Seeking Mortgage For Cash-Flowing Rental

Memphis, Tennessee
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Seeking Mortgage For Cash-Flowing Rental

Sam Wilson
Investor · Memphis, TN · Member since 2016 · 279 posts · 257 votes

We have a rental property in Memphis that appraises for 53K and we net about 7500/year for the last 2 years.  Any recommendations for good places to ask about a mortgage on it?  It is currently our only rental.

Thanks!

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Heather Horton
Realtor · Germantown, TN · Member since 2016 · 15 posts · 8 votes
9y

Jo Garner with Evolve Bank is very helpful.  She works with a lot of investors.  Maybe start with her.

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  • Derrick Craig
    Memphis, TN · Member since 2013 · 969 posts · 524 votes
    9y

    @Sam Wilson

    Try calling

    https://3286373485.mortgage-application.net/Default.aspx

    1Reply
  • Heather Horton
    Realtor · Germantown, TN · Member since 2016 · 15 posts · 8 votes
    9y

    Jo Garner with Evolve Bank is very helpful.  She works with a lot of investors.  Maybe start with her.

    3Reply
  • Douglas SkipworthBusiness Member
    Rental Property Investor · Memphis, TN · Member since 2014 · 1k+ posts · 1k+ votes
    9y

    Hey, @Sam Wilson.

    Have I introduced you to John Phillips at Brighton Bank?  I know he'd love to talk with you.

    Shoot, me an email if you want his info.

    Investor's Guide to Memphis Real Estate
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    2Reply
  • Sam Wilson
    OP
    Investor · Memphis, TN · Member since 2016 · 279 posts · 257 votes
    9y

    Douglas,

    I've spoken with someone at brighton before. If my memory serves me correctly, the issue is the value of the home. i.e. I haven't found anyone that wants to lend on a 50k home. But my memory could be wrong! We'll call them and see what they say for sure.

    Thanks,

    Sam

    0Reply
  • Bill Pate
    Real Estate Investor · North Ridgeville, OH · Member since 2016 · 97 posts · 81 votes
    9y

    In my experience they will require you to have 6 months of all expenses on hand in cash to write the loan. In other words 6 months of mortgage, taxes, and insurance. I tried extensively to get a primary mortgage or a HELOC on a rental property I own free and clear. In the end it was better to just get a personal loan. I pay more in interest, but the obstacles to getting the loan were considerably less. The personal loan interest rate is only 7% and a heloc or mortgage would have been about 4%. This wasn't a big enough of a difference for me to not take the personal loan.

    1Reply
  • David Handel
    Madison, WI · Member since 2014 · 46 posts · 26 votes
    9y

    I used Jo Garner at Evolve.  Purchase on mine was $72k, and appraisal came back at $90k.  The only hiccups I had were based on my history, not the property.

    1Reply
  • James WachobBusiness Member
    Real Estate Broker · Memphis, TN · Member since 2015 · 1k+ posts · 887 votes
    9y

    @Sam Wilson are you looking for long-term money or do you need some money for a short term loan?

    0Reply
  • Sam Wilson
    OP
    Investor · Memphis, TN · Member since 2016 · 279 posts · 257 votes
    9y

    @James,

    I own the home outright, that is the real rub. I really don't want to own it free and clear for obvious reasons. So long-term financing is the ideal solution, or punt it. But it makes a nice little return...We'll go through the channels mentioned above and see where it gets us. If we can't get long term financing you'll see it listed soon! Thanks everyone for pitching in and giving great feedback. I (we) appreciate it very much.

    -Sam

    0Reply
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