All Forum Posts by: Travis DeForge

I wonder if turnkey companies like Memphis Invest would manage a property that they didn't sell? Like is their property management division a separate entity in itself? 

Not sure if that's a thing or not, but might be worth inquiring.  

Best of Luck!

It's not something that I would do. The idea of renting to family will, to paraphrase Dave Ramsey, make thanksgiving taste different. But, to help out your family is another story. If the numbers do indeed workout, perhaps you could wholesale the deal to another investor? That way your family is still able to get out of their bad situation and you get a fee for providing an investor with a good option (if the numbers do indeed work out)

Best of both worlds?

@Joshua Herald, what an inspiring story! Thanks for sharing and congratulations on the success

Personally, I would keep the duplex in California and set aside that $600 per month cash flow into a "down payment fund" and just let that cash flow purchase your next property in the Midwest. 

You're getting $7,200 a year now with 0 invested by holding that duplex. That's pretty darn good. Just keep that ball rolling and let it gradually buy you more units over time. That way you don't miss out on potential future California appreciation and you still get to increase your cashflow over time.

Arkansas does actually have some great cashflow opportunities. I'm looking to expand my portfolio into Arkansas rentals right now. There is definitely good value-add opportunity in parts of Little Rock, Jonesboro, and over toward Memphis too. The opportunities are out there you just have to dig a little deeper and get creative.

There are lots of 2bd 1ba that are like 1,200sq feet which could easily be bumped up to 3bd 1 or 1.5ba to increase value and then in turn the rent you could receive. 

I think getting your real estate license there is a great option.

I learned as much as possible until I could explain the process in detail, in under 2 minutes, to anybody. Once I reached that point I found people I was talking to every day would approach me about partnering on deals. It's a lot easier to come up with 10% down and have a partner put in the other 10%. Just be prepared and ready to do a lot of the leg work ahead of time. Know the markets you are looking at, be able to speak confidently about the property and neighborhood class you are looking at. When you exude the confidence and competence on the matter, partners will present themselves. Even if you haven't done a deal, the fact you have done a ton of the leg work and the research is an asset in itself.

@Ian Ippolito, thank you so much for correcting me on this. I definitely had some misconceptions and misunderstandings. I appreciate it! 

@Miguel Matos, great point. If your plan is to stay there until you qualify for an FHA loan, then move out and rent out the first place, then I probably would go with your plan. As long as you have a very clearly defined scope of responsibilities with your sister. Treat it like a legitimate business partnership. Not a bad idea at all though.

I'm a little confused by this. Are you trying to flip it? How in the world will very minor rehab nearly double the value of the property? As far as rents go, it is WAY below the 1% rule, so you're probably not going to be cash flowing positively. It might cost you money own it. 

Can you add a little more information? What's your goal? Time horizon? Financing? Taxes, property management, insurance, etc. 

You don't NEED to partner with your sister to buy a duplex you're planning on living in. You can use an FHA loan and put 3.5% down on a duplex, triplex or quad. You'll be able to do that for 30k no problem, and you can still rent out one of the units to your sister if you want to. Just food for thought.