BP n00b from Chattanooga TN

[Tim Miller]

Hello BP.

I have been a member for a very short while but plan on getting engaged to the platform as a useful resource. I live just outside of Chattanooga TN in a rural area called McDonald (e i e i o).

I have no current rental properties, however, I like many others have great plans for my future (and the future of my wife and 5 month old son). Our home was purchased using the help of a contractor friend as a tornado damaged single family. We now stand two years later with approximately $45k in equity that could be realized quite quickly.

I have a degree in accounting and work in the private sector analyzing accounts and business activities on a daily basis. This has given me a large amount of business knowledge in a short period of time. I have managed payroll, payables, receivables and financial statement activities. Needless to say I am researching furiously the various ratios, cap rates, and terminology of this investment opportunity.

My long term investment strategy is simple, bread and butter single family homes in desirable neighborhoods purchased at 10% or greater beneath their values and rent them long term. My game plan consists of requiring 4 paid for properties with all profits going toward future investments. The only issue with this plan is it will take an estimated 17 years to complete the downpayments and full-payments on these 4 properties......my estimate....So unrealistically I want to get into more delicate options such as multi-family but do so cautiously....I am researching and waiting until I can cash flow my first down payment.

My question to whomever would like to respond: We plan to sell our single family home due to the fact that we would like to move closer into the city and we can either roll our equity into our next home by reducing the costs or roll this equity into possibly 2-3 down payments for single family homes and using a VA loan for our next home to avoid PMI (the devil itself).

Comments and questions welcomed =)

[Tim Miller]

@Ali Boone im pretty sure Becky's shoes in Cleveland still goes by the same name. My wife like to buy her shoes there.

@Bryan L. I am very opposed to taking a HELOC or any lines against my primary residence. Anything that could potentially, at any level, endanger my primary I am against 100% and wont consider. However, thank you for your comment and advice.

@Faith Chesney if we didnt have a child now I would consider doing just that. Now that we have a son and our two dogs I just dont want to chance inviting potential "scum tenants" into our personal living quarters.

@Kevin Polite it really is too soon to tell how much the market has been affected by the VW plant (as far as I can tell). I think we will have a better picture in 5 or 10 years. The real issue in Chattanooga is gaining traction. We gain one major economic boost and lose a major player (Krystal).

@Bethany T. we really like the Belvoir neighborhood association I think its maybe a few square blocks in Brainerd. Typically this would not be my ideal location however it truly is a diamond in the rough...part of town.