All Forum Posts by: Jordan Ray
Jordan Ray has started 31 posts and replied 461 times.
Post: New investor looking to start out of state
#5 BRRRR - Buy, Rehab, Rent, Refinance, Repeat ContributorPosted - Real Estate Agent
- Memphis, TN
- Posts 488
- Votes 253
Quote from @Alex Evans:
I would recommend Memphis!
Memphis is a great market for many reasons, but three main things that Memphis has going for it are..
- Memphis has relatively affordable housing, and you may find properties within your budget.
- The city has a diverse economy, with sectors such as healthcare, transportation, and logistics.
- Memphis has a strong rental market, making it attractive for investors seeking cash flow.
With affordable prices and over 50% of the city being renters there is always opportunity in Memphis
If I could <3 heart react any biggerpockets forum post, this would be the one!
Post: Navigating the Memphis Real Estate Market
#5 BRRRR - Buy, Rehab, Rent, Refinance, Repeat ContributorPosted - Real Estate Agent
- Memphis, TN
- Posts 488
- Votes 253
Quote from @Kenneth Williams:
I am Kenneth, a realtor stationed here at the heart of Memphis, TN. Did you guys out there realize about how untamed stuffs are happening in our market? Our neighborhoods are turning into goldmines for investors!
Quick Insights:
Hot Areas: Some Memphis spots are heating up for ROI – it's not just BBQ that's hot around here!
Investor's Edge: Knowing when and where to invest in Memphis is key. It's a tricky game but oh so rewarding.
Let's Chat:
Got your eye on Memphis? Let's swap notes. I've got the inside scoop and I'm all ears for your take.
Memphis newbie or a seasoned pro? Either way, I'd love to hear your thoughts and experiences.
So, what's everyone's take on the future of Memphis real estate? Are there any hidden gems or trends you think are about to take off?
Its funny you say that! I have been coming across hidden deals on the MLS for my investors! They are so sweet, I've made a few offers recently, trying to get back into buying more! Been closing some deals for some of my clients in 38109 and 38128 (Of all places) Lets connect!
Post: New investor looking to start out of state
#5 BRRRR - Buy, Rehab, Rent, Refinance, Repeat ContributorPosted - Real Estate Agent
- Memphis, TN
- Posts 488
- Votes 253
Quote from @Lane Kawaoka:
When I was doing turnkeys in 2012-2015 I was in Birmingham, Atlanta, Indianapolis.
Other popular markets: Gary (IN), St Louis, Huntsville, Phoenix/Tempe/Mesa, Kansas City, Memphis, Little Rock, Indianapolis, Harrisburg (PA), Greenville, Jacksonville, Tampa, Houston, San Antonio, Little Rock, Milwaukee, Cincinnati, Dayton, Cleveland, Ohio, or other secondary or tertiary markets.
Hey Lane! Let me know if you need any help in Memphis TN and/or North Mississippi if you look into that market.
Post: Having Trouble with the BRRRR Method and Spreadsheet
#5 BRRRR - Buy, Rehab, Rent, Refinance, Repeat ContributorPosted - Real Estate Agent
- Memphis, TN
- Posts 488
- Votes 253
Quote from @Phil Petite:
Quote from @Jordan Ray:
Quote from @Phil Petite:
Quote from @Jordan Ray:
Quote from @Phil Petite:
Quote from @Jordan Ray:
Quote from @Phil Petite:
Hello Everyone!
I have two rentals in Memphis. Both are 3BRs, and they both have Section 8 tenants in place. One home is being rented for $1100/month and the other is getting $1250/month. Both homes were purchased in cash, so I do not have any debt on either property.
I'd love to do a cash-out refi on either home in order to buy another rental, but I am not sure if I'm missing something with the BRRRR method and would appreciate some guidance.
Current Rentals' ARV: $125k for both (slightly conservative # here)
Purchase Price for 3rd/new rental: $100K
Rehab Needed: $2.5k (tenant currently in place, just needs punch list items taken care of)
Gross Rental Income: $1500/month
I guess what I'm having difficulty with is how much I'll be able to receive back from the re-fi that I can use towards the purchase of this 3rd property. I calculate that 75% of the ARV on a home worth $125k is around $93k, but this is where I get a bit lost in the process.
Any advice/guidance would be amazing!! Thank you in advance!!!
