All Forum Posts by: Matt Hudson

@Jonathan Balos

Most area will allow owner-occupied STR's unless you buy within an HOA. Sylvan Park and the Nations operate under the Davidson County STR's laws, so there should be no issues in those particular neighborhoods. You can find more info by visiting Nashville Codes at
https://www.nashville.gov/Codes-Administration/Short-Term-Rentals.aspx

I'd also consider areas as close to downtown as possible. These homes will rent more often for a higher rate as most people visit Nashville to go downtown. You should talk to @Steve Frye so he can show you what is available. Good luck!

@Jason Nordwall

Here you go! http://www.reintn.org/

@Jason Nordwall 

Welcome to BP! I'm a newbie out of Nashville with a similar story. I would highly recommend connecting with the local REIN and to also join their Facebook group. Good luck! 

@Dennis M. That is yet to be determined and will come out in conversation. Being that this will be my first seller financing deal I'm trying to get an idea of properly structure it to where all parties win. 

@Dan Beaulieu

I see what you are saying. The thought is I don't think they will go for seller financing terms much over 10 years. Being she said they want money now and the are ~63 years old. The benefit is obviously not short term cash flow. If I could extend the terms to 15 years then I could cash flow ($1041.66 payment for 180 months - Rent $1500). Maybe there is a middle ground...12 years. However, I would be getting the property at 0% interest and paying it completely off in 10 years. 

If they go the all cash option then I will gladly fix and flip or BRRR depending on the extent of the rehab.

Hey @Dan Beaulieu! Good to talk to you again and I appreciate the insight! 

During our initial conversation I asked her why she was wanting to sell. Her response was that they are getting older and would like to have the money. He concern however was her long term tenant. She spoke in detail on how she was not wanted to leave her stranded. So I've been trying to structure offers that satisfy those concerns. Not so easy...

So I came up with 3 offers this morning. Being that they are in their early 60s I was trying to keep the terms at 10 years or less. I was also trying to incorporate concessions for the current tenant who is currently paying $725 where the average rent (for that same size home) is $1500+. So I unfortunately will not be able to keep her there.

Comps: Fully renovated ~$300k. Similar properties in a "As-is" ~$230k

Offer #1: ARV $290,700k ($255/sqft) x .70 = $203,490 – $53,490 (repairs) = $150k

• Seller: Pro – Get all cash up front. Con – Decreased purchased price and captain gains hit.
• Buyer: Pro – Decreased purchase price. Con – Large capital outlay in purchase and repair. Higher risk flip.
• Tenant: Pro – 30 Days to vacate and a $725 buyer credit. Con – Must leave in 30 days

Offer #2: Purchase at $200k – 20k down and $180k in 5 years

• Seller: Pro – Some cash up front. Con – No more cash until year 5
• Buyer: Pro – Less money upfront. Con – Capital outlay of repair to get higher price in rent
• Tenant: Pro – 60 Days to vacate. Con – No seller credit

Offer #3: $228k - $40,500 down = $187,500 then $1500/mo after 90 days for 125 months

• Seller: Pro – Good amount of cash up front. Premium Price. More than double rent monthly. Deferred taxes. Con – Payout is 125 months
• Buyer: Pro – Marginal amount upfront. Payment plan. Con – Not buying below market value.
• Tenant: Pro – 90 Days to vacate. Con – Still having to move

The seller and I spoke again last night. We are going to have lunch week after next in St. Augustine, FL. We just happen to be there at the same time. Wish me luck!!!

Hey @Steve Frye! A unicorn is right!!! That's why I want to make this work for all 3 parties involved.

I own an advertising agency so I feel like I have the ability to write compelling copy. However, I'm by no means an expert at real estate skip tracing or direct mail! I'm an avid runner and have ran hundreds of miles around this neighborhood through the years. So, I subscribed to DealMachine.com and as I see properties that I feel like have potential I enter them into my database right on the spot. Takes literally 10 seconds and I'm on my way. It's less quantity and more quality. I haven't gotten a deal yet from the mailer but have only sent out about 400 total mailers in the last 2 months. I'll keep you posted as times goes along...

Last week I received a call from a mailer. The gentleman asked me abruptly, "How much will you buy my house for?!". Before I could reply he proceeded to berate me and call me a "f*#$%ing vulture". 

Fast forward to today I get a call from a nice lady who rents her a house in East Nashville. One of the hottest markets in Nashville and just down the street from my home. She owns it outright and is willing to talk about a purchase. I WANT THIS HOUSE!

She has had the same renter for 15 years and the renter takes great care of the house. I drove by the home and it look like an older woman that has really put her roots down. 

East Nashville, like many other urban neighborhoods, has seen major gentrification. Affordable housing is an issue and older renters and homeowners are getting displaced. The idea of contributing to this doesn't appeal to me. How do I structure this deal while keeping the tenant?

I'm not certain what the current tenant pays but I 100% guarantee it's not the $1500/mo rent the house could get. It's likely $750-800/mo.  

Thrilled to get a accepted offer! However, like I said in the description of the post...accepted offer on Friday the 13th, with a full moon, address 409 Elm Street, 4+0+9=13, and the closing date is October 31st.

I'll keep y'all posted after rehab on whether the deal is truly cursed!

If anyone has any recommendations on a good local priest or a video on how to smudge please let me know.

@Bruce Moheit

What date and time were you thinking?