All Forum Posts by: Jack Montague

 It is definitely odd. Had an issue with trying to self-permit a build a few years back that was an HPR but had an "A" and "B" designation. Nashville views HPRs as duplexes technically. 

MTR are gold right now for traveling nurses. If you could furnish the rooms, I'd say that is best bet for cash flow. LTR would be the next best route.

I think borrowing all of your money to first get into real estate is a dangerous game, especially in this market. Money is expensive and prices are going down. 

If I were in your shoes and your goal is to get into real estate, I would find the deals and acquire equity by finding good opportunities. You can find the money if you can find good deals, but this also helps you to analyze deals which will guide you in the future. 

But as @Nathan Gesner mentioned... You have to try your best to increase your income, lower your expenses, and save up some money. Try to create other income streams.

@Marshall Sanders First off, congrats on getting into real estate, lucky for you the first deal is one where you can have immediate equity. Hendersonville is also a fantastic area to buy right now. I'm familiar with the outskirts of Nashville, and Hendersonville is a great spot for appreciation in the near future.

I just did a deal where I paid cash and got a HELOC for 75% LTV. Much like people have mentioned above about a line of credit. 75% of the appraised value comes right above the purchase price of $180k at $183,750. Therefore, if you wanted to go with a HELOC secured by the home you would only have to leave $3,750 into the property, without considering closing costs. My rate was 4.5%, so if you decided to use a HELOC your monthly payment would be somewhere around $690. However, that is all interest, so you aren't paying down a mortgage.

An FHA loan is also not bad with little cash down. Over time you could refinance and pull cash out. It all just depends on what you would like to do personally, and in an appreciating area like Hendersonville, this is a safe play as well.

If you have any questions or would just like to expand your network in the Nashville area, please feel free to reach out at anytime!

Hey all,

I'd be happy to meet with anyone as well! I got back into RE in January of this year. My partner and I have flipped a house and a lot, bought a long-term rental, own a lot where we will build a rental, and are currently under contract with a property where we will HPR the lot and sell the back lot and flip the front house. 

We have capital but are self-employed, so partnering with others with monthly income is what we are looking to do in the near future. 

@Jill Broadhurst To answer your question, I think it is completely up to your goals and plan. Are you trying to get as many units as possible? Are you more comfortable buying single-family or multi-family? I know in the Nashville area, nothing is more competitive than multi-family, even duplexes. So if you can get your hands on a multi for the right price, I think it's a home run. With that being said, Gallatin, Lebanon, Mt Juliet, all fit the criteria you are looking for. I grew up in Williamson Co, so I may be biased but I think their school systems are some of the top in the country. So Spring Hill, Thompson Station, Nolensville, and Franklin are great areas. Williamson Co. is very expensive though, and I don't know how much the numbers make sense for investments right now.

Hey Kyle,

Congrats on getting into Real Estate. It is most definitely enjoyable and rewarding. I got back into RE full time in January of this year in Nashville after leaving Corporate America in Dallas, TX. Because I was self-employed, I partnered with 2 people on my first flip in January with a cash deal. I now own 2 lots, a long-term rental and am currently under contract with another home in the 12th south area that has another lot that can be subdivided. My full-time partner and I plan on selling the attached lot after subdividing, but we have used cash and HELOCs for our purchases strictly because we are self-employed and getting mortgages are obviously very difficult. 

It looks like you have a good idea on what you want to do. Rebuilds are never a bad idea, but in Nashville, they are hard to come by because every builder in town wants them. They need lots to stay busy, so if it hits the market you are probably out of luck to tear down and rebuild because it is too late. They know their numbers left and right, and know exactly what it costs to tear-down, sub-divide (HPR), and build. There is money to be had if you can find these properties, thats why you are seeing so many 'shotgun' style homes all over town. I've got two HPR lots, one I am selling and the other I am building a rental, so I know this market as well as the zoning of Nashville really well.

I'd be happy to chat anytime if you are looking for more specific details. Reach out anytime. 

 Do you mind PM'ing me the accountant you recommend as well?

Hello,

My partner and I have recently come across an opportunity to buy a plot of land for a group of home builders. The deal has since changed, and now we are unsure if we should proceed or not. Originally the deal was as follows: We buy the land, a construction company builds the houses and a large end-buyer would purchase the homes and rent them out. The end buyer was going to pay for all improvements on the land. Since then, the end-buyer has backed out of the deal. The builders now want us to pay for the improvements and infrastructure and the homes will have to be sold on the open market.  

We were planning on financing the land purchase and paying the note while infrastructure was being built. But including the land improvements will significantly cut our profit margin. We also have concerns that the builders will not be able to construct and sell the homes in a timely matter. 

This would be our first attempt at land financing, so we are wary about proceeding. 

Has anyone else had any similar deals? If so, we would love to know how you set up the deal. Do you have any do's or dont's we should be aware of? Things we can do to protect ourselves?

Thanks. 

@Mark Gliebe It’s north of Nipper’s Corner. I think we are on the same page, we might just turn around and flip it after a bathroom addition. Then put our cash towards something else.

Hey All,

I just wanted to pose a question out for everyone to get the pros and cons of this property that my partner and I are about to close on.

I know this gets posed a lot, but for this property itself, here are the details and numbers:

- Nashville, TN, $205,000 Purchase Price

- Agent Listed property as 3BR/2BA, but it is technically a 4/2.

- Rent for this area (not the greatest location) for a 3/2 range from $1500-1700 for this property. For a 4/2, $1700-2000. For a 4/3, $2000-2200. (Rough estimates)

- Recently renovated, no major upgrades needed. *We want to add a 3rd full bath upstairs for roughly $10,000.*

- Comparables for 4/3 are somewhere around $275k-$300k.

Please let me know what you think. Due diligence period is coming to an end here soon and what to hop on the bathroom addition ASAP. If you have any further questions, please let me know.

Thanks Michael. I'm ready to hit the ground running.