All Forum Posts by: Ben Roberts

I'm considering a property in Memphis that was recently renovated, inside and out.  It's a 2/1, about 900 sqft, and $600 would be market rent, maybe a bit more given the condition of the property. With a sale price of $30k, it hits the 2% rule and should cash flow just over $150/mo.  Even thought the numbers work, it feels a little thin.  Maybe this makes more sense for a cash investor?  Any thoughts?

@Caleb Heimsoth $775 is probably a little above market rent. I think market rent should be a bit closer to $725-$750. If you're at all familiar with the area, it's on Carlyle in 38127. The fact that what i'm looking at is 3/1 ARM and only 20 years doesn't sit too well. Getting financing in this price range is proving to be a greater challenge than I had hoped.

I'm considering a buy and hold or potential wholesale deal in Memphis, TN and would greatly appreciate a second opinion.

ARV: $55,000 Purchase price: $43,500

Rent: $775 / Occupied

Mgmt: $77.5 Repairs & CapEx: $117 Vacancy: $64

I can get financing with %15 down, 20 year loan, 3/1 ARM, est. %5.6, my PITI is around $406.

Rent $775 - Expenses $258 - Financing $406 = $110 in cash flow

It feels a little thin.  My total cash to purchase the property will be $6,500 + closing.

With a contract for $43,500, I don't think there's much room for a wholesale opportunity & a 30 year loan would increase my cashflow by about $40/mo but I can't seem to find one right now.

The property is a 3/2, 1,000 sq. ft. the lease renews in August, month to month, at $825. It was originally purchased as a turnkey investment about 5 years ago. Hot water tank is 4 yrs old. Ext.A/C unit is about 2 years old. The rent roll and tenant history look good. 

Thank you in advance for any thoughts.

I'm making an offer on a property today, expecting the purchase price to be between $35k and $40k but I've never financed a property in this price range.  The home is in Memphis, TN, it's rented for $775/mo, and under management.  The owner is unwilling to finance the property for me.   Can I go to a regular bank and get a conventional mortgage for less than $50k?  Does anyone know of any lenders in the Memphis area that can help me with this?

Thanks

Ben 

@Angel-Ty L. Thank you SOOO much for the detailed reply.  After the original post, I actually took down the Google ads thinking that after I did some research, I'd try again.  I've been focusing on word of mouth and direct mail, but now you've piqued my interest again.  Armed with this new knowledge, I may push this effort again.

Thanks!

@Kameron Sneed There is a lot you need to know in order to avoid wasting time and money.  Have you been reading the forums? 

I've never worked with Homevestor but I can tell you if it's a deal that everyone on your buyers list has turned down, it's not as good as you think it is.  Are you able to renegotiate with the seller?

@Michael Hayes I'll let you know next time I get something under contract

I'm following up on a lead in Memphis, TN.  The home is in Chickasaw Gardens, a really nice part of town, and the home owner is elderly.  She is looking to buy a property in Mississippi to move in to when she sells the current home.  She is ready to sell but would like to remain in the home after closing if she hasn't found something else.  My plan was to wholesale the property, which means that whoever I assign the contract to, would have to be willing to let her stay in the home for a time, or rent it for a time, until she can move.  Can I actually do that?  How would that work?

I thought that I would just set a close date out for 3 months to give her some time, but she'd like to get the sale done as she also owes back taxes and is tired of hearing from the County Trustee's office.  Does anyone have any thoughts?