All Forum Posts by: Christopher B.

You will not get cheaper plumbing and electrical fixtures from the supply house. The fixtures at home depot are lower quality and they are cheaper. Just about everything else will be cheaper at the supply houses. Some of it significantly cheaper. I.e. 5 1/4 base at HD is around 1.60/lf, I pay .55/lf at the supply house.

There are some positive of HD though. Consistency with it being a 1 stop shop. Their backend office is very convenient, it integrates with QBO, etc. 

Don't kill yourself chasing cheaper prices, put that time into finding more projects.

You have 3 options for the rental: fha/conventional, portfolio loan from a local bank, HML rental loan which can be up to 30yrs fixed.

You can buy "cash" and then refinance or setup a LOC against the property (need to finance it with a local bank to do this) to get access to your full 20k again.

For the flip you have 4 options:

1.Private money (stick to the 3 F's in the beginning: Friends, Family, Fools). 

2. Local bank portfolio loan 

3. HML

4. Partner (half a watermelon is better than a whole grape right). 

With $20k in cash, a $133k purchase and $40k rehab you'll need someone to finance the flip for 90% of purchase price and 100% of renovations. This Will leave you approximately $5k ish in cash after fees to cover project expenses between draws. I'd recommend you to have a contingency in your budget plus add 5% to the overall rehab cost so you do not run into a shortage of funds.

1. Knox Native Real Estate (Laura or Katie)

2. Mountain Commerce Bank

3. We GC and manage property in house so can't recommend anyone there.

Hinds Surveying 

Warren, I converted a ranch house with a detached garage apartment into a legal multi a few years ago. Fortunately, that was back when we had reasonable leadership downtown that didn't want to make TN like California and I had the zoning for it. I have also routinely submitted documents downtown. I've never hired an attorney and use local surveyors/draftsman combined with fiverr. Not counting the application fees I'd say it costs me maybe $300 for the documentation which is a site plan and elevations, you may need an interior floorplan as well. These aren't architectural drawings, that would be overkill. So the cost, from my experience, can be reasonable if you are willing to do a little legwork.

You want to see if you have precedent, this goes a long way and it is hard for them to deny it if there is legal, converted duplex sitting across the street for example. I got denied on a couple new construction duplexes because they did not want to establish the precedent of allowing it in the area/situation. We settled on a house with a detached garage and apartment above it (I may have made it clear that mobile homes were permitted under the zoning and my next option if they denied the garage apartments too).

Nick is right. A lot of people own "illegal" multi's. Right now they are grandfathered in from my experience. They can shut them down sure, but I've not heard of a situation egregious enough where they have though I am sure it has happened. Anyone's advice is going to be centered you understanding and protecting yourself from the liabilities associated with owning such a property. Some people make them work for years without issue and others wouldn't touch them with a 10' pole so only you can determine what you are comfortable with. 

Go tankless. Had one for 5yrs and zero issues. Will install tankless in our new house as well when we rehab. A common theme among posts here is Rheem. Reality is they are not good water heaters whether tank or tankless. Don't buy your water heater from Home Depot. Do some research, talk to your plumber and/or hvac guy, then go buy a quality unit from a local plumbing supply house. 

Northwest is ok. Blue collar. Some spots nicer than others. Sounds like it's either in the Inskip or Pleasant Ridge area. I have some rentals in Inskip myself, they have done well but that area doesnt appreciate as strongly as other parts of Knoxville. If it is off Western Ave. then you want to be on the West side towards Powell/Karns area vs the East side towards downtown. 

 For business, Mountain Commerce Bank. For a personal home go with MIG. They're the largest mortgage lender in the state, many local banks sell their loans to them. 

David, reach out anytime 

There is a "guru" on here who claims they are "THE" expert in SS. I would stay far, far away from this shady person. Michael Wagner has a good model.