All Forum Posts by: Tyler Tapley

Hi

We are very familiar with this company plus their competitors.  They have rehabbed and sold thousands of properties...I think they do a good job of handling the rehab plus they put in "market rate" tenants.  What I mean is...they don't get tenants to over pay and thus the tenants can't afford to stay there long term.

There are a few good management companies in Memphis.  It honestly depends on the area, the property itself (is it Class A, B, C, D)? and if you are wanting to rent it out section 8.

Let me know if you need any further help.  I don't manage properties so I don't have any incentive to give false information.

Yes....I've seen 2/1 properties that have a walk-thru 3rd bedroom being marketed as a 3 bedroom home.  Overall I think the main turnkey companies do a really good job...we definitely need them (they help fight blight, give affordable housing, provide jobs, etc).  Unfortunately we see some smaller level companies try and cut corners.

There are some good turnkey providers in the Memphis area and there are a few bad ones.  Overall the rehabs they do are pretty good...I would worry that you may have a tenant paying above market rent (to make the numbers look good).  There are a few turnkey companies that only focus on Class A or B areas which is nice...

Per the Memphis Area Association of Realtors...here are the latest statistics and facts.

August Market Report
MEMPHIS, Tenn., September 13, 2024 – Memphis-area home sales for August
decreased 8.5 percent from a year ago, with 1,460 total sales recorded in the Memphis
Area Association of REALTORS® MAARdata property records database. Sales were up 0.6
percent from July, when there were 1,451 total sales. Average sales price from August-toAugust was down 1.7 percent, at $274,863. Inventory increased 6.0 percent, with 3,981 units
listed for sale. Sales volume YTD increased 3.9 percent, to $2.94 billion.
August Comparison
2024 2023
%
Change
Total Home Sales 1,460 1,595 -8.5%
Median Sales Price $214,950 $225,000 -4.5%
Average Sales Price $274,863 $279,655 -1.7%
Monthly Sales Volume $401.3 million $446.0 million -10.0%
Year-to-Date Comparison
2024 2023
%
Change
Total Home Sales 10,905 10,474 4.1%
Median Sales Price $210,000 $220,000 -4.5%
Average Sales Price $269,216 $269,474 -0.2%
Monthly Sales Volume $2.94 billion $2.83 billion 3.9%
Historical home sales statistics are located at https://www.maar.org/newsevents/market-statistics/.
“Ther... was a slight bump from July to August in total sales,” said MAAR
President Scott Bettis. “The increase in inventory means fall buyers have more options.”
Serving the Mid-South for more than 100 years as the Voice for Local Real
Estate, the Memphis Area Association of REALTORS® serves and represents real estate
professionals as well as provides real estate information to the general public. About
4,800 members unite to make up one of Tennessee’s largest local REALTOR®
organizations with real estate expertise stretching throughout the greater Memphis area.
The MAARdata system includes records of all single-property transactions in Shelby,
Fayette, and Tipton counties. The MLS includes listings in Shelby, Fayette, Tipton,
Hardeman, Hardin, McNairy, and Lauderdale counties in Tennessee; DeSoto County in
Mississippi; and Crittenden County in Arkansas.
MAAR members subscribe to the National Association of REALTORS® Code of
Ethics. For more information, visit MAAR’s Web site at www.maar.org.

Both are good options, the problem with Turnkey is that sometimes you are paying a premium price and you may not have much appreciation.  Also---you need to make sure whoever did the rehab did it correctly (no point in paying a premium price is the work isn't done correctly)...lastly if you pay for a turnkey property...how do you know the tenant is paying a market rent and is a good tenant (credit score wise, payment history wise) etc?

Put simply...I've seen turnkey sales that were done terribly in terms of rehab, weren't in great locations, and had tenants that were paying over market rent (to make the numbers look good).  That rent just isn't sustainable and tenant could be unable to continue to pay...or could look elsewhere due to it being above market.

Message me please and I will be happy to help and send it to my clients.  We have about 800 investors throughout the world.

You can still do BRRRR deals here. Some are incredibly simple and require little to no repairs. You can search my name and see some interesting examples from clients that are pretty cool.

I would be very careful of buying properties via the land bank. You can do it but they don't offer title insurance and therefore the lots are very affordable (and worthless). There is a reason they are being sold via the Land Bank. I have several of vacant lots listed bought from the land bank and they are worthless. Those are properties/parcels that didn't sell via the regular tax sale. Many of the good tax sale properties are getting bid up online. I used to have several out of state investors who would buy houses in Memphis via the online tax sale auction, then hold them for a year so the redemption period ended, then they would hire an attorney to "quiet" the title which would take 4-6 months and cost roughly $5000 but then they had clear title and would sell it "as-is" to other investors or hire me and list it on the MLS and get higher offers. It was incredibly lucrative...but got competitive and they couldn't buy them online anymore because the prices got too high.

Hey @Jack Hamm

On the first few deals it's really normal to be very picky. You really need to be. Your first few deals not only get your bank roll going but they also set you off on the right foot if you have success. If you run into a bunch of trouble up front, it can be hard to stay motivated to keep going. I would suggest you connect with experience investor focused Realtors in each of the markets you're looking in. I suspect after you have a few under your belt you'll find that you're able to be more flexible. I hope this helps!