@katya_belov
Leasing agent by day, about 200 showings a year, so I know exactly what a tenant says when the closet is too small. Started wholesaling on the side and now have one Phoenix contract and one Memphis contract closed and no idea which market to commit to. Also hold a fourplex in Columbus that I mostly ignore. If you have opinions on Phoenix vs Memphis I will read all of them.
The facts
Posts
I closed a Phoenix contract sub-to at 4.1% in March and my attorney flagged the due-on-sale language but told me enforcement is rare. I want a number, not "rare." Has anyone actual…
Thread · 19 points
Phoenix took me four months to get that contract, one call-back out of 300 dials, and I had to split the fee with a transactional funder because the buyer needed a funded close. Me…
Thread · 14 points
That 550 expense figure on a single tenant house feels optimistic before the first repair call.
Reply · 0 points
The HVAC story is the part I'd push on harder. Equipment failures are real but a deferred replacement on commercial HVAC should have shown up in the inspection or at minimum in a c…
Reply · 0 points
Most fund docs I've seen gate on 10-15% of NAV quarterly, full stop, no maturity linkage at all. What I'd want to know before trusting any manager's liquidity story is what their …
Reply · 5 points
How do sponsors actually calculate the IRR they show in the deck when the cash flows are uneven
Two points is real money on a 38-month hold, so do not let them wave it off. Before you go back to them, check what date they are using as day one in their model. If they treated f…
Reply · 6 points
The carry math on a BRRRR deal is where most people discover the rehab budget was wrong
The one thing I never see work is treating the appraisal variance as a refinance problem when it is actually a comp selection problem that happens weeks earlier. By the time the ap…
Reply · 10 points
Nobody runs the simulation beforehand because the data you need to run it doesn't exist at the point of commitment. The fund is not going to tell you what percentage of its LP base…
Reply · 9 points
Inspectors in Phoenix almost never ID the species, just write "roach activity noted." Had that exact line on a Glendale duplex last year, assumed American because it was a slab fo…
Reply · 10 points
My Memphis deal last year was an 18k spread and I did the double close anyway because the seller was a hoarder who had listed the property twice before and pulled it both times whe…
Reply · 12 points
Two years of monthly data is a floor, not a finish line, because even 24 months can include a full delinquency cycle that looks like a pattern when it was actually one bad batch of…
Reply · 17 points
Why does every STR expense guide assume I own the place twelve months and rent it zero days myself
The mattress is where this gets complicated for me. A $3,200 HVAC repair during a documented rental gap is one thing, but a mattress in a sleeping loft used by both guests and you …
Reply · 8 points
The lot you comp off an existing street does not price a teardown lot the same way
Phoenix teardown I closed last year, the demo bid I had in hand at contract was $18,400. Actual cost came in at $24,100 because the original slab had a thickened edge beam the cont…
Reply · 14 points
My first full-cycle equity deal just closed and the IRR came in at 11.2 percent net over 38 months.
What was the exit, refi or sale? Because 38 months is short enough that if they sold into a soft market they might have left 3 points on the table just on timing, and that explains…
Reply · 13 points
Borrower equity versus lender equity in a gap piece, and where the split should sit
Twelve percent junior with no equity kicker feels fine until month nine when the senior calls default. My Columbus fourplex refi had a gap-adjacent mezzanine piece and the thresho…
Reply · 16 points
That Memphis math you laid out, 110 purchase, 175 ARV, and a rehab that clearly is not a 52k job, I have seen that exact listing logic and the rehab is usually closer to 85-95k onc…
Reply · 10 points
The 90 percent asset test looks mechanical until a fund misses it by timing a property sale wrong
What's the fund's realistic redeployment window in Phoenix versus Memphis, because those acquisition timelines are not the same.
Reply · 18 points
Eleven contacts in week one means the list is definitely being resold, not just pulled by more investors independently.
Reply · 13 points
What I want to see is the T-12 actual rents next to whatever NOI is propping up that refi valuation in year two, because if they're banking on a cap rate compression to hit the ref…
Reply · 12 points
My Memphis funder gave me indicative pricing off the A-B alone, no end buyer name required until 48 hours before closing.
Reply · 10 points
Someone paid me to source four deals in Tulsa and now wants to renegotiate my fee after close
The "felt high once he saw the numbers" line is doing a lot of work there - if the numbers looked good enough for him to close all four, he's not unhappy with the deals, he's unhap…
Reply · 7 points
Two years of net-only recording on nine doors is annoying to unwind but the math is actually retrievable if she is sending you monthly PDFs going back that far. I did almost exactl…
Reply · 13 points
My agreement says "agent recommends professional staging" and that word recommends is doing absolutely nothing.
Reply · 12 points
Wholesaled one tax lien adjacent deal in Memphis and the seller's attorney kept referencing the statutory rate like it was actual expected yield, and I had to pull the last three a…
Reply · 6 points
The best buyers on most dispo lists are not buying from the list anymore
The 1.5 percent line is what got me. In Phoenix my last contract moved at 2.8 percent dispo and still closed in eleven days, but it went to one buyer my partner had texted before t…
Reply · 6 points
The county recorded the road as public in 1991 and nobody has graded it since
Memphis and Phoenix both have rural fringe markets where this exact situation comes up, so I'm watching this thread closely. On the terms sale question specifically: I closed a wh…
Reply · 11 points
Your rents at $9,400 on nine units is $1,044 a door, and Elk Grove Q1 comps you mentioned suggest the ceiling is around $1,220.
Reply · 15 points
My note guy told me the capital never actually leaves a BRRRR deal, it just changes shape.
What's the cash-on-cash on those six houses after nine years of carrying debt?
Reply · 9 points
Rolled six months of mREIT dividends into a second position and the compounding is finally visible
The EARN spread holding is the part worth watching most carefully. Smaller book means one bad hedge quarter can compress that advantage fast, and you won't see it coming until the …
Reply · 6 points
Had this exact clause bite me on a fourplex in Columbus, Ohio in 2022. My lender counted from the first draw, I pulled the draw on day one of closing because my GC was ready to go …
Reply · 18 points
If the $61k was budgeted from day one, it exists in writing somewhere and the borrower knows exactly where. Mine was a four-lot split outside Tacoma, 2022, engineer flagged a drai…
Reply · 15 points
Does a servicer actually have to respond to the note holder, or is the holder just hoping
The seller is still your lever here, not SN. Six weeks post-closing the seller should be making calls on your behalf because the boarding gap is their mess, and if that is not in y…
Reply · 7 points
