All Forum Posts by: Jason Rhodewalt

I'm also very interested in this news. What areas of the Memphis market (and surrounding areas) are most likely to be positively affected? Where would you invest to capitalize on this?

Wow that’s a screaming deal then - nice job. I haven’t looked into SW Memphis at all - I typically stay more south and east. Nice job!

Awesome - thanks for sharing. I'd be curious to know how much rehab you had to put in? Also what part of Memphis?

@Jonathan Pechmajou how did it go with Legal Zoom? Any regrets?

@Mina Skoutelakis correct - you will not make 1% rule with TK. There are two downsides to TK

1) You're paying a premium price for a premium product so you have basically no equity when you start (BRRRR investors hate this idea)

2) You're paying a premium price so you Cash on Cash return will be lower then if you buy the same house yourself and do some repairs and then rent it out

To me for first time OOS investors I think its a great way to start. You won't maximize your returns but it's basically zero work and it gets you in the game

Hi Mina - I'm also from CA and I have bought a property from Memphis Investment Properties (and have multiple others also managed by Reedy who is their PM company). The process of buying from them was great - very easy. We had a handful of things that showed up on the home inspection and to my surprise they fixed them all! (most home inspections include silly little things don't need to be addressed). I have had some issues with Reedy but they seem to be getting better

Thanks for the responses everyone. Talking to the tenant today, who happens to be in the lending business, she suggested that we stick to the original price and hold a second note for 20% and move to a conventional loan. I’m not really interested in loaning more money - I’m not really in that business. I’m also unsure of the tax implications as we intend to do a 1031 exchange with the proceeds.

I’m leaning more towards the uncollateralized loan. It’s not a large amount so it would kill us if they did stop paying and might just be cleaner. Still open to other ideas as well. Thanks for everyone’s thoughts

Hi we are looking to sell to our current tenants and they are getting an FHA loan. The appraisal came in $30k under the agreed upon price. The price we agreed to was what OpenDoor had already offered us so we could always go with them however we want to help out the tenant. Any recommendations on how to overcome the $30k? They don't have that much in the bank. I was thinking maybe we act as the bank and provide a second note? Or maybe do a formal private loan uncollateralized? Looking for other recommendations. Thanks in advance

@Kevin Kim I don’t know the exact rates. On Zillow they have a link to the county website and then on that website there’s a god calculator

One thing to watch out for is taxes - the Zillow listed taxes will be low because they include a homestead exemption usually. As a rental you get it much harder in MS - make sure to visit the assessor ls website to really understand where you will land (not where it is today)