They effectively cover the mortgage.

I want to be investing in a neighborhood near Memphis that would take on the same effect. 

Effectively your ROI is less than 4.5% because it'll cost you money to access your principal.Now with the IO scenario - can you surpass a 4.5% return if you redirected those principal payments into a new purchase?

We can't of course just turn off the electricity, but not sure what would be effective way to achieve this.

On a side note, I for one think the effect HGTV has had on the housing market is interesting to watch.

Actually posted about this a couple of months ago after the Trump Effect brought MF interest rates up .75%. 

To that effect, a lot of brokers like to push their clients to buy as quickly as possible because, well, that's what makes us the most money.

It may be useful to you personally as an investor, to see that the property meets your specific investment criteria or not, and perhaps to the bank to credit your DTI with 75% of the rent roll, but should not effect ARV.

Bid Amount $204,233 Legal description: Foreclosure Record Recording Date: 08/16/2016 Document #: 2016-164068 BK-PG - Document Type: Notice Of Default Case Number: 045889-CA Beneficiary Name: Trustor Names Trustee Name: xxxx CORP Mailing Address: 045889-CA Loan Doc #: 2003-544298 Loan Date: 11/04/2003 Loan Amount $256,600 Contact Mortgage Assignment Recording Date: 05/20/2016 Document #: 2016-095852 BK-PG - Loan Amount $256,600 Document Type: Assign ent Of Original Lender Origination Doc #: Borrowers Name Origination Recording Date: 11/04/2003 Effective Date 05/19/2016 Assignor Name: Assignee Name Mortgage Record Recording Date: 01/05/2005 Document #: 2005-004922BK-PG - Loan Amount $150,000 Loan Type: Credit Line TD Due Date: 12/23/2024 Type of Financing: Interest Rate: Lender Name: CITY BANK Lender Type: Bank Borrowers Name Vesting: Joint Tenants Mortgage Record Recording Date: 11/04/2003 Document #: Loan Amount $256,600 Loan Type: Conventional TD Due Date: 11/01/2033 Type of Financing: AR Interest Rate: 5.87% Lender Name Lender Type: Lending Institution Borrowers Name Vesting: Joint Tenants Fixed Step: Rate Starts As FIXED.

Make sure you use a contract that has wording to that effect.