Chatham Village Condo for Rent

Great Condo in Chatham Village for rent again. Previous tenant was evicted by the D.A. for improper conduct. So, I need to fill it. Only $795 a month.

Memphis House Values

I bought a house on Kaye Road near Eastgate Shopping center in 2007 for $90,000, spent $10,000 on it and sold it for $118,000 6 months later. That house is now worth about $120,000. Another house I bought near the University of Memphis in 2006 for $60,000 and put in $10,000 I sold for $86,500 at the peak of the sub-prime bubble. That house is now worth...get this...over $100,000! Why did the "cheaper" house appreciate more than the "expensive" house? Location, Location, Location! The houses near the University seem to be always more desirable because there is a steady stream of students looking to rent and parents wanting to buy regardless of the economy and interest rates. The moral is to invest in areas that are near University and in stable neighborhoods.

Is your propery appreciating or depreciating?

Just for laughs, I checked the Zillow prices on a few houses I bought and sold. One house in Nashville I sold bought for $53,000 and sold in 2004 for $105,000 has appreciated to $175,000! In less than 5 years, it has increased in value over 75%! This house is located in West Nashville at the edge of Belle Meade and Hillwood. Another house I built for $240,000 and sold in 2 years for $318,000 has depreciated to about $275,000. Why did one go up and one go down? Location. The larger, more expensive house is near Bellevue, which is about 20 minutes from downtown Nashville and there has been a lot of new construction out that way. Whereas the older house built in 1954 is in an established neighborhood where there is no new construction. What that teaches us is that for value, it pays to invest in stable neighborhoods.

Great Deals Are Everywhere

Can you believe that houses in Detroit are selling for as low as $1000? I saw a picture of an $8000 house that only needed about $4000 in work that looked like it would rent for at least $1000 a month. Here in Memphis, there are plenty of great deals. Look at this one that is available for only $55,000. If you are interested, let me know.

Let Me help you invest in undervalued markets~~

I am pleased to annouce that I now have readers in 63 countries! I am working with several owners to find investors looking to increase the depth of their real estate portfolio. I have access to foreclosure and short sale properties that you may be interested in. Please let me know what your budget is and I will put together a package deal with units either rented or empty that fits your investing strategy. I am working primarily in the Memphis and North Mississippi markets where most investment property is selling for around $50-$60 sq. ft. and it rented for $80-$90 sq. ft. I currently have houses, condos, apartment buildings and retail space available including one restaurant location in a prime area. Interest rates are low and inventory is high. Let me know what you want readers in 63 countries! Call me or email me hear. 901.692.0645 is my direct line or email me at dgold@yourhouseauctions.com.

Dropping Interest Rates

Wow! Fellow investors. I have heard of 30-year rates as low as 4.75%! The time to buy is now. I have started looking again. There has never been a more optimal time to get back in the investing market than now. Don't expect to make money flipping as the supply is too high. You will need to buy some homes with the intent of holding onto them for at least 2-4 years. I have two properties rented now throwing off about $1700 per month with debt service of only $900. So, I need to buy more units. Finding tenants is easy. Just try craigslist or a for rent sign in front of the property. Good luck and let me know what you get.

Investor Property Purchase Consulting

I now work with Pyramid Realty in Memphis to offer help in finding investment property for your portfolio. For a flat fee instead of a percentage commission, I will assist you in finding property and give you a price for fixing it up. Whether you want a turn key investment or a project, call me for guidance.

Services Offered by Your House Auctions

So many people have been asking me how I can repair, remodel and restore my propery at such a low cost, I am offering this service to the general public. I am an account executive for Superior Remodeling, a Licensed Contractor. We can help you repair or replace roofs, put in new flooring including acid washed concrete, hardwood and tile. We can remodel a bathroom or kitchen and take on just about any project you have. You have seen the quality that I have done. Now you can have the same for yourself at an affordable cost. Call me for more information. 901.692.0645.

New Vinyl in Bathrooms After

Here is the new vinyl in the bathroom.

New Vinly Floor in Baths

This is a picture of the old nasty vinyl.

