The Art of Flipping vs Turnkey: How to buy, flip, & rent properties for profit in Memphis. Tom Durhan, a master at transforming distressed properties into profitable investments, joins us to discuss the art of flipping vs turnkey rental homes. He tells his secrets to selecting the perfect property, understanding market dynamics, and executing successful flips in Memphis. Learn how Tom creates opportunities for other investors, ensuring each project not only enhances neighborhood appeal but also guarantees cash flow and tenant satisfaction. Whether you’re a seasoned investor or a curious newcomer, this episode offers valuable insights into creating wealth through strategic real estate investments, demonstrating the power of patience, expertise, and local market knowledge.
Brett
0:00:55 – Welcome to It’s 5 O’Clock Somewhere Real Estate Podcast. We’re not experts. We actually know what we’re talking about. Today, we’re going to be talking to a good friend and a client, Tom Durhan, who’s a flipper. He buys, flips, rents. Yeah, pretty much everything. So stay tuned.
Sponsorship
0:03:58 – We are sponsored by Title Assurance and Escrow, a title company here in Cordova that does all of our closings, title work, escrows, and we only use Title Assurance and Escrow. That relationship is very important because we can get things done for our investors quickly and easily. So to speak with Title Assurance and Escrow, call 901-737-3332 and ask for Chris or April.
Brett
0:01:38 – Tom, welcome.
Tom
0:01:39 – Thank you, Brett. Appreciate you.
Brett
0:01:40 – We’ve had Tom on before. I don’t know if we’ve had you on the new podcast. We had you on the old one, right?
Tom
0:01:45 – Yeah, it’s been a while.
Brett
0:01:46 – Yeah, it has been a while. You never came over to those two at Glenn’s house?
Tom
0:01:49 – No, I was there a couple of times.
Brett
0:01:50 – You were there, okay. Yeah. All right. So anyway, many of you may remember Tom. He’s a good friend and a client of ours for several years now. Tom buys distressed properties, rehabs them, puts a tenant in them, and then we turn them back to our team and then we flip them out on the open market as turnkey rental properties.
Tom
0:01:57 – Correct.
Brett
0:02:07 – We have investors that want to buy rehab projects and we have investors that want to buy turnkey rented cashflow properties. So I guess for the listeners, what I want to figure out is what areas, why do you pick a specific property? What are you looking for?
Tom
0:02:23 – That’s a good question, Brett. Basically what we look for is cash flow, a decent area. I’ll buy anywhere in Memphis, more or less, if we can find a good deal on it. Just finding a good house that needs, you know, that we can budget appropriately and get it tenant in and make some money selling.
Brett
0:02:40 – So you look at the ARV after rehab value, and then you look at the rental comps.
Tom
0:02:47 – Right, and you’re a valuable part of that because just like earlier today, I asked you, hey, what’s this house worth? If I bought it, you told me and the numbers didn’t work, so we’re not going to buy it So you’re a part of that equation too.
Brett
0:02:59 – Yeah, okay. I appreciate that. First thing you’re looking for is, I mean, it comes down to marketability. I mean, let’s face it, there’s certain areas of Memphis where the marketability is really low regardless of how nice the house is. And we’re experiencing that in a couple of properties that are kind of giving us, we got rid, no, we sold them, but they gave us a little bit of trouble because of the street. I’m of the belief that if someone goes into a street like Grenada, a couple of brand new homes were built, a couple of remodeled homes, you got one on, and now that street’s beginning to blossom. So I believe that just because there’s only one house that’s in good shape on the block have been rehabbed, in my opinion that’s a great time to jump into it because that means that street’s going the right direction.
Tom
0:03:36 – You’re exactly right, and that’s what we’re finding throughout Memphis. There’s so much out-of-town money coming in. It’s making a huge difference in neighborhood after neighborhood.
Brett
0:03:45 – What’s the percentage of rent that you look for when you evaluate a property? Are you looking for… Because obviously you know our investors buy a turnkey at 1% starting out. Do you base it on that?
Tom
0:03:59 – More or less. and we try and make 10 to $20,000 off selling it, ideally, we don’t make a ton, but so it’s gotta, we’ve gotta put, I’ll be all in if we’re gonna rent it for 1,200 a month, we gotta be all in for 90, so that we can sell for 100, 110.
Brett
0:04:15 – So that’s, what is that? You gotta be probably all in by 85% in order to make a profit.
Tom
0:04:21 – Right, and you mentioned something interesting, turnkey versus non-turnkey. It seems like more and more investors are buying distressed houses and fixing them up themselves. The problem with that is unforeseen issues.
