All Forum Posts by: Sean Tagge

Here are some cities that have been hit the most and the least through Covid with rent prices. 

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

Hey Cesar, you are welcome. I also used to invest in Salt Lake City UT it is too expensive now for me to buy (and hold) in. I am still very actively investing in Memphis TN would be happy to take you out to some world famous Memphis BBQ if you are ever in town. Best of luck buddy! 

Awesome Cesar, 

If you are looking in Memphis its a great market and I have been investing here personally for the past 5 years. It has seen steady 3-5% appreciation each year and still has relatively low home prices and high rents (a high RV ratio). 

Memphis has fared well through COVID rents actually increased through the pandemic

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

In terms of BRRRR mortgage lenders I would recommend Aaron Chapman with SNMC. He is amazing.

I think virtually analyze several markets that you are interested in. Know what you are looking for. Then narrow it down to 2-3 markets that best meet your future plans. Then go out to those markets and visit as many realtors, PM's, contractors, wholesalers, properties etc as you can while visiting

15% IRR +

Hey great work @Arron Paulino I did my first OOS BRRRR in 2016 in Memphis and I just sold it this year I got around a 25% IRR not too shabby. I would second going upstream but also in the C class you can make money just takes some experience.

Also thanks for the shout out @Tyler Tapley for our PM company Reedy and Company my partners own that PM company and I'd be happy to answer any PM questions. 

Hello Domenick, 

We are looking for a 15%+ IRR and around the same amount of COC after we refinance in 2-3 years after ownership.

Our collections has remained solid on our MF only about a 1% drop since pre-COVID levels. So we just add some more vacancy and uncollectible's to our underwriting. 

@Keleisha Carter ok now knowing its in 38118 your ARV is probably going to be $85-100k tops. Ya its a decent neighborhood we do a lot of turnkey houses there. I wold rate it a C+ to B- B area depending on where you are at on the zip code it's a big zip code area the farther east the better.

Let me be the first to state the data and source of my data. If you are interested in Memphis TN here has been the average Appreciation 2017-2019 Data Source Chandler Reports. 

2016

Average Price $158,465

2017 

Average Price $165,640

2016 -2017 4.5%

2018 

Average Price $173,078

2017-2018 4.4%

2019

Average Price $181,772

2018-2019 5.0%

Memphis has also consistently been one of the top markets for high rent to value ratios. 

Let me know if you are interested in discussing more would be happy to help in any way. 

Is it in good condition as is right now or does it need repairs? What is your renovation estimate? that would tell me a lot more.

Do you have permanent financing lined up? You are not going to want to leave the hard money in placed for longer than 3-6 months what is your plan to get it to a 30 year fixed 3-5% interest rate? 

What do you think it is worth all fixed up? ARV?

What is the address and I can really tell you if it is a good deal or not. But from what I initially see probably not a great deal. 

Hello @Gili Rozenthal

Ah I see you can still do this with fix and flip.

Yes there are lenders out there who will lend to newer investors they are called hard money lenders and they are a dime a dozen out there. I would suggest learning from other experienced investors perhaps partner with one for a while. Or listening to the BP podcast, read books etc for a while before diving into your first flip. 

To build your credit score that is pretty simple to do as well just get 2-3 credit cards spend like $100/mo on each of them and pay them off in full for 3 months straight and voila you got a credit score.