All Forum Posts by: Jeff Bethke

@Maria D. I notice no one mentioned a turnkey provider. You could likely have them line up multiple properties that cover the amount you need to exchange and do it rather quickly. The houses we buy in Memphis run about $130-$170k and rent for $1200-$1500.

@Andrew Akins Hi Andrew, I have 5 SFH in Memphis with REI nation, looking to diversify. How do you like Little Rock? Any tips?

@Tom Shallcross Here are some more numbers to clarify things. I owe $270k and the house received a BPO a couple years ago for $425k or so, and it's probably higher now. Our current mortgage payment is based on $328k/30-yr. So I figure if I can pull 65k out and essentially go back to a $340k-ish mortgage, we're about even. Does that seem right? HELOC looks about 6% right now, which would be $388/mo on a 30-yr term. I'm really curious if a mortgage lender would ever modify the loan without a bunch of closing costs? I'm with Wells Fargo now. The strategy is to go 50/50 with my existing business partner and pick up about 3-4 SFH within our existing business model of turnkeys. So, using cash flow to pay the HELOC doesn't work well as we want to keep that money in the business. I'm definitely leaning towards the Refi, but appreciate the sounding board. Just seems like locking in low-interest 30-yr debt vs variable HELOC makes the most sense.

@Tom Shallcross

I've been thinking about that, and reframing some mindset around personal residences and whether equity is wasted, as the return is 0%. So I don't mind the extended mortgage, especially if I don't really care about ever paying it off, more about building a real estate business that funds my expenses indefinitely. So, the higher rates and added monthly expense of a HELOC is not as attractive as getting that equity out at a lower and long term fixed rate. Thoughts?

I have roughly $100k in equity, and a 3.375% 30-year rate. Is there a good strategy to most efficiently pull about 75k out to buy some SFH? I'm wondering is banks ever modify mortgages without a bunch of added costs. Also, how do you feel about the opportunity cost of leaving equity in vs. probably increasing the rate and term to current rates for another 30-yr?

The storms in Memphis this week downed a huge tree into my rental house. Tenants were not injured and house looks to be badly damaged. Can anyone tell me what to expect with an insurance claim? I have a $5000 deductible and coverage of the full purchase price, ~$191k. Another $19k in vacancy coverage.

Is anyone having trouble filling vacancies in Memphis right now? I have a 3bd/2ba south of Germantown and west of Collierville. Brand new house, rent is set at $1495, market value is $192k. I'm having trouble getting it rented through my PM and curious if the market has shifted at all and there is an excess of inventory?

Allison Karrels Just trying to make sure the @ works from iPhone app.

Allison Karrels Allison, I'm curious about your experience with Memphis Invest. How did the appraisals come back compared to the asking price on these three deals? If they were lower, did you have any personal issue with paying the difference?

Matthew McQueary I have a consultation scheduled with ProVision is Tempe. I heard the founder on a podcast a really enjoyed his take. You can search for them and do a free consultation to see if they are a fit.