Here is what I would do. First do cash-out refinances on both properties. Make sure that before you do that, each property will cash-flow. Assuming they still cashflow and you proceed to do a cash out refi. Then take that money and use it on a 100% purchase and rehab on a BRRRR property where all your numbers make sense. (ARV x 70% - rehab = contract price/offer) I just had a buyer client lock up a BRRRR deal using hard money loan with Avalon Capital in Memphis. The ARV on this deal and with purchase and rehab. His ARV was $170K and he closed with only 7K. Just imagine how many deals you can buy with all that equity you have. If you need any help with this strategy, reach out. I help my clients do successful BRRRR deals all the time. I also buy myself. Goodluck!
Also, This refinance strategy on those properties is a 10 year interest only DSCR with a 30 year principal afterwards keeping his payment low for a few years so he can refi at a better rate and with more equity and keep more cashflow. He will not benefit from early equity by paying principal in his payment but will benefit from the cashflow. He also will refi again to a better DSCR loan when the rates are better. Solid strategy.
Aggressive strategy, Jordan! I like it!!! :)
I think I'd just pull the money out from only one of the two rentals that I already have, which are both cash-flowing (tenants are in place for both). I'm going to take the weekend to digest all this wonderful info from you and the other posters here, and I'll post again on Monday. Have a great weekend!
Good stuff man! Glad I can help! Goodluck to you!
Jordan, here is question for you (or for anyone posting in this thread!):
My main goal is to create more cash flow, so if you were in my shoes, would you try for the 3rd deal using a cash out re-fi on either of my two current rentals, if that that 3rd deal's numbers look like this?
3rd property - All-in cost: $105K, ARV: $125K, rental amount: $1500/month (tenant already in place). I would be able to pull about $93k out of one of my current rentals by doing a cash out re-fi, and then I'd use that towards the purchase of this 3rd rental that would gross $1500/month.
I guess my main question is: is this a good deal if I buy it at $105K if it rents for $1500/month? I think the numbers are solid if I can get that cash out re-fi for one of my two current properties, but I'd like to hear yours and others' thoughts.
I would love to chat about your strategy. Give me a call anytime!
Thanks so much, Jordan! I'll give you a call tomorrow!
Looking forward to it! If I don't answer please send me a text and I will get back to you ASAP.
Post: Having Trouble with the BRRRR Method and Spreadsheet
#5 BRRRR - Buy, Rehab, Rent, Refinance, Repeat ContributorPosted - Real Estate Agent
- Memphis, TN
- Posts 488
- Votes 253
Quote from @Phil Petite:
Quote from @Jordan Ray:
Quote from @Phil Petite:
Quote from @Jordan Ray:
Quote from @Phil Petite:
Hello Everyone!
I have two rentals in Memphis. Both are 3BRs, and they both have Section 8 tenants in place. One home is being rented for $1100/month and the other is getting $1250/month. Both homes were purchased in cash, so I do not have any debt on either property.
I'd love to do a cash-out refi on either home in order to buy another rental, but I am not sure if I'm missing something with the BRRRR method and would appreciate some guidance.
Current Rentals' ARV: $125k for both (slightly conservative # here)
Purchase Price for 3rd/new rental: $100K
Rehab Needed: $2.5k (tenant currently in place, just needs punch list items taken care of)
Gross Rental Income: $1500/month
I guess what I'm having difficulty with is how much I'll be able to receive back from the re-fi that I can use towards the purchase of this 3rd property. I calculate that 75% of the ARV on a home worth $125k is around $93k, but this is where I get a bit lost in the process.
Any advice/guidance would be amazing!! Thank you in advance!!!
Here is what I would do. First do cash-out refinances on both properties. Make sure that before you do that, each property will cash-flow. Assuming they still cashflow and you proceed to do a cash out refi. Then take that money and use it on a 100% purchase and rehab on a BRRRR property where all your numbers make sense. (ARV x 70% - rehab = contract price/offer) I just had a buyer client lock up a BRRRR deal using hard money loan with Avalon Capital in Memphis. The ARV on this deal and with purchase and rehab. His ARV was $170K and he closed with only 7K. Just imagine how many deals you can buy with all that equity you have. If you need any help with this strategy, reach out. I help my clients do successful BRRRR deals all the time. I also buy myself. Goodluck!
