All Forum Posts by: Eric Yow

Try Cumberland Bank & Trust.

Andy, I live, work, and invest heavily in Clarksville.  I can say it was a lot easier in 2017 than it is now.  B class neighborhoods, on market, would put you at best at about .8% rent to investment.  A few years ago, you could find 1.0-1.2% pretty easily.  Now you've got to go off-market.  I'm not seeing many wholesalers put out much B class stuff (lots of D class), but when they do, it's still hard to get a good rent to investment ratio.  Too many variables to answer your last question very specifically, but I can tell you about one I have.  I bought an off-market (my own lead-gen) B class for 130k, renovated for <10k, and am renting at 1495/mo.  (1.1% rent-to-investment).  Taxes 1641/yr.  Farm Bureau ins 529/yr (cheaper than it should be, imo).  Hope this helps.

I live, work, and invest heavily in Clarksville.  If I can help, let me know.  

Deal 1 is C-, maybe D+, but not the worst area of Clarksville.  I wouldn't send my wife knocking on doors asking for rent after dark, kinda place.  Higher crime rate than Deal 2, for sure.  Deal 2 area is just fine.  I'd buy both.  Matter of fact, whichever you don't buy, send it to me.  I'll pay you a referral fee if it's an off-market deal.

If you're putting 3% down, why would you want to BRRR and refinance out? Seems like you'd have so little in the deal it wouldn't justify the expense of the refi to pull it out. I don't like the conventional side, on account of the hoops you have to jump through and the mortgage insurance premiums, etc. You could use a short term lender, hard money lender, a friend, or some savings you may have to just buy it cash (makes for a stronger offer, too), then refi after it is repaired and rented. Just a thought.

If it's your first deal, find someone experienced that you can trust, run all the numbers, details, etc. by them before you pull the trigger.  Clarksville is easier to buy than Franklin, but the grass is not always greener simply because it's on the other side.  It's easier to think that everyone else's market is better than your own.  

I'd be surprised if a 2/1 in Clarksville truly has an ARV of 150k, but assuming that's correct, flip it! Take the $30k you'd make, give generously to your church, pay your short term capital gains, and put the rest in two or three different properties that CF better than this one. Boom! If there's anything I can do to help along the way, let me know.

I use the BRRR strategy in Clarksville and have had great success with some of our local banks, up here. F&M Bank is wonderful and offers a 5 yr term 25 yr amortization, with competitive rates. I've also got a few HELOCs with them. Cumberland Bank & Trust (First Federal, now) has matched the best rates, but with a 5/20, and has closed mine in as little as 15 days (already having my financials). First Advantage has a 5/20 with competitive rates, but it has taken a bit longer. If you need direct contact names/numbers for any of my bankers up here, I'll gladly send them your way. They are seriously good folks and crucial to our success. Anything I can do to help, let me know.

I live and invest in Clarksville. Welcome to the REI journey. I'd start by networking like crazy. Join the private FB group Clarksville Real Estate Investors Group (CREIG). Go to any REI meetings you can find. And read a lot. Good luck along the way!

I live and invest in Clarksville (~50 doors).  Deal 1 is great in what I call a C class neighborhood.  If you're truly in a D class (e.g. New Providence), it would not be my first choice.  Without announcing the address, can you specify what area?  I could give you more relevant input.  There are a lot of D class investors who make a killing in CF, but I understand they try to get closer to the 2% rule.  I have one property in what I'd call D+ and it is my hardest to rent.  I've yet to buy in New Providence or other similar war zones.  I'm not against it, for diversification, but it wouldn't be my first choice.  If the nbhd is really a C class (e.g. Donna Dr area), they rent well and you'll be in better shape, facing less of the challenges that D class brings.

Deal 2 is much more attractive, in my opinion, assuming your reno estimates are accurate and there are no major CapX coming up very soon. If you can be all in at $75k on a house that rents for 900 and is worth 100k, that's a keeper, imo. I'd use cash or a LOC to buy it, renovate it, rent it, then refinance it. You could pull out 70% LTV and be in good shape. It will cash flow, you'll have very little of your own money in the deal, it will have some equity spread to cushion a market pull-back, and the rent-to-investment ratio will be strong enough to cash flow about $100 after all expenses and accounting for repairs/maint. [This is precisely my investing strategy.]

Deal 1 sounds like good money because the CF is higher, but I like to consider the other ways REI makes money, when weighing such a decision. While I don't buy based on anticipated appreciation, I keep it in mind. D class properties are extremely unlikely to appreciate, while B class will be likely to do so. If the 100k property increases a mere 4%/yr, you made an additional "$333/mo" in appreciation in year one alone, making Deal 2 a much more attractive deal. Factor in principal reduction and tax advantages, too. My gut says Deal 2 all day long.

If Deal 1 is really in a C class neighborhood...buy both!  :D

It's an exciting time. Happy to be a part of it. 

I have not gone to the meet up yet but I sure plan to sometime soon.  Great idea.  We are expanding our rental portfolio and have high aspirations for this year. 

I cannot answer your question about whether or not I am looking for properties, because, if I answer in the affirmative, BP will delete my post. Let's just say I'm looking to make friends with people who wholesale properties in Clarksville.

Do you wholesale?