11/20/23 – Reno Update – We have completed the work at the property but discovered an issue in that a tree in the back yard has fallen on one of the wires running to the electrical pole. MLGW will need to repair it so that power can be supplied to the house but before they do, we’ll need to remove the tree off the wire. You’ll find a link to the final photos below and another link to the proposed tree work. There’s a highlighted line that traces the wire and the trees/branches highlighted in red are what we’d need to remove. You’ll be able to see the one that’s clearly on the wire. The other two locations are of a tree that’s fallen on the fence and the other is of some branches that are hanging over the service wire above the garage/shed that will be a good idea to go ahead and trim back now while we’re at it. It’s overhanging the wire also. The proposal to do this is $850. Let me know what you think. Link to Photos Tree Work
10/24/23 – Deal Summary Part 2 – One of the appraisers that we have been working with is staying really conservative on the properties that we do not complete major renovations on (acquired in “move-in” condition). I wanted to look at another Worst Case Scenario if we were to draw this appraiser and she “stuck it to us”. I reduced the appraised value to $85,000.00 and even at $995 per month in gross rent, this is still a great deal. I will check with Heather on minimum loan value. If this was the appraised value and our max loan amount was below GRFCU’s minimum loan amount, we can pair this property with another property that we are refinancing.
10/21/23 – You’ll find the link to the walk thru photos below. The property is a 3/1 and located in a D location. For this one, I’d recommend changing out the outlets and switches. They were pretty dirty and bad looking. I’d also recommend installing new attic stairs because the present one is damaged and difficult to manage. We’d also clean, cut the grass, and a few other miscellaneous repairs. To do those things, you’d be looking at 2k-3k. It includes our fee but less since this is a small job.
Roof: The roof was fairly new and in good condition.
Exterior: The exterior was in good shape.
Interior: The interior was in good overall condition.
Mechanical: The property had central heat/air. The mechanical equipment was in good working condition at the time of the walk thru.
Electric: The property was on breakers.
Gas: The meter was present and unlocked.
Appliances: There was a fridge and stove present at the time of the walk thru.
Additional: The dryer was in a separate room from the washing machine. It’s a bit odd and if you wanted to change it, you could opt to move the washer connections or configure both connections to allow for a stackable unit. If you went with the stackable route, I’d advise that you supply the stackable unit since tenants in the Memphis market don’t typically carry them. Moving the washer would have you looking at about $900-1.1k and if you went with the stackable route, you could be looking at $700-$900, not including the purchase of the unit.
Pictures: Walkthrough Inspection
Confirmed market value: $114,000 to $126,000
Confirmed market rent: $1,150 to $1,250