

I can likely get the properties for cheaper -- but $110k cash is really the top end of my limit.

Just really looking for advice on my best financing options (if any) for a seller that wants a cash buyer. Worst case, I just scrounge together my cash and  slap a mortgage on each property after we close. Thats prob the cheapest way to do it I guess. 

Thanks

Hey guys -- this would be my first purchase from a wholesaler AND first time purchasing multiple properties at once so I have a few questions would love some expertise Looking at 4 properties, two are individually priced and 2 are bundled together. 3 are rented, need no repair, and rent for $2150/mo Seller wants $110k cash for all I've got ~$110k in cash I can scrounge together a la savings, heloc, line of credit etc. but are there better short-term financing options? I'm going to want to put a mortgage on all of these properties after I purchase. Whats the best strategy here? Are there

Mark, you end up locking this in? is it that 10 unit on highland?

awesome Clint will give you a buzz tomorrow!

@Andrew Johnson great thoughts -- no real relationships in town.. other than the wholesaler I recently met. She's young and hungry and honest. 

@Patrick Liska good insight. I've been grilling the PM about how they do business etc. It's a rural town so they aren't the most organized, which is a cautionary to me. But I'm getting it out. There are a few other PM's in town that I'm calling

Thanks for chiming in Gents!

Looking at 3 wholesale properties in Jackson, TN: a duplix and 2 SFU's -- total rent ~$2150. They are definitely in C areas & tenants (one of them is section 8) but are leased, recently rehabbed, the cash flow is great, and they have property management in place. I would likely conservatively NET cash flow ~$850/mo after expenses, incidentals, mgmt, tax, debt service, etc.

Jackson is 2hrs from me, and I've never purchased properties outside of Nashville. I'm well aware of the class of tenants and potentail vacancy issues that could arise here but the cash flow is tough to ignore.. 

Any tips or things I should consider when purchasing C properties that arent in my home town?

Thanks all 

Hey guys -- looking at a few rentals in Jackson, TN. I live in Nashville and this would be my first out of town investment.

An investor is wanting to offload on Gordon, Alexander, and East Chester: a duplix and 2 SFU's -- total rent ~$2150. They are definitely in C areas & tenants (one of them is section 8) but are rented, recently rehabbed, occupied, the cash flow is great, and they have property management in place. I would likely conservatively cash flow ~$600/mo after tax, capex, debt service, etc. 10% cap rate

Will likely be eyeballing them this weekend

Questions: 

1. Anyone have any absentee-owned rental experience in Jackson?

2. Anyone familiar w/ these areas? Should I stay away? 

3. Any recommended property managers? Current management is not licensed and just acts as administration for ~100 properties in the area and seem pretty hands on after chatting for ~30min

4. How is the rental market there overall? I literally found this deal this morning so am doing my research inbetween my 9-5 work calls...

5. If I go out there this weekend, what other areas should I consider.

Appreciate you all!

Sean

The insight guys and giving me a feel of the market

Yeah I've been chatting w Emily and she's been super helpful about the property! I don't know enough about Knox market to jump on this so thought I'd ask a few of you who are impartial to its sale. I've only spent a couple of days looking around to learn about what's working and what's not. Everyone's feedback here is great. It still cash flows nicely for me, but from what it sounds like it's not priced great. Thanks for