All Forum Posts by: Wayne Woodson

I wouldn't say there is a best state overall but there are a few cities that stand out. Nashville sucks for house hacking as most of these properties can barley cashflow anything above a positive cap rate. Memphis and Chattanooga on the other hand seem to have better cashflow in my professional opinion.

Welcome to BiggerPockets! I am an investor in the Nashville area born and raised.

Quote from @Denis Ponder:

To clarify, did you buy your first property and it was your primary residence?  Or was it your first investment property?  The statement "How to buy your second investment property" implies you have a first investment property.  So just trying to make sure I understand the situation.

It depends on your goals. I would suggest a house hack, if you can. You can get another primary loan at 3.5% - 5% down, have help with the mortgage by renting the other units, or bedrooms if you want to go that route, rent out the first house, and be set. This is all assuming you have the income, reserves, capital, and DTI to support this route in addition to market rent being high enough to cover you.

Thanks for the reply. The first property is my primary residence on a FHA loan. I would like to rent out the first home if possible.

I bought my first property last year and am now looking to do a HELOC and buy my second investment property. I donlt have much equity and houses are expensive AF here in Nashville. My question is how do I buy my second property while living in the first one? Do I need to move to an apartment and rent out the first one or just try to find one that is dirt cheap? I am sort of stumped as to what to do next.

STR's aren't going anywhere but there is a downturn in the market (they used to call it a Recession in my day). One of the first things that take a hit during a downturn is travel and of course, that includes Airbnb. In the future, I think it will still be a good opportunity but only for those who buy right and run their STR's like a business and not a cash grab.

I was talking about this topic this morning. If you bought an STR in the last year just to "get in on the action" or "FMO" then you are screwed. I can't imagine paying $2k a month for a 3br 2 bath 1700sqft property that only brings in 3k a month. I can however imagine property bringing in 4k a month and the mortgage is on $900 for a 2/1 500sqft tiny house.

Let me guess that the majority of the "air bnb ready" properties are ugly 2-1 and 3-1 houses.

You won't find anything following the 1% rule in Nashville right now.

This is part of the reason I deactivated my RE license when I saw what was happening. Realtors are supposed to have a fiduciary responsibility to their clients. So many just tell clients what "they need to do" to get a house instead of actually showing them what to do. You know like actually driving out to properties and making offers and not just sending emails. That's unethical in my option and isn't in the client's best interest.

I avoid HOA's like the plague. Even if they allow them today, tomorrow they can ban them and all it takes is one noise complaint.

I am going to disagree with a lot of people here and give my honest option. 

I think we ARE headed for a crash despite stricter lending. When people lose their job and can't get another one due to mass hiring freezes they have to sell or face foreclosure, they don't have a choice. It's the same thing that happened in late 2007.

You have a lot of people who are selling thinking they are going to get top of the market but haven't come to the realization that rates have shot up dramatically.  Also, buyers are going after cheaper properties or just waiting out the market.

If someone can explain how you pay a mortgage you can barely afford with no cash reserves and no steady income then I may change my stance. Because that's about to be the majority of America in the next few months.