All Forum Posts by: Victor Jernigan

Brian Chamberlain - bchamberlain@gmail.com - is excellent. He is local and has a proven track record of success with a wide range of incomes and personal situations that have harmed an individual's credit.

@Cassy Trask I look forward to speaking with you about your property sales in Knoxville. I am in the market every day and can be on or off as a buyer within a few hours of you providing the address. Additionally, Blue Ribbon Homes includes a property management team explicitly designed to handle my portfolio and is now offering a range of services to other investors.

I own BlueRibbonHomes, a full-service brokerage that includes property management. Originally created to manage my portfolio of SFR, it is now expanding to add more third-party clients. I look forward to speaking with you in more detail.

There are about 1,500 new class A apartments opening this year along the Pellissippi Pkwy from Hardin Valley to Topside. The average monthly rent for a 3 bedroom 2 bath will be about $2,500. This will cause some downward pressure on single family rentals. Your 4th bedroom is a plus but the 3rd bath is the real bonus. The fenced yard is a positive for small children (no added value) and dog owners ($50 month added value). You can anticipate a long term rental will be in the range of $2,700-$3,200. An equal or better option is for furnished mid-term rental which should be closer to $4,200 per month. Typical management fees in Knoxville are about 8%-12% monthly with some variable fee for leasing. Expect to pay about 20% for mid-term rentals.

Since you made the wise decision to get a 15 year mortgage, ignore any "rule of thumb" you may read on BP or any where else. You are simply paying down debt significantly faster than those who use those calculation.

Also, if possible do not sell. The market in Knoxville is increasing at an increasing rate. The for sale market may not get as high as your husband thinks, but the rental demand will be consistent to increasing for the next 5-7 years. 

Good Fortune,

@Ashley Collins , please provide a little more description of your house—#bed and #bath, style, fenced yard, square footage, and general location. With that information, I can give you the current market rent range and a general price idea. Separately, congratulations on the low rate and 15-year mortgage. 

@Kirsten Wright Did you get the property closed today?  Although the rental market in Knoxville is one of the top 5 in the US, there are still some submarkets that are much stronger than others. If you provide more information about the house specification and the specific area in Knoxville Area where the house is located, I can provide better recommendations and suggestions.

@Matt Berklacy 

I am looking for opportunities every day in the entire Knox Metro Area. I am a cash buyer and regularly do remodels over $50K. The questions I have is: Why are you a good JV partner for me?

@Wayne Norman - Although the Bigger Pockets lease may be adequate and would certainly be a guide, as you are just getting started I recommend you spend the time and money to begin working with a local real estate attorney. A correctly drafted lease for the State of Tennessee will save you thousands in the event you have a tenant problem. There are many good attorneys mentioned in other threads about Knoxville.

@Jeff Terry - Realtors are not allowed to answer either of your questions - the 1st is a violation of Fair Housing Law and the 2nd is a legal problem in that it is considered giving investment advice. I suggest you reach out to any of several good investor/Realtors in East TN who are also involved with local investment groups - @Derek Tellier and Whitney Nicely for example. They can introduce you to other local investors and show you where they are investing. 

@Warren Bryant I notice you are an ICU Nurse - my daughter is a CRNA and has bee working in her ICU due to Covid - you have a very difficult job. Why add more stress or make your life more complicated by working to resolve the current property owner's issues on a this project? The owner is selling a non-approved duplex - it is illegal under the current zoning laws. The agent that has it listed should have adjusted the price to compensate for the cost and risk needed to bring the property into compliance - but probably did not. There are more deals to do.  

Additionally the owner is at risk because he may be required to convert the duplex back to a single family, if you fail at the rezoning. If you represent yourself, the cost of you going to Planning is about $750 and 120 days. Add another $2,000 -$3,000 in expense, if you need an attorney and and another $1,000-$2,000, if you need any type of exhibit drawing for Planning. Then if the request is denied you will have lost all the money and time as well as the owner will no longer have two rental units. In which case, he may decide to sue his real estate agent, you and your agent.