Brett
0:04:37 – Yeah. That happens to you. You’ve been doing it a long time..
Tom
0:04:41 – It happens to me, right, all the time, like Shadcrest That was a mess, but there are properties that we’re taking the risk and we’re giving the turnkey and then we give a warranty. If you buy just a distressed property, you inherit the termite damage or all the busted pipes or find out all the wiring stolen in the attic. Those are all things that you inherit.
Brett
0:05:00 – By the way, I wanted to mention our website, mymemphisinvestmentproperties.com. We have a for sale link. On that page, you’ll see a lot of turnkey properties. Just keep in mind, those come with a one-year warranty with a tenant in place, cash flowing at 1% or better. So check it out. If you’re interested, give us a call at 901-692-7401.
Jeff
0:05:18 – Tom, do you buy the properties with the intention of flipping them for a profit. Correct. You always put a tenant in it. I’m assuming a tenant is a sellable item for a turnkey investor, security, cash flow, all the above?
Tom
0:05:36 – Yeah. I mean, having a tenant definitely helps because you’re a lot less likely to lose something in the house. And we do flip straight up flips as well, so we don’t always put a tenant in. Usually our A houses will sell just retail and Brett’s done a lot of those for me as well. But if you have a B or C house, if you have a tenant in it, much less likely you’re going to lose a condenser, furnace, water heater, whatever. I mean honestly, we haven’t, I don’t think we replaced a furnace this year or in the last year. We’ve been very fortunate. Yeah, let’s knock on the desk.
Brett
0:06:09 – Going back to that idea is that a lot of investors, they want that 1%, they want the cash flow, but they don’t want the headaches. We get a lot of young investors calling us lately. I’m getting a ton of calls. And yeah, they’re low balling and ask for owner financing. You’ve seen some of the offers. They’re quite comical. But at the end of the day, they’re looking for an easy buy-in with cash flow. Turnkey solutions are the way to do that. You buy a house, it’s got a warranty on it, it’s got a tenant in place, it’s cash flow and a 1% or better. But everybody, I have people that want higher numbers than that. But in Memphis, you’re going to get 1% start. If you get 1% starting out, you’re going to grow every single year. Even in the worst hit this city has taken back in 2008, our massive drop was like 21%, but then two years later we were even and exceeding our previous numbers. So the value is always going to go up, the rents are always going to go up.
Jerry
0:06:58 – Tom, at the beginning you mentioned budget appropriately. For our listeners, just what exactly does that mean?
Tom
0:07:07 – So when I see a house like Ore Street that we bought, at that time it had a hole in the roof and a hole in the floor and you know you could see the sky and the dirt ground so it was in bad shape so you buy something like that you have to get it a very reasonable price so you just got to go in and have in your mind from experience how much okay I’m doing a roof I’m doing all new sub floor all new framing all new kitchen all new bathrooms I’m doing all this stuff you got to be able to in your mind figure out okay well I’m putting $70,000 in this house. What do I need to buy it for?
Jerry
0:07:41 – Thank you.
Nick
0:07:44 – Does your rehab and your budget change, depending on if you’re gonna go with a retail sale versus a tenant occupied sale?
Brett
0:07:49 – Not really. Our formula, we make our houses really nice because we want to get the best quality tenant we can. And we’ve had really good placement at really good rates. So even, we may use higher grade materials like marble. If I’m doing a flip in Germantown, I may use marble. But flip in South Memphis, I’m gonna use 12 by 24 marble print. It’s still nice, but it’s a little cheaper products or materials we use.
Jeff
0:08:16 – Tom’s houses, you were asking rent ready or owner-occupant ready. I mean, his houses are pretty much, he’s a cut above rent ready.
Brett
0:08:26 – He’s between the two.
Jeff
0:08:28 – I mean, he’s that full blown retail.
Brett
0:08:32 – Not quite rent ready, not quite market ready, just right there in the middle, which is where you need to be for either or. We’ve sold a few owner-occupants, I think.
Tom
0:08:36 – We have, yeah.
Brett
0:08:37 – But most of them have been tenant-occupied properties. And I just think that most investors today, from what I’m seeing, buying a property that is already rehabbed, under warranty, with a tenant in place, is the safest and best solution because let’s face it, the cost of money is high. So that increases your risk on buying real estate. I don’t ever think that Memphis real estate is going to tank. We’re going to see these sudden dips and rises in the real estate, but you’ve been in it long enough, I’ve certainly been in it long enough, that I’ve never seen Memphis just take a bottom out drop.
