Available
$
149,900
1218 WILMORE ROAD
MEMPHIS, TN 38117
2 BR • 1.5 BA • 1,031 SQ FT
  • Target Rent $1,295
  • Cash on Cash Return 8.0%
  • Total 1 Year Return 40.1%
  • Neighborhood Score: A++
Available
$
194,900
20 Garden Springs Drive
OAKLAND, TN 38060
3 BR • 2 BA • 2435 SQ FT
  • Target Rent $ 825
  • Cash on Cash Return 2.6%
  • Total 1 Year Return 41.8%
  • Neighborhood Score: A++
Contract Pending
$
86,500
3772 Rainford Drive
MEMPHIS, TN 38128
3 BR • 2 BA • 1,096 SQ FT
  • Target Rent $850
  • Cash on Cash Return 11.2%
  • Total 1 Year Return 42.5%
  • Neighborhood Score: B


Buy Your First Investment Property 1-2-3

Buy Your First Investment Property 1-2-3

1. Develop a Strategy

It’s all well and good to say you want to invest in real estate. It can be a great investment and can bring you in a good monthly cash flow, buy you shouldn’t just jump in and buy the first available property you see. You need to go in with a plan. For instance, are you handy with a tool kit? Can you see yourself doing maintenance and repairs on the property after you get a tenant? Do you want to handle vetting tenants and collecting rent on your own? How much time and money are you willing to put into renovating a distressed property you bought cheaply. These are the kinds of questions that need answers before you even start looking at properties.

If you don’t feel like renovating then obviously, you will want to find a more turnkey situation. You might pay more on the front end but often you will not only have a well-maintained property but have tenants installed so you can start collecting rent immediately.

If DIY isn’t your thing or you don’t want to deal with tenants directly then you should consider a reputable property management company. They can find you good tenants, collect rent, handle maintenance calls, and even deal with eviction problems, should they arise.

https://www.bbb.org/memphis/accredited-business-directory/property-management-companies?gclid=EAIaIQobChMImLPnp4Lc1QIVXrXACh3J_wpZEAAYAiAAEgJI7_D_BwE

https://www.narpm.org/find/property-managers/

Once you decide on your approach then you can move on to step two

 

2. Plan your finances.

Get your debt under control. Take care of student loans, unpaid medical bills, or any other debt before you start your investment portfolio. Unless you are paying cash for the property you are adding an unnecessary burden to your financial situation.

Then do your math. Calculate every angle of your investment.  What are your operating costs? What kind of interest rates can you afford? How long can you afford for the property to be without a tenant? Does the value of the property and the monthly income cover all of this and still leave you with a sufficient cash-flow? If you are working with a broker then they can help you with these calculations but there are many resources online that can help as well.

 

http://www.goodmortgage.com/Calculators/Investment_Property.html

http://www.calculator.net/rental-property-calculator.html

https://financialmentor.com/calculator/real-estate-calculator

 

3. Pick a property

It’s tempting to get out the newspaper or drive around town looking for properties to buy, but this is the 21st century. Don’t limit your research to your home town or even your home state. You can take advantage of varying home prices and economies all over the United States. You may live in an area with incredibly high house prices that will never return the value you are looking for, but with some research online you can find an area of the country that fits your profile much better.

Online forums such as Loopnet and Biggerpockets are your windows on the real estate world outside your home town. Making contacts with other investors and brokers around the country increases your access to properties that best fit your investment strategies. Also, a good investment broker will have the local knowledge you need to buy in the right neighborhoods and avoid war zones. They can also suggest management options and be your boots on the ground in the area.

https://www.biggerpockets.com/

http://www.loopnet.com/

 

REPEAT

You might be satisfied with your first investment property but you shouldn’t stop there. Your first property will consume lot of your time as you learn the ins and outs of being a landlord. Think of it as another part-time job. It will also be stressful both financially and emotionally.

If you own only one property and is sits empty for very long you are losing money monthly. If you own several, then the cash flow from the occupied properties can cover your expenses while you find tenants for an unoccupied house.

Since you’ve done your planning and found a network of brokers and property managers you can use this momentum to steadily increase your investment portfolio. 

Memphis

Memphis Investment Properties

Address: 4701 Summer Ave
Memphis, TN 38122

Telephone: 901-244-5820

Fax: 901-842-0803

Email: info@memphisinvestmentproperties.net