All Forum Posts by: Sean Tagge

Hey Michael yes there are lots of opportunites in M emphis. Its a great place to get into buy and hold real estate so that would be the first place you start is look for a house you can live in at first then move out of and rent it out when you move out and get some good cash flow after that

I sent you over TN Interested to see what you do with this. 

For creating an LLC you can use the attorney Douglas R. Beaty of Delta Title Services he is awesome.

Congratulations Sam! 

Hey @Stefan De Jong

Nice work planning things out. Sounds like your personal house will turn into a great rental. 

So I think that is still pretty decent market you are in Purchase $180k rent $1200 thats a .67% Rent to Value Ratio. 

You are pretty close in your market at least you are not in CA where home prices are $500k and rents are $2000/mo.

Instead of just considering properties that are listed at market value and stopping think of how you can find them below market value. You wont find them immediately but they eventually will come across your desk. 

What I would do is look for houses that need $15-$30k in repairs and buy them at a discount. I would shoot to buy these houses for $120k ish 

for example.. 

Purchase $120k

Repairs $25k

All in $145k

ARV $180k

Equity $35k! 

Rent $1200

And boom you just got yourself a great BRRRR where you might only need to leave in $10-$15k into this deal and you'll be getting some sweet cashflow and have decent equity in the house.

Yes pick 5-10 different cities analyze them. Whats the average rent? home price? appreciation? population growth? avg income? average deal look like? etc 

BP Insights would be very helpful for this and would help you do it very easily. 

So the best database that tracks CAP rates is Costar.

Then your second best place would be to ask local brokers in your area what the going cap rate is for certain asset classes. Go onto their websites they will usually have a few properties listed and they usually have the asking cap rate in their offering memorandums. 

Hello @KC Conti

First step is picking the right market I would pick 5-10 to do a macroanalysis on it then narrow it down to 3 to visit then pick the best 1-2 markets that fit your goals. 

Additionally you mentioned you are worried about COVID. Here is an article that mentions the cities that have faired well and poorly through COVID. 

https://www.apartmentlist.com/...

Hello @Amedeo M.

Here are some recent articles to help see why I moved to Memphis TN to invest in the market. 

#1 has show strong rent growth even through the pandemic. 

https://www.apartmentlist.com/...

#2 suburb city ranked best place to live

https://www.commercialappeal.c...

#3 has seen great appreciation over the past few years. 

Also @Sean T. Hey man never met another Sean T before!

Hello BP world and those interested in seeing how COVID has affected rent prices.

I would like to discuss an article here and some things I have been seeing. 

#1 this article

https://www.apartmentlist.com/...

Now this article is for multifamily but I believe SFR has seen the same trend. It shows the top markets that got hit the hardest with rental decreases since COVID. San Francisco CA, New York NY, Seattle WA, Boston MA, San Jose CA, Washington DC, Oakland CA, Arlington VA, Minneapolis MN, and Fremont CA.

So costal and large cities got hit the hardest with rental decrease. See below data.

But then it also shows the markets that actually had rent increases since COVID see below: 

Myself being in Memphis TN. Memphis was ranked the #8 city that fared the best through COVID actually showed a rent increase from COVID. From what I am seeing with selling 250+ SFR Trunkey houses a year. Our houses are renting quicker than ever and thus we are able to push rents up. I think it is basic supply and demand there are not a lot of houses on the market for rent (or for sale either SFR sales are down 5% YoY). Also our jobs are mainly logistics jobs like having FedEx, Nike, and lots of Amazon distribution centers located here. COVID causes an increase in online sales and thus you need more packages shipped so we kept most of our jobs through COVID and actually these employers hired more people through the pandemic. Additionally we are in an affordable market where 2 bed rents are still below $1,000/mo.We are seeing great rent collections as well. In October we had a collections rate on par or better with our previous 5 years of collections data (we manage 2700 doors here in Memphis TN).

Would love to hear what peoples thought are here? And what type of a play they are making?