Investor · Mahopac, NY · Member since 2015 · 55 posts · 13 votes
Hello BiggerPockets - i am very close to closing on my first flip in Knoxville. I just want to reach out to see if there was anyone out there i could bounce ideas off of?
Investor · Scottsdale AZ · Member since 2015 · 1k+ posts · 423 votes
7y
My favorite are SFRs. Very easy to find motivated sellers, pay cash, and purchase below current value. Since we do not want to do the reno, we instead mark them up a bit and resell in days to a flipper/investor. (In the Phoenix area, we make $25k-60k *and* our buyer/investor makes even MORE $ after they do the work.)
I've asked them why they don't do what I do and cut me out of the deal and they always say either "data is not my thing & I don't want to learn what you do" or "I really like our arrangment and want to do the creative/reno part".
We have built some great relationships and are expanding this to multiple cities...
Investor · Mahopac, NY · Member since 2015 · 55 posts · 13 votes
7y
@Matt Castle i'm sure there are. do you invest in the Knoxville market? looking to buy a few rentals...is multi family the way to go, or SFR? any recommendations on the best areas? Thanks!
Realtor · Gatlinburg, TN · Member since 2018 · 261 posts · 155 votes
7y
@Gregory Massi No investments in Knox for me yet. Trying to get settled and sell some homes in other areas first.
As far as your potential rentals, in my opinion, it depends on your goals:
If you're flipping, it's hard to go wrong with SFRs in this hot market. A good SFR priced right can be under contract in a week.
If you're buy & hold, MFRs might be the way to go b/c of the cash flow, but many folks know exactly what their MFR is worth so they're pricing it aggressively hoping to get max value in a hot market.
Investor · Scottsdale AZ · Member since 2015 · 1k+ posts · 423 votes
7y
My favorite are SFRs. Very easy to find motivated sellers, pay cash, and purchase below current value. Since we do not want to do the reno, we instead mark them up a bit and resell in days to a flipper/investor. (In the Phoenix area, we make $25k-60k *and* our buyer/investor makes even MORE $ after they do the work.)
I've asked them why they don't do what I do and cut me out of the deal and they always say either "data is not my thing & I don't want to learn what you do" or "I really like our arrangment and want to do the creative/reno part".
We have built some great relationships and are expanding this to multiple cities...
Investor · Scottsdale AZ · Member since 2015 · 1k+ posts · 423 votes
7y
I do not personally have any deals in TN now, but I have associates using this concept on infill lots in TN. (They buy like I do and resell the lots to builders.)
Realtor · Gatlinburg, TN · Member since 2018 · 261 posts · 155 votes
7y
@Gregory Massi it really depends on the quality of the home and needs of the seller(s). Ex) if it's a seller who is already under contract or waiting to sell before buying a new home, then a cash buyer usually trumps someone who has to get a mortgage.
Also depends if it's an in-demand home vs a home sitting stagnant on the market for 90+ days. I can usually get my clients bargains if it's a fixer-upper or a flip home if they can use cash and aren't too picky about the home inspection.