All Forum Posts by: Josh Braun

We are seeing above normal exit prices right now. Favorable interest rates, current inventory and pre-selling some homes. Most of our buyers are moving in from California and Chicago. 

On a side note, Chattanooga (where we have a property mangement company) is doing great also. We are renting out $700-$1200 units consistently and 95%+ of tenants still paying rent.

I'd agree with Angela in the short term. As a builder, we are pre-selling some of our builds (some not even listed) and sometimes multiple offers. In the long term I'd say it is too soon to speculate. I think round two of the Cares Act, upcoming election and the fall slowdown of home buying will give us more info on what 2021 and beyond looks like.  For now, low interest rates, current inventory and no state income tax are positive factors.  I also tend to believe that the healthcare and tech companies in Nashville are key factors to our vibrant economy. We are seeing multiple folks move here from California and Chicago.

On a side note, Chattanooga (where we have a property mangement company) is doing great also. We are renting out $700-$1200 units consistently and 95%+ of tenants still paying rent.

Hey Marco - you are right that Nashville is a competitive market. There are plenty of realtors in the area. I've always been a fan of "finding a niche". For example, you could identify a pocket of town you love the most (or one that is closest to your home) and just go all in on that area, versus trying to tap into all areas.  Become the best at it, make your presence known, see what top producers are doing in that area and get in front of their opportunities. 

Another idea is to find the deal. By becoming a deal finder, you can then get others outside your sphere of influence to come to you, while expanding your sphere. How do you find the deal? Well, there are a few ways: start knocking on doors, give folks in the neighborhood gift cards or referral incentives for sending people your way, keep up the hand writing of letters (those have worked well for me in the past), and talk to local restaurants in the area to post your signage. In addition to finding the deal, figure out how to help people in the area solve problems. That builds trust and trust leads to referrals.  Hope that gives some additional ideas to chew on.

@Clay Bradley Chattanooga is great. I love it because of the solid blue collar work force and its centrally located on the I-24/75 corridor. There are some key healthcare, manufacturing and logistics companies there.  Its also within commuting distance of some smaller towns. Takes some work to find the deals, but if you are willing to roll up your sleeves there is still value to be added on fix/flips, buy/holds.

Are you looking to invest in booming Nashville?  We have a great turnkey rental for you!  Tenants with leases already in place.  We also have this setup with a property management company.  Complete turn key rental (duplex) to add to your portfolio.

https://www.realtor.com/realestateandhomes-detail/...

It is ordiance bl2017_608 for type 2 and type 3 permits in residential zones. Look that up on Google and you can see the details of it.  It passed in the planning commission and passed after the public hearing at metro council.  There is one more meeting before it is made official.  In the meantime, no new type 2 or type 3 residential zone permits will be issued.  

I'd plan on the ban happening and not make investing decisions based solely on this strategy.

As far as why this is happening, you need to look at those involved.  Sure, the high hotel prices are ridiculous, but the motives of those involved in this ban are not aligned with motives of investors and those who want the free market economy to reach equilibrium by allowing competition.  

Excellent job, @Luka Milicevic! Great description of a new construction project and love the pictures.   You don't see a lot of posts related to new builds and you've basically given the BP nation an A to Z guide on how to do a new construction deal. Way to hustle and get to the finish line on this one!  This post would be a great one to include in the next email newsletter! @Brandon Turner  @Mindy Jensen

Excellent job @Luka Milicevic.  Great example and breakdown of the numbers and process!  You post on here a lot and always provide value to others.  Excellent work in getting this done, while working a full-time job.  Results come to those that put in the work and hustle.  #168

Happy to chime in @Andrew Adamany.  I'd agree with @Aaron Lovett and throw out the duplex.  I think your best bet is to use the triplex that is under contract.  If that triplex under contract is the one of of Spring street, I'd confirm what they are buying it at.

I would never buy something solely based on just the cash flow and current tenants in place.  Ask yourself if you had to offload it, what could you realistically sell it for at market price? That needs to be one of your backup strategies.  Always have 2-3 strategies.

I know what property this is and I would say your $25k repair estimate is low. Also, this one isn't setup like a normal triplex, its more of a SFR that was converted to rent by the room. Think about that when you consider what type of future tenants you are going to market to.

For houses >50 years old in the Murfreesboro market, I'd go with the market price of the property times 70% and then minus repairs to arrive at your maximum allowable offer (MAO). That is my formula, so do whatever you are comfortable with.

Couple items of feedback on your proforma:

• I don't know any property managers in Murfreesboro doing 4%.  10-12% is the norm
• I'd assume a 10-15% vacancy for rent by the room, versus 5%
• 5% repairs for a 100 year old home? I'd bump that to 15-20%
• Your monthly allocation for property taxes are incorrect. Go back and check the tax record and make sure you account for city and county

Feedback above is solely my opinion and you asked "what you would do with this sort of deal". I would say count it as a good exercise in running your numbers and be thankful you didn't get into a situation with only one exit strategy.