All Forum Posts by: Matthew Robertson

Thanks @Zach Quick!

Hey @Greg Dickerson, yes I have offered owner financing and even lease/purchase options.

I purchased a commercial property years ago in which I operated a business out of.  The business has since been dissolved and I have rented the property to tenants off and on.  The property is in sort of a rural area and the market isn't very active.  The property recently became vacant and I have listed it for sale.  After several months and several price drops there haven't been any offers whatsoever.  It is priced low relative to comparable properties.  I still own the property under owner financing from the previous seller and between the payment to him and taxes+insurance I barely break even at what the building would rent for.  I could refinance it into a commercial bank loan and be about $150 mo. in the black but it just doesn't seem like it would be worth my while to keep it.  I live almost 2 hours away and don't have time to get to the property very often.  

The building is approximately 2000 sq ft. Half of the inside is nicely finished office space with a large lobby and 2 offices + file storage room.  The other half of the building is an open bay garage area with two 8ft. garage doors (uninsulated space).  This building sits on about 1.2 acres with most of the lot being unused.  The property is on a main thoroughfare between two towns with over 14,000 cars passing per day.  There are a couple of lakes nearby and a lot of people visit the area for that.

Some of the options I have considered are:

-Building boat storage on the the unused lot space (moderate initial investment, low return, fairly passive)

-Mini storage units (high initial investment, moderate return, needs active mgmt)

-Placing 1-3 mobile homes on the unused portion of the lot (high initial investment, moderate return, fairly passive)

Any ideas would be appreciated!

Does any Nashville RE investors have a recommendation for a CPA that's well versed in Real Estate Transactions, LLCs, K1's, Business tax strategy, etc?

I am looking into possibly turning my owner occupied duplex into an HPR or Zero Lot Line property, then selling off each side separately.  I haven't done much research yet into how to go about legally doing this but assuming I can, will the profits off of this sale be tax free since I have lived in it as a primary residence for 2 of the last 5 years?

Hello BP,

I am going into a deal where I would be converting a duplex into a single family, renovating, then selling.  One of my problems is I have tenants in one side of the duplex that just signed a 1 year lease with the previous owners.

What would be a competitive offer to have them vacate the property early?  I'm thinking 60 days rent free then an additional 3-4 months rent in a lump sum when the property is vacated.  This amount is roughly what i've got allocated into the budget but am willing to negotiate to get this deal done.

A little background...they are paying below market rent in a generally sought after area (East Nash).  The property is by no means impressive and they could find something much better by paying a bit more each month and still be close to everything.  The father is a cook, the mother doesn't work, and they have a small child.

Any rehabbers or investors experience this in the past?

@William R. I've seen similar numbers in Bowling Green around WKU's campus. Old structures that need updating but the location premium and repair costs kill the profitability. I've had a couple of unsuccessful bid attempts in BG.

@Michael Seeker - My dad is a rehabber in the Nashville area. He keeps an eye on everything while I am gone, including rent collection. I am transitioning to a different line of work back near home so the responsibility will be all mine soon :-)

Great topic Michael.

I am a fellow investor south of you, in the Bowling Green/Nashville area.

My day job isn't like most. I deploy for 3 months at a time to Afghanistan for a major defense contractor flying on surveillance aircraft. It gives me plenty of time to read and do research on different markets or different investments. I like to think the attention to detail I use every day helps out too when it comes to deal analysis. And probably the biggest carryover is the large paycheck coupled with my low standard of living. I am 25 with no wife or kids and I am an owner/occupant of a 4plex back in bowling green, which I also share with a roommate. My only REAL expenses are water, electric, car insurance, gas, and food. All my other income goes towards my investment portfolio in hopes of growing it way faster than my increase in living standards. So the big paycheck is probably my biggest carryover.

Hey @Damien Shoemake , So-Afghan is about as expected. Plenty of distressed property here for those looking to invest in rough neighborhoods :-)

David, I have only been an investor in Nashville since this spring. I completed a rehab on a SFR in Old Hickory Village, just got it rented a couple weeks ago. I also live in and own a 4 plex about an hour north in Bowling Green, KY. Still relatively new to real estate investing, just starting my second year! From what i've seen so far Nashville offers just about every kind of investment opportunity. It all depends on what you want to specialize in. As previously linked by @Paul Timmins http://www.biggerpockets.com/real-estate-investing is a great start to figuring out what you want to invest in.

This blog is a treasure trove of learning opportunities and everyone is super friendly. I come here with all of my REI questions.