Tom
0:09:10 – I agree, because nationally we were way below the national levels. We’re still, housing is dirt cheap here. You cannot get the returns we can give you in California. Nowhere can you go buy a house and get 1, 1.2% return. I mean, there’s just, there’s no way.
Brett
0:09:23 – Yeah, I actually spoke to a wholesaler yesterday that called me. He’s out of Nashville and we talked a lot about the 1% rule. And he says, you know, I talked to a lot of agents and they never mentioned the 1% rule. And I said, that’s why they’re crappy agents, sorry. Because it’s a basic bottom base rule that you use. And I always tell every investor, if you can start out at 1%, you’re only going to grow from there. 12% a year gross annually, that’s a great return. As long as you manage your property properly and you don’t, you know, let some management company nickel and dime you to death and you take, you get involved, you’ll do well with that property. So, but you replace all the roofs. You typically replace hot water heaters, condensers.
Tom
0:10:04 – If it’s not basically new, if the roof has less than about probably 10 years life left, we replace it. Yeah. And if we replace the roof, you have a seven year warranty, not one.
Brett
0:10:14 – That’s the thing, you’ll get a one year warranty, but beyond that, the new condenser’s got a seven year extended warranty, roof. All the other things still have warranties on them.
Tom
0:10:23 – Most of our houses, or their turnkey houses, have new HVAC, new roof, new water heater, most all of them do. Some, with some exceptions, some of them are already new, so we don’t replace them.
Brett
0:10:35 – I think you’ve hit on the right, I think we’ve hit on the right system. We see, Jeff and I see this all the time, and Jeff always brings this up to me when we get drinking some scotch down at the boat and talking about agents that go out, house is rented for 900 bucks a month, it needs work, and it’s listed for 135. So the simplest concept for buyers is if it doesn’t meet the 1% rule, walk away from it. Unless it’s East Memphis, Midtown, or some place where you know equity-wise you’re going to see a great jump. But most of the properties that are rental properties that you’re going to be dealing with in the 100,000 to 150,000 range, they’ve got to get 1% starting out. We’ve seen a slew of this. Jeff and I both have. Tons of agents just listing homes for
Brett
0:11:18 – $120,000 and renting for $950,000 a month. No one’s going to buy that. Because a lot of these homes need a little work too. They need paint, they need a roof.
Jeff
0:11:26 – And they need a full rehab. And you call the agent back. You know they want $75,000 for the house. You tell them you’ll give them $30,000 for it and they hang up on you. But you go back.
Brett
0:11:38 – That’s because they don’t know what they’re doing.
Jeff
0:11:38 – You go back into Paragon eight months later and it’s been on the market for 460 days.
Brett
0:11:46 – So I like the turnkey. I like the new construction. I do have guys like Amish and some of the guys that want to get into buying and rehabbing and building their own equity, which is a great way to go if you want to do that. But listen, that’s an uphill battle. Amish is finding out, Jeff is finding out the hard way that getting those properties are hard unless you’re a local builder or a local contractor. And my first conversation with Amish when he decided he wanted to do this is, Amish, you need to realize something. Their interest rates are up. A lot of builders are not building new homes right now, custom homes. They’re going out snapping up these rehab projects and doing those and flipping those. So to get a contractor, a local contractor, who will give a bid to a guy in California of $50,000 to do a rehab, that contractor probably can do it for $30,000 or $35,000. So the numbers change and they easily outbid out-of-town investors. So the flip game for out-of-town guys is hard. Nick, you’ve got an investor that’s unfortunately realizing that at this moment. She’s got what, three properties?
Nick
0:12:47 – Yep, two completed and, or supposedly completed, and then one under construction now.
Brett
0:12:53 – And she’s tight on all of them because she’s an out-of-town investor paying retail for contractor work. We still don’t know who the contractor is. I’d still like to find that guy’s name out, so. So let’s talk about what your plans are for this year.
Tom
0:13:08 – Well, we’re still doing the same thing. I mean, we’re just finding houses and building them up and turning them. We’ve got several new projects coming up that I’ve listed with you that we’re doing. The market’s good. We’re still finding houses at good prices.
Brett
0:13:22 – Like what do you see happening this year as far as the market itself? I mean we watched a little bit of a slowdown in the beginning of this year. We had quite a few listed. Now they’re starting to move slowly but surely. What do you see happening? Do you see a trend coming?
