All Forum Posts by: Jamie Jones

Like others have stated, I believe Chattanooga will be the better investment in the long-term. Chattanooga is right in the middle of Nashville and Atlanta, and has a strong economy and vibrant downtown. 

That said, I know many homebuilders who are buying land and building like crazy in Manchester, so I don't think that is a bad option either. Many folks that work in Murfreesboro have been moving to Manchester due to lower home prices, so if we see softer housing prices anytime in the coming years, that could impact Manchester more as people who'd rather live in Murfreesboro move back. 

@Haley Day welcome to BP and the forums! There are a ton of folks on here from the Nashville area. As far as meet-ups, there a many small ones that come & go but REIN (Real Estate Investors of Nashville) is your best bet for a consistent monthly meet-up that is well attended. They have a main meeting on the 2nd Monday of each month and then smaller meet-ups in all the surrounding counties throughout the month. 

When starting out, it can be exciting and daunting to learn about all the new strategies and philosophies folks use to succeed in real estate investing. You listen to a podcast about someone killing it in self-storage and get excited, and then the next day listen to someone who owns a bunch of turn-key rentals, and you think that sounds great, until eventually you feel overwhelmed by all the options out there and go into an paralysis by analysis phase (speaking from experience). My advice is to find what fuels your inner fire, and then go all-in with it. Remember that your first couple deals probably won't be home runs, and it's more important to get into the game than the actual result of the deal. I just turned 30 this year so I am about the same age as you. I own a few long term rentals in the area and am a mortgage lender. Please feel free to reach out to me, I'm happy to help anyway I can. 

You guys won't regret getting started, especially at a young age! 

Hi David, I personally like 30 year loans. I can always pay more towards principal if I desire, but if/when I have vacancies or just want to put more funds towards other uses, I'm not locked in to the higher fixed payment that comes with a 15 or 20 year. 

Hi @Brian Toleno, Nashville definitely has had a lot of price appreciation over the last few years, but there are still deals to be found - especially in the suburbs. I have a couple of LTR in Murfreesboro (about 30 minutes south of Nashville). Let me know if I can help you with any kind of mortgage needs at all. Also happy to put you in touch with a couple of local RE agents that work with out-of-state investors often.  

Hi @Andrew Adams and welcome to Bigger Pockets! What part of Southern Illinois are you located in? I grew up in Herrin and currently own a duplex in Carterville. I am happy to help anyway I can. Let's connect! 

Hi @Agustin Conti, the rate itself looks about right for 20% down on conventional loan but points are a bit high. For reference, I'm at 8.125% with 2.5 points today. Just FYI, if you are able to swing 25% down, the points go down to less than 1%. 

Keep in mind that mortgage rates can change intraday, depending on economic date that influence mortgage bond prices. Today has been a good day for mortgage bonds, leading to lower rates. 

If you are a buy and hold investor, I think it would be softening rent prices. High interest rates wouldn't be a future concern on a current deal, since my rate is likely locked in for at least a few years depending on the financing structure (more than enough time for the Fed to change course and yields to lower, corresponding in higher MBS prices and lower mortgage rates). Limited inventory should only help hold up property values. However, I am concerned that even with a fixed rate loan, property taxes and home insurance costs (especially on the coasts) are going to keep rising, and if rents soften substantially, the market may not allow us to be able to pass those costs along to our tenants in the form of higher rents, turning our bottom line from black ink to red. 

They are likely telling you it has to be a commercial loan due to the LLC. Honestly, this is what frustrates me about the blanket advice on LLC's - it can limit your financing options and eliminate the cheapest money (which can sometimes be the difference between the numbers working or not working. I've done multiple loans like this and talked directly with Fannie Mae. You will have to do the loan in your personal name if you want a conventional 30 year loan, and make sure the purchase agreement is in your personal name as well. You can work with the title company after closing on signing a Quit Claim Deed to transfer the ownership out of your personal name and into your LLC, if desired. A potential risk that is many loans have what is called a "due on sale" clause, where they can call the note due in full if ownership changes. However, as long as the payments are being made, there is a very low chance of this happening.

Hi Ryan, congrats on the success you've had so far in REI - owning 3 SFR in Nashville is great. How do the numbers look if you use your HELOC? With your current rate being at 9.25% (prime + .75), I have to imagine that eats away a good portion of your cash flow, unless you found a killer deal. For example, if you pulled out $100k at that rate, your interest payment would be $770/mo. Combine that with a 1st mortgage rate likely in the high 7's or 8's, and that's tough to find cash flow.

Maybe look at blending the two? Pulling a little out of the HELOC so you don't drain your savings (and look better to lenders) and then use your savings to fund the rest of the down payment & closing costs.

Definitely agree you want to keep ample reserves as you grow your portfolio. The good news is you can use your HELOC as a safety net, even if you are not actively using the money to fund your growth.

Hi Ralph, welcome back to Nashville! As Elliott stated, I know some folks who have house-hacked in Donelson, as many homes there are ranches with separate entrances to basements. That wouldn't give you the separation you are looking for from your tenants, but would help make the numbers work. 

I have another buddy who bought a house in East Nashville with a detached garage that he rehabbed and used as a STR. That could be another option to look into, depending on the area.

I recommend talking with a realtor now who is well-versed and come up with a plan, and @Elliott Hallum is one of the best! He has helped me purchase multiple properties in the area.