All Forum Posts by: Joe Gravelle

lots of good companies in all markets... check out Brie's website for reviews and listen to her pod cast with actual turn key buyers.... very specific to what you want to do .

Hello @Joe Gravelle

There are many turnkey companies in Memphis. I have looked into both Memphis Invest and Midsouth and like the work they both do on the rehab side and would be happy to own properties from either of them. At this point I have 4 properties through Midsouth due primarily to entry price point and an added bonus that they wait patiently for financing to complete (my credit is over 800, my DTI easily covers the cost of all of these mortgages without considering the rents… but still, financing takes more time then I anticipate). I prefer the properties at the higher end of the Midsouth scale and am choosy about the neighborhoods.

Both companies take a process approach to the business and make effort to refine their process.

Memphis Invest farms the work out to contractors that specialize in the field: electricians for electrical, HVAC for HVAC, plumbers for plumbing… etc.

Midsouth maintains licensed staff on the payroll who perform or oversee the work.

As property managers, Midsouth has been responsive. I have had a couple of tenants get behind and one of them get caught almost back up to current. The other one had some life events and was experiencing financial distress. Midsouth demonstrates care and concern for their/our tenants and works with them through rough patches avoiding turnover. The financially distressed tenant was able to move in with family and, if all goes well, pay down the arrears and expenses. The unit was quickly prepared and leased to a new tenant.

Midsouth can be patient because they work with the starting point of the rent and figure backwards to sales price to investors and buy places that will meet those criteria and still make them at least the minimum profit they are looking for. As an investor the ratios remain consistent and predictable. As such the inventory seems to have a high demand. Midsouth uses a mail list, like waiting in line so everyone who is interested (new investors or investors with multiples) has an unrushed opportunity to become an investor.

I do not think of Memphis as an appreciation market, perhaps that is changing with millennials moving in. I will keep my projection strictly on the cash flow until proven otherwise.

@Joe Gravelle A good lender should be able to help you work through the different scenarios to find the best option for you. If you are moving into the new property a lender should be able to count at least 50-60% of your rental income to improve your DTI. Some lenders will require a written lease, but others will just do an appraised rent, it may depend on your location. Credit unions are my favorite for these types of scenarios. You may be able to pull a small HELOC on your primary and at interest only it shouldn't affect your DTI too much. Those are my thoughts, but talking to a lender will get you the best answers. Find one who is also an investor ( I'm happy to make recommendations since you're in CO).