Tom
0:13:36 – I think a lot of it depends on the Fed. If they keep interest rates where they are, it’s going to probably continue at the level it’s at. If we can get some reductions, it will probably get better. Get in the gear. Yeah, if money gets cheaper, people definitely get better.
Brett
0:13:49 – So election year, interest rates have to come down.
Tom
0:13:50 – I think they’ll come down because it is an election year. Yeah, so when that happens, I think towards the end of the summer, things are really going to be cooking.
Brett
0:13:56 – What do you, one last question. We never really talked about this, but you’re… Jeff, you got a question?
Jeff
0:14:04 – What is the renter outlook? Are renters still readily available? Are the properties getting harder to find renters for? I know rent’s probably up 21% over the past four years, but, you know, you’ve got to live somewhere.
Tom
0:14:18 – Yeah, that’s a great question. There’s more inventory now, by far, than there’s been in a while. But what the separation is, our houses are still getting rented at a very quick rate. I finished one last week, it rented in one day.
Jeff
0:14:32 – You’re an MHA guy, right?
Tom
0:14:34 – Well, I do all. We do self-paying MHA.
Jeff
0:14:36 – But you do a lot of MHA.
Tom
0:14:38 – But here’s the difference. Okay, there’s a lot of guys that had really garbage houses and they were renting because there’s nothing out there. Those houses are sitting. The good turnkey, nice houses are getting rented quickly still. We’ve probably had eight houses get rented in the last two weeks.
Brett
0:14:55 – Yeah, I think the MHA, the Memphis Housing Authority, is paying the rents, so therefore there’s a lot more of those tenants willing to move and to find properties. The self-pay side of the business has slowed down a good bit, and the reason behind that is because of inflation. So you’ve got guys that work at FedEx and make four grand a month. Well, last year he had an excess, you know, certain amount of extra money left over at the end of every month. This year, because of inflation, he has very little money. If anything, he’s probably running a little bit in the negative each month. So that’s the last thing they’re looking to do is take a thousand bucks out of their pocket for a deposit to move to another house. They’ll probably just sign their lease and stay where they are. So I’m hoping interest rates come down, inflation gets under control, because then that will kick the private pay rental market back into high gear. And this is typically, right now, houses are flying off the rental market, you know, day one. It’s not happening like that now.
Jeff
0:15:50 – It’s a little slow. Well, MHA has a waiting list a mile long. I mean, they can’t find enough houses quick enough for these people.
Brett
0:15:57 – And that’s the difference is that…
Jeff
0:15:58 – Which is good for our business.
Brett
0:15:59 – Right. If you’re marketing MHA tenants where the government is paying the rent, which we have a ton of those people here, those people are readily available and out looking for houses now. The private pay people are kind of sitting back because they just don’t have the excess cash to put up deposits and move right now because of inflation. So that sector slowed down, but I’ve watched the MHA actually pick up.
Tom
0:16:22 – And honestly, that sector, I’ve had more defaults personally on rents in the last year than I did in the previous 10. Like just people because of inflation not being able to pay and having to move.
Brett
0:16:32 – Right. Just having to bail out.
Nick
0:16:33 – So with that being said are you holding some of these for yourself as rentals?
Nick
0:16:37 – I have a substantial personal portfolio that I’ve built up over the years but I’m not, we’re mostly doing the buy and flip right now. Occasionally if I find a house and in a really nice area and I get it for a really good price, I’ll buy and hold it for five years.
Jeff
0:16:54 – Do you self-manage or does TNT do most of your management?
Tom
0:16:59 – No, Andre does a bunch of my management, but I also use Advantage Property Management and Marathon Management. I have three property management companies. Just based on the grade of the house is who I use a lot of times.
Nick
0:17:08 – And back a little bit, you know, to your strategy, are you self-financing most of your deals or are you using hard money or how are you coming about these?
Tom
0:17:20 – That’s a great question, Nick. I use an equity line of credit because I’ve built up a lot of rentals. I can borrow, I’ve borrowed against them. So we buy on equity line of credit and then turn around and refinance it typically. So I’ll buy a house for 40, put 30 in it and then refinance it for you know the whole amount get it all back and then put it back in the kitty and then go Pete and go find the next one right so that’s how we do it I don’t do hard money loans anymore but those are great…
Brett
0:17:50 – But you start off when you start off I did you’ve got to use hard money that’s usually the best Avenue.
Tom
0:17:55 – Right and it was just right now money’s expensive.
