All Forum Posts by: Bryan Malone

Midtown area has undergone major renovations over the last few years. Relatively close to medical district where local hospitals and UT Memphis is located. Also, check out area around the University of Memphis 

@Ali Boone I never considered a cash out refinance...thanks for sharing, I'll do some further digging into it.

@Jaysen Medhurst Good point...so with that said, how do people use it as a down payment? Seems like that would mean whatever property you purchased, the rent would need to cover the mortgage as well as the HELOC...unless you bought the propert free and clear using the HELOC.

Example:

HELOC: $20K

Purchase price: $100K

Conventional Loan amount: $80K

Heloc payment: $250

Conventional Loan payment: $650

Total monthly payment: $900

Rent needs to be at least: $900/mo.

How does the refi work, whereby the HELOC can be paid off?

Considering taking out a HELOC on primary residence to purchase 1st rental property. Lender is offering fixed rate on the HELOC as long as the account is open for 3 years. Would it be better to use the proceeds on a turnkey property or find a fixer upper and use the HELOC as a down payment and later refinance using the BRRRR method? I like the concept of turnkey because I don't have the time myself to put into fixing it up but would consider bringing on a partner that is willing manage that portion of the deal. Thoughts???

@Desteni Barnes areas to check out could be the ones just outside of Memphis. I was thinking West Memphis, AR, Olive Branch MS, or Millington, TN. I know Olive Branch is growing at a rapid pace, (one of the fastest in the country) and typically you get more for your money. But I'm sure an agent can tell you more. I'm curious to know what the market is like around the Port Charlotte area? Also, do you have a team you are working with or mentor?

@Randall Weatherall Thank you for the advice. I hear varying things on here about the Memphis market...and I've lived here all my life ! lol. But if I understand what you said about not having the first investment forever, it sounds as if fix and flip is the better strategy for this market as a oppose to buy and hold renting, yet I 've also heard that this is supposed to be a good to decent cashflow market. I guess it depending on the deals you come across and some analysis...Thoughts???

Also, how do I go about assembling a team? I mean there have been a few people here and there that I have spoken with but I've also read where traditional lenders and even some real estate agents are less inclined to work with new real estate investors, especially when looking at smaller less expensive properties starting out.

@Desteni Barnes areas to check out could be the ones just outside of Memphis. I was thinking West Memphis, AR, Olive Branch MS, or Millington, TN.  I know Olive Branch is growing at a rapid pace, (one of the fastest in the country) and typically you get more for your money. But I'm sure an agent can tell you more. I'm curious to know what the market is like around the Port Charlotte area?

@Desteni Barnes Sounds like a good strategy and I guess it depends on the ability to find the right deals and knowing the market. Typically, properties under 50K are located in less than desirable areas (at least in Memphis). Not always the case, but just have to be cognizant of location. High turnover due to crime in the area can be a killer to income. Also not ruling out using the BRRRR method to payback the HELOC since these aren't 30 year fixed loans

@Michael Ablan in what ways do you use leverage to fund your deals? Is this how you started out? How can a newbie like myself with limited savings or time to actively be involved bring something to the table where partnership is concerned?

@Michael Ablan in what ways do you use leverage to fund your deals? Is this how you started out? How can a newbie like myself with limited savings or time to actively be involved bring something to the table where partnership is concerned?