All Forum Posts by: Sean Tagge

Here are some plain facts about Memphis

2017 appreciation 4.5%

2018 appreciation 4.4% 

2019 appreciation 5% 

Source: Chandler Reports

and it still has one of the highest rent to value ratios in the country, of our 2900 units we manage here in Memphis we have only seen a 1-2% drop in collections YoY through COVID. We are seeing steady 3-4% rent increases YoY. We only have 21 days of rental inventory available to lease right now. 

I would recommend: 

Aaron Chapman Security National Mortgage,

Joe McBreen bemortgage

1. What are the factors should I consider when choosing properties in a state / market I'm not living in?

Potential market appreciation, jobs, growth, rent to value ratio, good property management, good team in place there. 

2. Generally speaking, is rental investment still a good option when the property is out of state?

Yes very much so with technology now a days you can really be efficient. 

3. What are the challenges should I expect if I don't live in the property?

Will have to trust but verify your team in the market, will have to be ok with not being able to do the work yourself, 

4. When I'm not very familiar with a neighborhood, what's the best way to find comps?

Ask 2-3 realtors on nice guys on Bigger Pockets that do at least 20+ deals a year in that area to give you their advice. 

Hey @Mark S. I love the questions and insight here. I like that you have all the data and facts laid out instead of some other peoples questions where they will simply just ask "hey my property is listed for $950 should I drop the rent" LOL how can anyone help with that vague question.

How long have you had it listed for rent? I wouldn't worry too much if its been less than 30 days. 

Then also sounds like you have pretty good leasing activity 3 applicants is a good sign. I think you should hang in there then around 21-30 days listed for rent I would drop the price to $925 or offer a $250-$300 concession of some sort. After 30-45 days drop the price to $895. 

Yes your big hurt on this property is the 1 bathroom. But the 4 bed is nice because MHA tenants like those. 

For us we manage over 2900 doors here in Memphis TN and sell about 20-25 Turnkey properties a month. Of all our turnkey properties right now all of them that sold last month are rented or were rented before sale. So the rental market is really good right now (considering COVID-19 we are super happy about that!).

Best of luck!

Depending on the position a little bit of both. But I really shoot for core values someone that will fit in with our team and culture and will not only have a good work ethic but the desire to always improve. 

@Alma Bagaoisan

Ill send you a link a video

@Alma Bagaoisan

I sent you a link to a video explaining the Memphis market and areas of town. 

Memphis went up 5% appreciation 2019. Lots of new jobs and big companies expanding operations here. FedEx, Nike, Amazon etc. 

Hey @Jon Hill thanks. ya really goal #3 comes first for us to accomplish goal #1. Big key has been the acquisitions manager which we got one on board already. 

Hiring process 

Write out a job description, 5 main job duties, common tasks to accomplish, etc. 

Put it up on ZipRecruiter then I have my VA scan the candidates then I interview top 3-10 then if I like them I send the top 1-2 for my partners to interview.

Our goals for 2020 at Memphis Investment Properties are:

1- Sell 400 Turnkey Properties

(We did 264 in 2019)

2- Buy 2 100-200+ unit Multifamily Properties

3- Hire 7 additional staff members: Renovation Manager, Sales Manager, Transaction Coordinator, Virtual Assistant, Acquisitions Manager, and a Marketing Director