Also, This refinance strategy on those properties is a 10 year interest only DSCR with a 30 year principal afterwards keeping his payment low for a few years so he can refi at a better rate and with more equity and keep more cashflow. He will not benefit from early equity by paying principal in his payment but will benefit from the cashflow. He also will refi again to a better DSCR loan when the rates are better. Solid strategy.
Aggressive strategy, Jordan! I like it!!! :)
I think I'd just pull the money out from only one of the two rentals that I already have, which are both cash-flowing (tenants are in place for both). I'm going to take the weekend to digest all this wonderful info from you and the other posters here, and I'll post again on Monday. Have a great weekend!
Good stuff man! Glad I can help! Goodluck to you!
Jordan, here is question for you (or for anyone posting in this thread!):
My main goal is to create more cash flow, so if you were in my shoes, would you try for the 3rd deal using a cash out re-fi on either of my two current rentals, if that that 3rd deal's numbers look like this?
3rd property - All-in cost: $105K, ARV: $125K, rental amount: $1500/month (tenant already in place). I would be able to pull about $93k out of one of my current rentals by doing a cash out re-fi, and then I'd use that towards the purchase of this 3rd rental that would gross $1500/month.
I guess my main question is: is this a good deal if I buy it at $105K if it rents for $1500/month? I think the numbers are solid if I can get that cash out re-fi for one of my two current properties, but I'd like to hear yours and others' thoughts.
I would love to chat about your strategy. Give me a call anytime!
Post: Having Trouble with the BRRRR Method and Spreadsheet
#5 BRRRR - Buy, Rehab, Rent, Refinance, Repeat ContributorPosted - Real Estate Agent
- Memphis, TN
- Posts 488
- Votes 253
Quote from @Phil Petite:
Quote from @Jordan Ray:
Quote from @Phil Petite:
Hello Everyone!
I have two rentals in Memphis. Both are 3BRs, and they both have Section 8 tenants in place. One home is being rented for $1100/month and the other is getting $1250/month. Both homes were purchased in cash, so I do not have any debt on either property.
I'd love to do a cash-out refi on either home in order to buy another rental, but I am not sure if I'm missing something with the BRRRR method and would appreciate some guidance.
Current Rentals' ARV: $125k for both (slightly conservative # here)
Purchase Price for 3rd/new rental: $100K
Rehab Needed: $2.5k (tenant currently in place, just needs punch list items taken care of)
Gross Rental Income: $1500/month
I guess what I'm having difficulty with is how much I'll be able to receive back from the re-fi that I can use towards the purchase of this 3rd property. I calculate that 75% of the ARV on a home worth $125k is around $93k, but this is where I get a bit lost in the process.
Any advice/guidance would be amazing!! Thank you in advance!!!
Here is what I would do. First do cash-out refinances on both properties. Make sure that before you do that, each property will cash-flow. Assuming they still cashflow and you proceed to do a cash out refi. Then take that money and use it on a 100% purchase and rehab on a BRRRR property where all your numbers make sense. (ARV x 70% - rehab = contract price/offer) I just had a buyer client lock up a BRRRR deal using hard money loan with Avalon Capital in Memphis. The ARV on this deal and with purchase and rehab. His ARV was $170K and he closed with only 7K. Just imagine how many deals you can buy with all that equity you have. If you need any help with this strategy, reach out. I help my clients do successful BRRRR deals all the time. I also buy myself. Goodluck!
Also, This refinance strategy on those properties is a 10 year interest only DSCR with a 30 year principal afterwards keeping his payment low for a few years so he can refi at a better rate and with more equity and keep more cashflow. He will not benefit from early equity by paying principal in his payment but will benefit from the cashflow. He also will refi again to a better DSCR loan when the rates are better. Solid strategy.
Aggressive strategy, Jordan! I like it!!! :)
I think I'd just pull the money out from only one of the two rentals that I already have, which are both cash-flowing (tenants are in place for both). I'm going to take the weekend to digest all this wonderful info from you and the other posters here, and I'll post again on Monday. Have a great weekend!
Good stuff man! Glad I can help! Goodluck to you!
Post: Having Trouble with the BRRRR Method and Spreadsheet
#5 BRRRR - Buy, Rehab, Rent, Refinance, Repeat ContributorPosted - Real Estate Agent
- Memphis, TN
- Posts 488
- Votes 253
Quote from @Phil Petite:
Hello Everyone!
