All Forum Posts by: Sean Davidson

When you say zero lot line, do you mean attached? Or do you mean the code that allows you to build all the way to the lot line if you don't put windows on that side of the house?

Either way, I always walk away from flood zone deals in green hills. Some people may not care, but it reduces the buyer pool significantly enough to not be worth the trouble. 564 is also too much for a standard tear down and build two.. that might be doable but it isn't a deal. Just my 2 cents. 

Welcome to BP! I've got some hunting land down in Maury County so that area is near and dear to me. 

As for your investing, are you averse to debt in all forms? It seems like you could grow your business quite a bit if you were willing to even put some light leverage on your existing properties.

Hey Peter,

I haven't BRRRRd in a few years, but if I recall correctly, they were willing to do 80% of my costs immediately (costs can include the fees for your time, and my time is precious at $100/hr - not sure how hard different banks scrutinize that number though). If you wait a year, they will do 80% of appraisal value. I've never been a stickler for interest rates, but they were in the 5-6% range for both of those, 5 year loans with 20 year amortizations.

Welcome, Soto! Nashville is a fun city with a lot of opportunity, but there are plenty of pitfalls out there. A tip to start, listen to all of the podcasts and figure out what you want to do in real estate. You could use that initial capital to buy a single buy and hold rental and then get a day job, invest it in marketing and try to build a wholesaling business, or 1,000 other different ways to invest in real estate. Talk to people who do all of them to get an idea of what the different investment strategies/jobs are like, then learn all about it and take the leap. Best of luck!

I struggle with the same decision - keep my high paying day job or go into real estate full time. The way I view it, you've been given a gift by your employer that you should take advantage of. Work hard at it for 3 months and then take a step back and consider whether you want to spend the rest of your working life that way. If not, go get another corporate job and you were probably able to grow your portfolio a bit. If it is going great, then roll with it. That is how I would approach it.

Hey Adam,

That price point might be a little low for what you described, but you may be able to find something in an area that hasn't fully gentrified yet. If you have questions about specific neighborhoods, feel free to ask. 

Sean

That is a tiny lot, so you have very limited development potential. I would focus on buy and hold long term. Others on here can give better advice in that regard (I ALWAYS over improve the property.. it's a problem...)

By readdress I just mean take a look at the question again later in light of the market changes. 

Welcome to BP! We do some development in that area, so I'll try to help if I can. First, what is your lot potential? Can you build two detached homes with current zoning? If so, a developer is only going to give you pad value and could care less about the structure. A good rough way to determine pad values is to take the sales price for a new home and divide by 5. If new houses sell for 400k, I'll want to pay around 80k for each buildable pad. That being said, that area has already seen most of its appreciation. The initial jump from near worthless to 200k is where people make all of their money overnight. The climb up from here in that neighborhood is likely to be a bit slower now. If you are aiming for buy and hold, that's one of the few neighborhoods in town where you can get over 1%. A nicer neighborhood will be a much thinner deal with more capital needed. My personal preference and what we did in Hadley Washington is to renovate it cheaply and readdress in a few years as the city grows. Let me know if there is anything else I can help with. 

Welcome, Eric. Let me know if you have any questions or need anyone to help you vet deals as you get started! You will learn a lot in the beginning, and some of those lessons will be unpleasant. Don't get discouraged and remember that you always pay for education, but it is worth it in the end.

@Rhea Jackson

You will love Williamson County based on that description. I live in Franklin and it is 10 minutes to Cool Springs (mall and commercial area with every store imaginable) and you are just 30 minutes from Downtown which is not so much shopping, but great restaurants and a lot of events. The schools here are incredible, as well. Generally Brentwood is going to be pricier and have more traffic because of the closer proximity to town, but where I live in Franklin the traffic is never really bad at all, especially compared to Nashville. You learn pretty quickly how to get around on the roads that wind through the beautiful hills and avoid the masses of humanity in Maryland Farms and Cool Springs.