Brett
0:17:57 – But you’ve been you’ve built your portfolio big enough now where you now have that kind of an asset that you can borrow against
Tom
0:18:02 – Right, and that’s the thing about rentals, it’s a marathon, it is not a sprint. You have to take your time and not get over leveraged and just really invest and try not to pull money out. If you buy three rental houses and you’re looking to make a lot of money off of them, you will fail.
Brett
0:18:18 – Our entire philosophy is slow growth, right? I’m not even going to mention the word, then don’t y’all say it.
Nick
0:18:27 – Seminar, seminar, seminar.
Brett
0:18:29 – Don’t get me started. So we get a ton of those guys. They come out of seminars and they’re going to get rich tomorrow, right? They’re going to buy 30 houses and, you know, most of those guys, they’re burning stars. They fly in, then they fly out and they’re out of business. So we preach the steady, slow growth process because that’s how you get wealthy in real estate.
Tom
0:18:48 – You’re exactly right. Your real estate is the best way to get wealthy.
Brett
0:18:50 – Well, wealth in real estate is not cash flow. Donald Trump’s living proof of that. Donald Trump doesn’t make $2 billion a year, but he has $500 billion worth of real estate assets, which he can do what with? He can leverage for other projects, he can borrow against.
Tom
0:19:06 – And he can depreciate, which is huge.
Brett
0:19:09 – So, you know.
Nick
0:19:10 – How long have you been doing this, Tom?
Tom
0:19:11 – That’s what I was going to say. I’ve been doing this for 20 years. That’s why I can leverage against my property. So I have a lot of paid for properties at this point because I’ve reinvested a lot in what I’ve done. So when you get to that point, then it’s a little easier to do. But starting out, I did do hard money loans and bank loans and borrowed from relatives, wherever I could find money.
Nick
0:19:34 – You start with it and now you’re at the point where you can borrow against what you built to go do more deals.
Tom
0:19:38 – Yeah, it’s amazing how people want to give you money at this point. They’re blinded up.
Brett
0:19:43 – The bank wants to give you money when you don’t really need it. But when you need it, they’re like, eh, I don’t need it.
Tom
0:19:47 – Twenty years ago, they’re like, eh, not going to touch you.
Brett
0:19:51 – Well, we had Daniel and his brother Shane in here from Utah on the air, and they had the same story. Shane was telling us about how he used to bar money from his dad, and they lived in the mom’s basement when they got their first house to flip. Well, now they’ve got 50, 60 homes, and Daniel doesn’t work for a living anymore, he just manages his properties. So long-term growth, slow growth is a smart way to go. If a kid today at 25 has 20 grand squirreled away, if he’d take that 20 grand, pick up a couple of small houses and slowly build his portfolio, by the time he’s 45 years old, he’s retired. That’s right. He’ll have plenty of revenue, income, asset wealth that he could literally just stop working and just manage his properties. But some reason these people are convinced they’re going to get out the seminar, another four-letter word, and all of a sudden next year they’re going to own 30 homes and quit their day job and be these independently wealthy individuals. And it just doesn’t work like that, unfortunately.
Tom
0:20:50 – That is so true. Keep preaching because you’re right on.
Brett
0:20:52 – I preach it every time. And I try to avoid the word seminar and then they always bring it up.
Jeff
0:20:57 – So you wouldn’t recommend I take the cash flow from my four rentals and buy a big yacht with it?
Brett
0:21:04 – No. No.
Jeff
0:21:06 – Well, you’re not fine.
Brett
0:21:09 – The successful investors I know, like you, Daniel, Shane, these guys that I’ve worked with for the last five to seven years, they all have the same philosophy. Take your time, grow it slowly, reinvest your money, don’t live off the money, and if you let it, just let it build up in an account until you have that oh shit moment and you got the cash available to work your way through that. But somehow the young, and I was probably the same way when I was 25, man. Just thinking, if I had $10,000 in my pocket, I’d have $9,999 gone by tomorrow.
Tom
0:21:43 – Well, that’s the thing. When the management company puts that deposit in your account, they don’t tell you what to do with it. You get $4,000 or $5,000 in there, you don’t have to pay your bills. You can buy a car.
Brett
0:21:53 – Sure, sure. But eventually, eventually you’re gonna end up with a good tenant that is not a scratch on the house and you have to give them that money back.
Jeff
0:21:59 – Also, look, I also like how your guy Daniel took it one step farther. He would buy four properties. He’s built his reserves up. He would buy four properties. He would take the cash flow from those four properties and he would buy the mortgage down on the fifth one.