I have two rentals in Memphis. Both are 3BRs, and they both have Section 8 tenants in place. One home is being rented for $1100/month and the other is getting $1250/month. Both homes were purchased in cash, so I do not have any debt on either property.
I'd love to do a cash-out refi on either home in order to buy another rental, but I am not sure if I'm missing something with the BRRRR method and would appreciate some guidance.
Current Rentals' ARV: $125k for both (slightly conservative # here)
Purchase Price for 3rd/new rental: $100K
Rehab Needed: $2.5k (tenant currently in place, just needs punch list items taken care of)
Gross Rental Income: $1500/month
I guess what I'm having difficulty with is how much I'll be able to receive back from the re-fi that I can use towards the purchase of this 3rd property. I calculate that 75% of the ARV on a home worth $125k is around $93k, but this is where I get a bit lost in the process.
Any advice/guidance would be amazing!! Thank you in advance!!!
Here is what I would do. First do cash-out refinances on both properties. Make sure that before you do that, each property will cash-flow. Assuming they still cashflow and you proceed to do a cash out refi. Then take that money and use it on a 100% purchase and rehab on a BRRRR property where all your numbers make sense. (ARV x 70% - rehab = contract price/offer) I just had a buyer client lock up a BRRRR deal using hard money loan with Avalon Capital in Memphis. The ARV on this deal and with purchase and rehab. His ARV was $170K and he closed with only 7K. Just imagine how many deals you can buy with all that equity you have. If you need any help with this strategy, reach out. I help my clients do successful BRRRR deals all the time. I also buy myself. Goodluck!
Also, This refinance strategy on those properties is a 10 year interest only DSCR with a 30 year principal afterwards keeping his payment low for a few years so he can refi at a better rate and with more equity and keep more cashflow. He will not benefit from early equity by paying principal in his payment but will benefit from the cashflow. He also will refi again to a better DSCR loan when the rates are better. Solid strategy.
Post: Looking for Handyman in Memphis
#5 BRRRR - Buy, Rehab, Rent, Refinance, Repeat ContributorPosted - Real Estate Agent
- Memphis, TN
- Posts 488
- Votes 253
Quote from @Ryan Swain:
Quote from @Jordan Ray:
Quote from @Ryan Swain:
I have a rental in Memphis, looking to see what someone would charge. I have a quote from my property management's preferred company, however, I do not appreciate their work. Looking for someone who has done good business with people in the past. Thank you.
What do you need done? I use 2 different approaches depending on the situation.
Option 1: I will use a https://www.neighborly.com/ company. Usually free estimates with plenty of pictures and then I will authorize the work.
Option 1: Bluff City Preservation | 901-632-5399
Hope that helps! Goodluck! Let me know if I can help with anything else!
Jordan,
Great information, Thank you. I will try that out. I have several different things that need to be accomplished very general maintenance, some paint, air filter changes, and light bulb changes. I appreciate your help.
Ryan
Anytime!
Post: Looking for Handyman in Memphis
#5 BRRRR - Buy, Rehab, Rent, Refinance, Repeat ContributorPosted - Real Estate Agent
- Memphis, TN
- Posts 488
- Votes 253
Quote from @Ryan Swain:
I have a rental in Memphis, looking to see what someone would charge. I have a quote from my property management's preferred company, however, I do not appreciate their work. Looking for someone who has done good business with people in the past. Thank you.
What do you need done? I use 2 different approaches depending on the situation.
Option 1: I will use a https://www.neighborly.com/ company. Usually free estimates with plenty of pictures and then I will authorize the work.
Option 1: Bluff City Preservation | 901-632-5399
Hope that helps! Goodluck! Let me know if I can help with anything else!
Post: The #1 real estate agent in Memphis in 2023
#5 BRRRR - Buy, Rehab, Rent, Refinance, Repeat ContributorPosted - Real Estate Agent
- Memphis, TN
- Posts 488
- Votes 253
Quote from @Dean Harris:
Thank you, Douglas! I'm really looking forward to what 2024 brings our clients here in Memphis!
Great work, Dean! I am looking forward to making more of a name for myself in the market. You guys are inspiring! Good stuff!