All Forum Posts by: Matthew Bowden

Well turns out they are going the Airbnb route. Luxury rental. $600 a night. Up to 10 people. No permit. 

I really appreciate the responses.

1) Yes the flipping company sold the house to the three investors.

2) Yes the flipping company is owner financing. The teacher is the only one on the Contract for Deed. Nothing recorded with the county indicates that the other two investors actually have an interest in the property. They simply made that representation when I talked to them. 

3) They were the ones that called it an investment:). I have been scratching my head ever since. 

4) From the county record it looked like the flipping company paid cash (at least there was no indication they took out a mortgage). Yeah, that is quite a bit of lost opportunity cost. Maybe they are planning on selling the note? 

Thanks for the insight.

It's in the Belmeade area of Nashville. Yeah its a beautiful house.

MB

Long time listener to both podcasts first time poster (so apologies if this is the wrong forum). I live in Nashville, TN. The house next door was purchased at foreclosure on December 2017 for $734,500.00 by a flipping company. The house was renovated and listed for sale at 1.5 million in July 2018. On Aug 14, 2018 it was de-listed. 

Earlier this week I learned that the house was purchased by three investors. Two relatively new real estate agents and a high school teacher. They were nice but very evasive when it came to what their plans were with the property. When I pulled the county records it shows a Contract for Deed detailing out a seller financing situation. The purchase price was 1.5 million with 9% down, 7,000 a month mortgage payments and a balloon payment after 5 years. Only the school teacher is on the deed. 

The house is 7,791 square feet with 5 bedrooms and 4 baths. It sits on over an acre of land. 

I am trying to ascertain what if any impact this will have on the value of my adjacent property. Is normal Airbnb lucrative enough to cover that type of mortgage?  I would appreciate any insight or thoughts on the above scenario. 

MB