All Forum Posts by: Matt Castle

@Carlos Cuervo I think it's possible, but I'd wager most lenders would want to qualify both of you on a single loan provided you showed who owns what percentage of the property.

I'd argue it would be easier to secure the loan via a business entity (LLCs are easier to maintain). Lenders may require you to personally guarantee the loan, but different lenders will have different requirements. 

I generally dislike the bunk beds look b/c it looks like you're purposely crowding people in for more money. Maybe some roll out beds stuffed in a closet somewhere or 1-2 sleeper sofas would improve the visual appeal on STR rental sites. Perhaps a Murphy bed if you like the look.

@Edward Jakubiak it's true some PMs still charge 30%-35% for management fees, but technology is slowly pricing them out of the market. The major resorts with their in-house PM are the big offenders b/c they own the place, get >% of google search results, get the calls, etc. 

Here in the Smokies, I've seen anything from 10% to 30%. 

Agreed with all on pricing. I do see a few below the 200k price point, but they usually have some issues ranging from cosmetic rehab to major fixes. When they do pop up, they're gone pretty quickly or have unique issues that slow down the sale (non-occupied buyers only, >$ rehab, title issues, etc). 

@Danny Matthews I can't speak for Chattanooga, although I hear it's doing well, but Knoxville has done very well over the last few years. Prices are up so your cash flow may be reduced, but it all depends on where and what you buy. 

Economy wise, even the radio ads are blasting job fairs and employers complain about finding quality labor with help wanted signs everywhere, so jobs are plentiful at this point. 

We have deals here, but they are becoming less frequent b/c homeowners/investors know they have an in-demand product. Knoxville does have a good supply of old inventory homes that could be flipped or rehabbed & rented. Let me know if you want more specific info and I'll try to oblige. 

@Troy Ritter VRBO isn't the only STR platform out there. Why would you reserve your property to this single platform only?

Push it out there to as many as you can, but make sure bookings are synchronized across all platforms so they don't double book it. 

Most areas of Knoxville have been booming for last 1-2 years. Neighborhoods that haven't gotten a lot of attention in prior years are becoming farming grounds for flippers. South Knoxville is particularly hot, as are the smaller cities on the periphery of Knoxville. 

So many new construction homes have popped up in last 2 years that anyone who needs a < 200k price or wants a decent cap rate have to buy old inventory and rehab. 

I don't get down to Chattanooga much, but I've heard similarly good things. 

Expanding on what others have said, the smaller cities around major cities are the high growth markets right now. Around Knoxville, I see a lot of Maryville, Sevierville, Lenoir City, etc. 

@Seth Atwell I'm in Knoxville and I know a few lenders who might be capable of doing a refi so you can rent your property. I don't think forum rules allow me to post their contact info, but DM me if you want their contact info and I'll send them over. 

Congrats! Always nice to have a proforma fail in the positive direction.