New Carpet adds Value

As you know, I purchased a condo this month with the intention of either renting it or selling it. Well, I decided that it would do better with fresh carpet and while I was at it, I went ahead and replaced the flooring in both full baths upstairs. After shopping around, I decided on Lowes who offered me no interest and no payments for 12 months. I purchased 907 sq. ft. of carpet with new pad installed for $1600 including tax. The vinyl in the bathrooms added another $500. So for $2100 I got new floor covering in all rooms that did not already have the Mexican tile. Also today, I rented the unit for $850 per month. So after expenses I will profit $200 per month on this property. I still will market it for the purpose of trying to sell it, but in the mean time, I have a renter who is buying me a condo and giving me gas money! The first picture shows the old carpet and the second shows the new.

Rising Rents

As more and more people are being forced out of their houses, I see an interesting trend in rental prices. They are increasing. Supply and Demand dictate what rent can be charged for a property. With so many people losing their house do to foreclosure or ARMs that adjusted so high that they cannot afford to stay, people are turning to renting in large numbers. I know that a nice 2bd, 2ba property in a good neighborhood in Memphis should easily rent for at least $750 per month. But, since more people are looking for them, a landlord may be able to get $850 or $900 if he should make his property more attractive to the renter. I will be providing Refrigerator with Ice maker and water dispenser, Washer and Dryen in the condo, Tile floor in Kitchen along with Dishwasher and Disposal and onsite pool. The den has a wood burning fireplace also. I expect to rent my unit for $850. My note PITI and association dues are $500. I should cashflow positive $350 per month on just this one unit. Not bad.

New Real Estate Purchase

Last week I closed on a 2 bedroom, 2.5 bath condo in Cordova near Wolfchase Mall. The tax assessor has it appraised at $62,500. The seller wanted $50,000. I offered $43,000 with the appliances and she took my offer. There is the $150 association dues that seems high to me, I don't plan to have it that long. My exit strategy is two-fold. I want to replace the carpeting with new carpet and replace the old vinyl floor in two baths with new vinyl. After I do that, I will simultaneously advertise it for sale and for rent for around $900. I don't expect to get that much, but you never know. I will either sell it rented or vacant. Rented, I think I should be able to get at least $60,000. Vacant I should be able to get around $53,000. Either way I come out nicely.

860 houses

According to the Memphis Business Journal, only 860 houses were sold in Shelby County in January of 2008. This represents a 35% decrease in sales in Shelby County year over year. However, that does not mean the market is stagnant, if fact, it is a great oppurtunity to pick up bargains too.

Ground Fault Outlets

Ground fault outlets are those outlets with the little red reset button in the middle. You sometimes see these in hotels in the bathrooms. They prevent the outlet from shorting out in case it gets wet. These outlets cost about $7.00 and are really a great selling point when you remodel a house. Be sure to have a licensed electrician wire it in for you. I finished a house and used one in each bathroom and 4 along the backsplash in the kitchen. The purchasers really were glad that they were there as they have a 4 year old son. They don't have to worry about him dropping the hair dryer in the tub now. The internal breaker will trip before he is injured. I highly recommend you consider these in bathrooms and kitchens.

Beware of the Odd Floorplan

I recently saw a house (around 2400 sq. ft.) that had an asking price of $225,000 which was below the prices of most other houses in the neighborhood. It was a 4/2 that was totally remodeled. It had two bedrooms downstairs that shared a bathroom. Upstairs were two bedrooms on opposite ends of the house that shared a bathroom. The floors were gorgeous, the walls were painted a neutral color, the interior doors were new. I know why the house isn’t selling. It lacks a master bathroom. The master bedroom shares a bath with another bedroom. Also, this bathroom is in hallway rather than connected to the bedroom. For $225,000, you would expect a master bath. Even if I could get the house for $195,000, I doubt it would sell quickly. Until a master bath is added, this house will probably remain unsold unless a very specific buyer comes around. I could imagine a single parent looking to move into a good neighborhood that wanted a “separate area” for two children to each have a bedroom. Also, there was an addition that could be used for a game room that led to the outside. If the parent did not mind going down the hall to use the small bathroom, this would be an acceptable house. But for $225,000, you would expect a master bath.

