All Forum Posts by: Steve M.

Newbie Investing Out of State = Just Don't Do It

Get familiar with local real estate ... Do a couple deals locally and get your feet wet.  Too many people looking to take advantage of Newbie's that don't know any better.  

With the information given ... No

Numbers seem to be inflated.  $800-900 for the "Waterfront" Condo side, that means the other "Alley" side would have to rent for $1200 - 1700 to reach your goal of $2000 - $2500

Something just doesn't seem to add up.  Obviously do your DD, but I likely wouldn't pursue to hard.  Unless you're ready for the commercial market, I'd stay far, far away.   It could be a nice entry point in to commercial with a Mixed Use Building, but I'd still be incredibly erie :)

Good luck either way!

Memphis ....

*enough said

Once I was fully out of Memphis, I was finally able to sleep soundly.

Deals are abound, but terrible tenants and blood sucking PM's and so called "Investment Firms" abound as well.

Sticking to what I know, in area's I know, is what I'm all about now.  I will never be a long distance investor .... Luckily, I escaped with my pride and a majority of my funds still in tact :)

I stick with low crime areas ... I pay a bit more for my prop's than probably most here, but with that come Class A Tenants, school zone's that are HIGHLY sought after, and LITTLE interaction with tenants.  In my experience ~ Class A Tenants I almost never hear from.  Its wonderful :)

From briefly looking at Trulia's crime ratings, they look relatively accurate :)

Batteries, Bulbs, Basics = On the tenant.   If they ask me to do it ~ I tell them where the nearest hardware store is.

I'm a bit more proactive on pest control & landscaping.  It doesn't take much neglect to really cause an expensive problem.

Mowing is on the tenant ~ roundup & grass seed isn't bad so should they decide to neglect weeds, its not a huge deal. Flower beds, tree pruning, etc... I pay my landscaper to take care of twice per year. I also spray twice per year around each SFH. It keeps a majority of the bugs (and ant calls) away, and I don't have to worry about an infestation at the end of the lease term.

Just my $.02 cents :)

Allowance?  Nope, never, nada ...

I have an old fence up at one of our rentals.

I have a clause that both lessee & lessor initial that states if/when that fence decides to finally fall down, I have the option to repair, replace, and/or remove.  I'm leaning towards removal :)

I utilize a PO Box as well.

It wouldn't be hard for our tenants to find out where we live (tax assessor's online tool) ~ But for $50/yearly ... it gives me a bit more piece of mind :)

I do the same as the above.

My welcome packet also includes the most important information I can think of ~ Utility Companies for each specific utility and their appropriate phone number and a reminder that all utilities will be shut off (out of our name) 3 days from the start of the lease.

What questions do you have on them?

They have to be OO's -- Limited Money Down (3-3.5%) -- Great for first time home buyers.

My first house was with an FHA Lender. No issues with an interest rate at about 4.75% (this was about 3 years ago) ... Refinanced out of it last year in to a conventional 15 at 2.75% :)

I prefer conventional with atleast 20% down so you don't have to pay PMI (Private Mortgage Insurance) If you have the means to go the conventional route -- I'd suggest that route.