Hi Ashish,Zip code 38125 in Memphis is generally considered a good area, often described as an A+ neighborhood with newer developments and amenities.

I'm not a fan of a surprise bonus because it kind of sets a future expectation.

We totally get the premise behind the Brrr method but at the same time, if you can utilize the same cash principle to buy a bigger, better rental house that will appreciate well over time due to location, wouldn't it also make sense to consider using the cash house equity for this bigger location house to be refinanced later at a lower rate and take the equity out of the better location house then and use the equity later?  

It's great to have you here.Here are some recommendations for you:Find and connect with other BP members that are in your area: http://www.biggerpockets.com/m...Set up keyword alerts to be notified of the topics that interest you: http://www.biggerpockets.com/a...Read Beginner’s Guide: http://www.biggerpockets.com/r...Check out BP Money Podcast: https://www.biggerpockets.com/..

Making local connections to that area so you can get everything you need set up.

1.Subscribe to the BiggerPockets Money and Rookie Podcasts2.Attend the FREE WEBINARS3.Attend a Meetup in Your Area / virtual meet ups4.Purchase the Beginner Books: How to Invest in Real Estate, Set for Life, The House Hacking Strategy5.Peruse the forums!

They will evaluate the risk and return profile of the note, considering factors like interest rate, duration, and the creditworthiness of the payer (you as the property buyer). 

I'm considering Birmingham and Huntsville area for SFR (3 bed/2 bath)/Duplex.

Feel free to set up a call to see if he/she is a good fit.Best, Fulton

You're just trading one set of problems for another.Highly recommend inspecting current home of any S8 applicant (we do this for any applicant under 620 credit score).