All Forum Posts by: Sean Tagge

Hey @Josh Bakhshi

Yes 38109 can be a good zip code to invest in. It is on the lower end I would say a C+ to C- neighborhood. As mentioned the East side would be more C+ West side gets into C-. As mentioned there are some streets that I would consider D or F in that zip code, street by street areas for sure. These properties are old 1950-1970 homes typically 3 bed 1 bath 1000 sqft. So if you are comfortable investing in C class neighborhoods then go for it. C class neighborhoods typically have higher cash flow but low likelihood of appreciation and lot of renters vs homeowners. 

If you PM me and give me the address I can tell you what we have rented and manage nearby and what turnkey properties we have sold nearby recently. 

Best of luck

Vet as many as you can virtually by calling them and checking their websites, google reviews, etc. like you are doing. Then spend the money to go and visit 2-5 of them. Meeting them face to face is a great way to vet a turnkey company. 

Hey @Shawn S. 

I guess you would need to consider where you would be investing money instead of into real estate right now? 

Also consider what your risk tolerance / risk to reward ratio is at? 

Personally and my opinion I am still buying and investing in real estate right now. We are still collecting good rents, tenants are moving into houses, people are buying and selling. Avg DOM is low. Interest rates are low. 

Nice work! I like your methodical approach and learning as you go. 

@Marky Suazo Wow man nice work! I think you made a good decision going with Tyler Tapley we have bought several deals from him in the past. I love your checks and balances with PM and your agent and your lender nice work sounds like you have all of your ducks lined up in a row! A lot of work and some risk sounds like you have mitigated a lot of it as best as you can. BRRRR is a great way to build some equity.

I look forward to seeing your success and you getting up to 20, 50, 100+ deals! 

good luck

My opinion and totally my opinion on Memphis TN condos. I just have seen several HOA's mismanage the money not fix the roofs, let the exterior go to waste, not fix the parking lot, rotten wood etc. Then the low HOA fees skyrocket to pay for the big fix or you'll get a big assessment. Then also just not a lot of people buying them on the back end so its low for a reason. Then also since it is probably a smaller house you'll tend to have a lot of tenant moving in and out every year or so because they want a bigger house so a lot of transient tenants. Which the biggest thing is you will have to after each tenant get it rent ready again and have a vacancy delay. #1 best way to keep a good ROI is keep tenants in for years to avoid vacancy and rent ready turnover repairs.

So in short my opinion is do not buy a condo for a rental

good luck

5 years ago I was in your same shoes I analyzed several markets and landed on Memphis TN. Memphis TN has appreciated 4-5% for the past 3 years lots of rent growth. Still low prices high Rent to Value ratios. I would be happy to discuss Memphis in further detail with you and why I moved here from Salt Lake City UT to Memphis to invest in Real Estate. 

I love to think about what I would do with $100k. I put down from probably highest ROI and work needed to do it to lower ROI and less work needed to do it. Then at the end just put some funny things down for kicks and giggles.

Options: 

1- Do a BRRRR buy cash in a low priced market fix rent refi repeat probably will have to leave $5-15k into each deal so you would be looking at 10 doors in a few years with probably $20k/equity door and $200/mo/door passive income. Risk: getting gipped by a wholesaler or a bad house, by a contractor not doing the work right, appraisal coming in low on the refi and leaving more in the deal.

2-Do a flip use hard money and leverage that to purchase and the $100k to do the reno and the overhead. You might profit $25k on it if you are lucky so a 25% ROI get it done in 6 months and thats a 100% annual return Risk same as above.

3- buy 4 doors at market value via turnkey or just on the MLS less risk but still some.

4- buy into a syndication on a large apartment complex with several other investors. less risk overall but probably a little less return but still a good return. (might need to be an accredited investor)

5- lend the money out hard money at like 2 points 12% interest. 

6- use it to pay down high interest debt

7- put in stock market... who knows what will happen

8- keep it in your bank account

9- go buy a Tesla or a boat with it. 

10- give it to a financial advisor to invest it into some well diversified mutual funds. 

11- invest it into a Ponzi scheme /pyramid scheme. You will get double your money back in 2 months.

You'll probably want to do 1-6

Welcome yes BP is the best. 

For international financing I would suggest looking up Bridge Capital they have some great non-recourse loans. 

Economies of scale