All Forum Posts by: Charlene Fetzer

Hey @Luka Milicevic

Thanks for the insight on the market. I have a feeling Nashville won’t slow down for a longgggggg time. We have too many people moving here and the supply as you mentioned.

As far as the renovation, most is cosmetic at this point, but some would be necessary to resell. And definitely necessary for short term rental quality in this market. I did a full reno on unit A and I completed the foundation work advised by my structural engineer. I went on what he said, but it is still something to watch. The house is older so it’s deciding where to invest money into the same property. Where is the point of diminishing returns

This is my primary residence and I’ve lived here over 2 years. Taxes are definitely a big consideration because that’s part of the strategy. The house is just a bit of a headache and constantly needs attention. The PM isn’t great and I’ve had to manage it a lot. All that to say this house has been a good investment and if I hold out a couple more years it may be more beneficial then I can 1031 into a better property. Best of luck out there in Nash!

@Travis Timmons it’s very true. Not to get too deep into health issues but I do believe chronic stress and pressure weighed in on my personal situation. I have learned to let go of anything that isn’t serving me. The property gives so many options it’s nice to have an out if I need it. I will definitely think long and hard before making a more permanent decision and I’ll report back!

@Nicholas L. Thanks this is something I wasn’t considering but good to know and helpful! Thanks for the luck :)

@Dev Conboy Ah! A local fellow investor! Nice to meet ya!

Yes, I completely agree. Having cash flowing assets in Nashville are hard to come by. I do think about how hard it was for me to find the right purchase and then how hard it could be again. (I mean $69/sq ft!) I don’t love the idea of owning a bunch of houses I do think I’d prefer large multifamily investments and I’ve been to a conference or two looking into that avenue. I didn’t mention my lot is 2.35 acres and zone R10. Which means some developer (or me) could theoretically place 10 homes on this lot. My plan was to hold to a million originally. I also live off Briley 10 minutes north of the city. So my area hasn’t become developed yet like East. In 10 years it will likely be nutso. The city has no where to go but up eventually and I’m already seeing changes. I have lived in the home so I will skirt around some cap gains, but not all. Let’s say I clear 300k and throw it into the S&P at 8% return that would be $2400 monthly also. This is why it’s a hard choice.

I do appreciate your insight. You know the market well and see the growth first hand. I like the idea of a good vacation. To net 3000 I will have to completely move out and either find a home to buy or get a place to rent in the meantime which reduces the profitability I suppose, depending on how you look at it.

@Travis Timmons I appreciate your insight and thank you for taking my personal situation into consideration as well. I actually just recently thought of selling because my plan was to hold until a million. But I also didn’t expect to have to touch the house as much as I have after such a large reno. I have so much more knowledge as you stated and I feel “lucky” this house has been able to provide what it has.

Alright, I thought I would throw this to the group to see thoughts.

I bought my first investment property in March of 2020 (crazy timing) for $229,000/$69 sq ft in Nashville TN. Extremely hot market. It is a duplex and half was in terrible condition. I used hard money to reconstruct unit A and unit B was in good condition (still needed work but not as much). I refinanced (not a cash out refi) for $270,000.

Now, with forced appreciation and natural appreciation it’s likely to sell upwards of $600,000.

I have rented unit A for $1860 a month gross ($1704 minus PM) . The PMTI is currently at $1793. I also live in part of unit B. I also Airbnb a private room at about $1200 net. I did not intend on living in unit B but with covid then breast cancer it provided me a almost free space to live (I didn't Airbnb during cancer treatments). So yes, this house is cash flowing well. I'm not including CapEx and on going maintenance at the moment. And I have the permit to fully Airbnb at likely $2500-3000 monthly on top of Unit A tenants.

This all sounds great, but the property still needs a lot of work. The backyard needs to be excavated, I need to install ductless or central in unit B. New toilets. To make it Airbnb worthy in my competitive market a bathroom likely needs to be rehabbed. Honestly to really make it great would be more than I’m willing to fork over for one property. Also, I’m watching the foundation. When I purchased it I had to install new footers and gut both bathrooms out, new joist etc. There was a 4in slope in a span of 8 feet in the front room. At that time I didn’t have $20-30 grand to just put Into the foundation. I did what I need to make it safe for tenants and would watch it for the next couple years.

I work contract jobs and banks hate no traditional work. It’s extremely difficult to get a heloc (trust me I’ve tried). Even the cash out refi has been excessively difficult and ultimately shut down. because of covid then breast cancer my last two years of tax returns are all jacked up, so the banks aren’t keen on me. My strategy was always buy and hold and this is my first investment. I rental arbitrage another monthly Airbnb in my market too. I could use the money to take some time off and travel and buy another property. I don’t want to be short sighted but also see the market is still a sellers market and investment properties are hit in Nashville. I started investing to create time freedom. Since cancer I see time even more valuable and the house has created more stress.

Curious on what you may do? Hold or sell?

Oh my gosh! I am so excited for this!!! I can't wait to meet all of you. 

@Emma Powell and @John Stoeber thank you so much for sharing! I am new to looking into commercial/MF and an excited to read more with this resource! 

@Eric DeNardo Thanks for creating this post. I am a new investor myself and have purchased a duplex using BRRRR which allowed me to gain equity in the house for buying power on the next purchase. My strategy was always to scale to reach financial freedom and the amount of time, money, energy it took for one home (even with great returns) in my area made me shift focus to multifamily. I believe what everyone says above that often times people are limited by the thought of entering MF. Like @Mack Benson mentioned a mentor can really set you up for success and residential doesn't have to come first unless you'd like, their network can be powerful and you will find investors ready to move on a good deal if you are smart about it. Best of luck!

@Cameron Lam that’s awesome! Congrats and thanks for sharing to inspire newbs like myself! Good luck with the plans, sounds like it will all work out!