All Forum Posts by: Bruce Knauff

I would like to purchase a STR in Nashville TN approximately 15 mins from Broadway. Anyone in the area got a deal?

@Jon Kelly Thanks for the reply when I started out I intended to go down the BRRRR route. I have called several local banks (I still have more to call just have been at work and not been able to call all of them yet) but the several I have talked to so far have offered me a variation of 20 yr fixed for 5 years then adjusts every 5 years or 20 yr fixed for 5 years and then can adjust up or down every year for the term of the loan. This kind of scares me, is this a typical kind of loan you guys see or use?

@Justin Fox Thank you for the response that is also something I will definitely take into consideration, I had budgeted roughly the same number you mentioned for repairs/capex/vacancy. Do you have to cash out at 75% or 80% LTV? I was thinking honestly of only trying to get about 20k back out to replace what I had initially put in. That would help protect some of the cashflow. That was a really good point I will have to think about.

@Angel Dejesus I was actually considering a duplex but it sold before I could finish the refi process I am looking into purchasing something with more doors, the inventory for such properties in my area is scarce and I would have to look at a bigger city several hours away where property is much more expensive. Or wait for another to come on the market here. I am still not against it I would just have to think creatively like you said to make a deal like that happen. 

@Jon Kelly I believe that what you're describing would be more easily achievable in my area. My question is for both scenarios how would I go about pulling the equity back out for a third property? Would it work the same as the first buy something with some TLC needed and force the equity I would need to pull it back out for a third?

Thanks all!

@Caleb Brown That sounds pretty darn good I don't know the costs you have to operate it of course. If I can get this deal refi and the cash out then yea I would be interested in seeing some deals like that. 

@Jaron Walling That is exactly what I was thinking I am afraid of pulling out more than I need to get my initial investment back out. I also don't want to pull so much out it hurts the cashflow. I like homes that need a little help, even around here though like you said prices are following the countries trend and are rising fast. The town I am investing in is a college town so there is a pretty stable market as long as you are within 5 minutes of the college. Sounds like I need to do some more driving for dollars.

@Andrew Postell Thanks for the information I was not aware there were state specific forums here, I will definitely be checking that out as well as Meetup.com!

@Caleb Brown Thanks as well I will ask for some comps, I am not sure yet. My initial thoughts are to continue brrring and trying to buildup cashflow. I have also thought about trying an AirBNB. I really like the potential returns on those have done any of them?

Thanks @Tim Lucas! I am really wanting to get that cash out so I can do another deal. Trying to decide on another LTR or look into STR's!

@Jaron Walling Thanks! The tenants pay all the utilities except the water, sewer, and trash because the city pretty much forces landlords to cover those utilities. I realize that it is a low amount of debt but keep in mind I live in a VERY rural and poor area. I make good money for around here at my 9-5 but it wouldn't be anything to write home about in a bigger city. I understand your point about paying it off quickly, I thought about that too. However it would take me quite a while to save up the cash required for another down payment. I just figured trying to cash out refi would help me scale faster. Any thoughts?

Hey all longtime forum reader/podcast watcher new poster here. Last July I finally took the plunge into real estate investing and purchased a SFR in need of some TLC but nothing too major. I lived in it for 6 months which was part of the terms of the grant I got towards the down payment.

Now I have moved out and I am finally renting the property out. Which is great keep in mind where I live houses are very cheap compared to some of the markets I know you guys are in. Here are some of the basic numbers involved. 

I bought the house using a conventional, fixed 20% down 15 yr mortgage for 36k. Since purchase I have improved the property and brought the property value up to somewhere around 60-70k. Caveat here is I haven't had the property appraised I am basing that off the proximity to the local college and other houses selling in the area. (my friend just sold a house a block farther away from campus and several hundred sq. ft. less in worse shape for 60k.) I owe 28k on the house still and would like to refinance, get my cash back out for another deal (20k would replace my costs on the deal), and maybe try to get into a 30 yr to help improve cashflow. My question is what are your guys and gals recommendations or comments on what the best vehicle to get this done is?

Side note: The house is renting at 900 per month currently and taxes, ins, mortgage is 377 per month. I also pay water, sewer, trash usually around 60-65 per month. I feel like I have done pretty well up to this point but am hoping to hear more experienced thoughts on the best way forward.

Thanks,

Bruce