Brett
0:22:15 – Dave Ransby’s scenario. Yeah, that’s what I do.
Tom
0:22:17 – I just take and continuously pay down. All the money I make on my rentals just keeps going, funding through. I don’t take anything out and that’s how I’ve got where I am. I think we’re a total of, between my partner and I, 80 properties.
Jeff
0:22:31 – Glenn Green said it best. He says, Jeff, it’s not rocket science. You buy the house, you rehab it, you put a tenant in it, you let that tenant pay the mortgage, the taxes, the insurance, the maintenance, you keep all that money in reserve, buy that principal down, and you’re benefiting. You’re gaining the long-term equitable income, not the tenant.
Brett
0:22:53 – If you borrow money from a bank and all you got invested in the house was $20,000 and the tenant’s paying all your expenses, that’s no different than somebody giving you a block of stock on the stock market for $10 and you never have to put another dime in it, but it’s going to grow substantially over the next 20 years. It’s not a hard concept to get.
Tom
0:23:05 – That’s exactly right. Don’t discount depreciation. It’s huge. Everybody makes fun of Donald Trump for not paying much tax that’s why depreciation.
Brett
0:23:15 – Because he’s got a half of you know five hundred billion dollars worth of real estate.
Nick
0:23:23 – You’re getting hang on to a lot more of that money that you’re making because of the legal tax you know benefits.
Tom
0:23:31 – I paid no taxes last year Nick. Zero. Guess how much I paid in, zero, because of depreciation. Zero.
Nick
0:23:40 – I mean that’s that’s the American dream.
Brett
0:23:46 – So there’s your plan, is you build up a huge portfolio and depreciate the crap out of everything and then live like a king and not have to worry about it.
Tom
0:23:48 – That’s right.
Brett
0:23:49 – Well, I’m not going to tell you what the IRS hit me for when I filed my taxes. Don’t even get me started on that.
Nick
0:23:53 – You need to start buying some of your listing, Brett.
Brett
0:23:54 – I would rather talk about seminars.
Jeff
0:23:56 – I need you to send me your accountant’s contact information.
Tom
0:23:59 – He’s really good.
Jeff
0:24:00 – Well, no, I mean, but kind of to his point, I’ve got a good friend of mine that makes a really good living working for the railroad and he’s got eight or nine properties of his own now and he said, I’ve paid $0 in federal income tax for the last three years because of my rental properties.
Tom
0:24:13 – Depreciation is the best kept secret of rentals. Honestly, it really is. You need an accountant that is really good at it, that has experience.
Nick
0:24:21 – Probably somebody that has their own real estate.
Tom
0:24:24 – Right. My, Jimmy Luke does that. He’s really phenomenal with investment real estate. So that makes a big difference.
Brett
0:24:31 – So buy, rehab, rent, flip, depreciate. No, no, no, buy, rehab, rent, depreciate, then flip.
Tom
0:24:40 – And then you appreciate too. So in five to seven years, you want to, you 1031 exchange and you got the appreciation, you’ve been getting rental income, boom, buy another one.
Brett
0:24:50 – Yeah, I don’t understand how people could fail at this business other than just getting greedy.
Tom
0:24:55 – Over-extended.
Brett
0:24:56 – Or just deciding that they want to be bigger than they really can be.
Nick
0:24:59 – Tom, it seems like you’ve kind of found your niche with, you know, the residential. Have you ever thought about going into multifamily or rolling into something bigger?
Tom
0:25:06 – Well, that’s, Nick, you hit the nail on the head. Most of what we keep now is multifamily. Like we just bought a sixplex on Peabody. I mean, we’re buying commercial. We’ve got a building in Bartlett We’re buying we love flex space, you know with office spacing warehouse as well best commercial property You can get we’ve been buying a lot of that. So Doing multifamily and commercials where we’re spending our money now, that’s more most of our hold We very rarely do single-family more. We just give them all to Brett.
Nick
0:25:37 – So using those to fund your multifamily and commercial?
Brett
0:25:53 – Correct, and that is really nice. Triple net leases are really amazing. No expenses. They pay your taxes, they pay your insurance, they pay the maintenance. You just collect money. It’s about as good as it gets.
Brett
0:25:54 – About as good as it gets. Alright, well, if anybody’s got any questions, they can reach out to us at 901-692-7401 or go to our website, mymemphisinvestmentproperties.com.
Tom
0:26:04 – Thank you for having me. Appreciate it, guys.
Brett
0:26:07 – Yeah, man. Thank you, Tom.