New real estate investor

[Aaron Kyle Kinslow]

Hello,

My name is Kyle Kinslow and I am a real estate investor based in Nashville, TN. My wife and I both hold down full time jobs but find real estate investing both enjoyable and rewarding. My wife is currently obtaining her real estate license. We are looking to get started through acquisition of foreclosures/ condemned properties followed by total demo and rebuild. Particularly, we envision building duplex properties that are shotgun style floor plans. I’m interested to know how you all financed your first project, the dos and do nots, and generally any advice for getting started. Did you use your own money or obtain loans? We’ve done as much internet research as possible and have self educated as much as we can. We would love to hear from some experienced investors and network.

[Jack Montague]

Hey Kyle,

Congrats on getting into Real Estate. It is most definitely enjoyable and rewarding. I got back into RE full time in January of this year in Nashville after leaving Corporate America in Dallas, TX. Because I was self-employed, I partnered with 2 people on my first flip in January with a cash deal. I now own 2 lots, a long-term rental and am currently under contract with another home in the 12th south area that has another lot that can be subdivided. My full-time partner and I plan on selling the attached lot after subdividing, but we have used cash and HELOCs for our purchases strictly because we are self-employed and getting mortgages are obviously very difficult. 

It looks like you have a good idea on what you want to do. Rebuilds are never a bad idea, but in Nashville, they are hard to come by because every builder in town wants them. They need lots to stay busy, so if it hits the market you are probably out of luck to tear down and rebuild because it is too late. They know their numbers left and right, and know exactly what it costs to tear-down, sub-divide (HPR), and build. There is money to be had if you can find these properties, thats why you are seeing so many 'shotgun' style homes all over town. I've got two HPR lots, one I am selling and the other I am building a rental, so I know this market as well as the zoning of Nashville really well.

I'd be happy to chat anytime if you are looking for more specific details. Reach out anytime.