All Forum Posts by: Michael Hooper

I've got a 4 bedroom house that is just up the street from the Hospital in our town. I'm told there is a lot of opportunity to do short term rentals by the room for traveling nurses and professions like that. Are the any property managers in the Middle Tennessee area (specifically Murfreesboro) that offer that service?

I'm in the process of getting a loan for an investment property in my wife's name. I put it solely in her name because I thought it would be easier since she has a good paying job and all the other property debts are in my name. We're getting ready to close and they've asked where the down payment is coming from. I was going to pull it from my real estate account that I got before we were married and never put my wife's name on the account. I was getting it from there because our joint account doesn't have enough in it. Well, we a few days out from closing and the bank has told me that I can't "gift" my wife funds for a down payment on an investment property. I asked if I could just "loan" it to her on a promissory note and they said you also can't use unsecured loans as a down payment. 

So.... I feel kinda stuck at the moment. We've got the money, but no real way to use it that will satisfy the banks conditions. Anyone have any advice or can point to any rules that would say otherwise?

@Rhett Kelton I've looked at Fifth tlThird and US Bank. They both told me the same thing.

Does anyone know of a bank that does cash out refi's on rental properties. They're all telling me they only do them on primary residences "right now", I'm guess something to do with covid. I own the property outright, just need to pull some of the cash out of it. Does anyone know of a bank that is lending in the MIddle TN, area? Specifically Murfreesboro? 

@Jeremy F. It was a 3/1 when I purchased it. It's renting at $900, market rent for that area is about $1200 for that area for a mid grade 3/1. When I do some cosmetic updates it should be able to pull that, and if I add another bath, it should go for around $1300. It's not the best cash flow, but there is a good chance I can divide the lot and sell it off which would make a really good roi. Also people are starting to pour a lot of money into that part of town fixing up old houses. I think there's going to be some good appreciation in the long run.

@Curran Scarlata we're trying for a variance. We've got to get an engineer to draw up the subdivision first though.

@Curran Scarlata yes it's in down town Murfreesboro

I'm looking for a mortgage broker in the Middle Tennessee area, preferably Murfreesboro. Also, help me understand, does a broker shop around with various lenders for the best rate, or broker just a term used for a lender at a bank. I'm looking for the former.

Investment Info:

Single-family residence buy & hold investment.

Purchase price: $142,000
Cash invested: $142,000

3 bed/1 bath. Will be renovating and raising rent once tenants lease is up

How did you find this deal and how did you negotiate it?

Auction

How did you finance this deal?

Cash

How did you add value to the deal?

Will be remodeling to convert to 3 bed/2 bath house.

I'm about to close on 28 acres in Tullahoma Tennessee (Middle Tennessee area) a little over a mile from down town. 7 Acres at the back of the property is in a floodplain, so that leaves around 20-21 usable acres. There's apartments on one side and a single family neighborhood on the other. The acreage is zoned for 10000sqft single family and duplex properties. I believe I can divide off the road front into about 8 or 9 lots and sell those to recoup my investment and leave me with about 15-18 acres of usable property. The issue is, I believe in Tullahoma, the cost to develop land (road, electrical, plumping, etc) will be more expensive than the total revenue from the lots. Also, the property has been tried to rezone for decades apparently for apartment/townhomes, but they neighbors raise a fuss and it has always gotten shot down. So the question is what is the highest and best use of the land. I won't have to pay much to got the lots ready by the road frontage, so I'll break even in that, but what do I do with the left over land? Or is selling off the frontage, not the best idea?