One that got away

I found out that the house I bid on this week won't be added to my inventory at this time. The seller had the Agent email the following reply. "Our price doesn't include the furniture. You can tell him that I have no reason to sell that low and will not even counter. I have had some other options come up." Apparently this seller is more interested in listing his house than selling it. He had too much pride to even make counter offer. Don't let pride get in the way of your real estate investing. I feel no shame that the offer was rejected. You must kiss a few frogs before you get your prince. If every offer you make is accepted, you are offering too much.

What do we learn from this, keep playing the game, keep hunting houses and eventually you will get a good deal.

House that sold in Memphis for top dollar

Here is a house that just sold for $83,500 and the tax assessor had it appraised at $65,500. Why did it sell for 1/3 over the tax assessors appraisal? Because it was redone nicely. First, it has great curb appeal. Next the interior was repainted a soft, bright, cheery creme color. New light fixtures make the interior as nice as a new house. The built in bookshelves really help also. Look at the tile floor in the kitchen. These are the cheap less than a dollar type but still look fantastic. The countertop is new but the cabinets are older but in good condition. This seller did well. I would estimate that these renovations were done for around $5000. Great job. Remember, value sells.

Question from Amy

This question was sent to me by one of our readers.



I saw your post on craigslist and used the link to your blog on house auctions. I have a question for you. I am not a house flipper but my husband and I are only going to be living in our currrent home for 2 - 1/2 years. It's a bit of a fixer upper in East Memphis. We are trying to do the work ourselves and are planning to put in a new kitchen. My question is: Where can I get the best deal for cabinets and countertops? We may try to do that ourselves but for the right price we may hire someone to do it. I don't want to sink a ot of money into this house but the kitchen must be redone.Any suggestions for kitchen renovations without spending lots of $$$.



Great Question Amy!



I told Amy that she should consider looking at the cabinets and sink I removed from a house in Collierville that I worked on over the weekend. People are more than happy to give away their old cabinets, toilets, sinks, islands, countertops. You just have to know who to ask. Try to get in with some house remodelers and call them. Look in the yellow pages under remodeling. Call about 10 and tell them what you want. They usually will even deliver it to your house for a small fee. I highly recommend this since usually the items are free.



If that is not an option for you, I hate to say it that Home Depot has some great prices. Sure, you get what you pay for, but for what I do, custom kitchen stores cannot touch their prices. Formica is usually $10 a foot or less. Cabinets can start at $46 for a standard 18 wide by 30 tall cabinet unfinished. That works out to $2.55 plus tax per inch. So if you have a standard 10 foot wall that needs cabinets, look to spend about 120 inches X $2.55 which is $306 plus tax.



I have compared the high end cabinets like Kraftmaid and although the quality is phenomenal, you won't get that back out when you go to sell unless you are flipping houses in the $250,000+ range.

When it comes to countertops, I don't recommend Corian. It is usually more expensive than granite and is considered a step down from it. Cheap granite can be found for $40 a foot. If you are doing a countertop for a bathroom sink, it may be worth it to get a 2 foot piece for a bathroom. Granite really does look rich. If you want to set your flipper houses apart, some granite can really do the trick.

My Latest Offer on House

I put an offer in on a 3/2 yesterday. The house is has decent curb appeal, as you can see. If I get the house, I can assure you that I will repaint the pink on the front a more trendy color such as beige or brown. This 1950 house is a one owner house. It has been in the same family since new. The owner passed away over 8 months ago and the house is in the estate. The executor is the son of the deceased and the house has sentimental value to him. It still contains most of the original 1950's furniture also. My bid included the furniture because it was in great shape. The walls are wood paneling and knotty pine. I personally don't like knotty pine because it is so dark, but at least it is clean. There are hardwood floors under the carpet that is perfect. This 1250 sq. ft. house with central HVAC would sell for $120,000 or more if renovated and it was in a more desirable neighborhood such as University of Memphis or Highland Terrace. Unfortunately, it is not. The asking price was $84,900 and I offered $60,000 with the furniture. The tax assessor has the house at $66,700.

I know that the agent for the seller will work hard to try to get the executor to accept the bid. This house has been on the market over six months and since I am not represented by an agent, the sellers agent can take all 6% of the commission. If another buyer was represented by an agent and the offer was $84,900, the agent would make LESS money than she would with my offer at $60,000. That is the harm in the seller getting an agent. She is now in a funny situation. I have taken away her financial incentive to refuse the deal by making a cash offer without an agent. I will keep you posted.