All Forum Posts by: Stephen Parker

Hey @Otis Sanders - 

My business partner, Randy, was the contractor on this job. He is with Broderick Builders and handles the rehab work on our projects. You can reach him via Broderick at broderick builders dot com or (615) 385-3210. Tell him I sent you! - Stephen 

I think QRP is Qualified Retirement Plan. Another option may be to borrow some private money from family or friends. Literally just a private money loan deal but from a friend or family member who knows you and trusts you...Get an attorney to write up a simple interest-only loan deal and pay regular payments on the 40K until you sell. I do this sometimes for folks who have borrowed from me to acquire a property and need to rehab it after the fact. Also if you are a member of a local REI group, go to a meeting and tell people you need a small rehab loan you'll probably get someone who will come up to you after the meeting...

Investment Info:

Single-family residence buy & hold investment.

Purchase price: $336,500
Cash invested: $20,000

Single family home in E Nashville. Purchased from owner and rented to existing tenant until end of 2022. Rehabbed and added bathroom plus updated throughout winter of 2023 to make rent ready for Spring 2023. Will rent long term and add DADU in rear (large lot with 2 streets and alley access) or rebuild with duplex or triplex in the future depending on cashflow.

What made you interested in investing in this type of deal?

Purchased in 2021 at a 2018 price due to existing lease purchase agreement. Minor rehab will bring value up in a rapidly-gentrifying area. Will rent and use cashflow to fund a DADU build in the back after a while.

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

My business partner had a personal relationship with the former tenant.

How did you finance this deal?

I purchased in cash and our business now pays me a monthly note.

How did you add value to the deal?

Gutted the outdated main bathroom and added a 1/2 bath to a primary bedroom. Patched and painted all interior and updated fixtures. Added flooring in many rooms and just fixed a lot of small issues with an 80 year old home.

What was the outcome?

Will rent for double what it was going for when we purchased. That cashflow will be held in operations acct to fund a DADU or an eventual duplex or triplex in place of the home. We are keeping options open to see what the neighborhood needs and what code changes will allow for in the future.

Did you work with any real estate professionals (agents, lenders, etc.) that you'd recommend to others?

I am a Realtor and I funded the cash purchase.

This reads a lot like my current situation and I'll tell you what I've done so far. You may consider going through this once with an attorney. You do not have to; it's easy enough to do on your own with some time and trial and error. But dep on where you are and how much time you have and how savvy this tenant is, it may be worth several hundred dollars to do it right and learn. Here's my (similar) story: Habitual late payer, usually finds a repair needed, withholds payment, threatens to call codes, has added another tenant to the unit without notification, a HUGE pain in the butt to the neighbors... (We inherited this guy and his mother when we bought the property. Now his girlfriend lives there too and it is just a total gong show...) We were prepared to evict a few months back when a local church stepped up and actually paid his back rent for Nov AND his next rent check for December to get him current. (Note: I'm not too good to take money from Jesus -- even at Christmas time). He was to attend some work counseling at the church and they would've paid his Feb rent too, but he flaked on them (shocking!) so the church didn't pay and the "we'll have the rent soon" stories started immediately. On Jan 10th (this is the grace period we give this particular set of properties) he didn't have Jan rent. So on the 14th, I sent a 14-day PAY OR QUIT notice. He threatened us for a few days after he received the letter then cooled off and said we'd have the full rent on Feb 1 (today). We know good and well he won't have it when my business partner goes out there today (and even if he does, he won't have Feb rent in the next 10 days and, really, it's long past time and he just needs to GO). But the thing is this: The 14 day pay or quit means pay in 14 days or, if you don't pay, you then have to vacate 16 days after that (30 days total 14+16). So we delivered the notice on the 14th, so he had until the 28th to pay. He didn't. So now (today) he is on day 4 of the 16 days to vacate. If he doesn't vacate, our attorney is locked and loaded to request a detainer warrant with the court. When that happens, the process here in TN is like this (this is not legal advise and may note be complete and here in TN the process varies by county population. These are just notes from my attorney as he went through the process on the phone, do your own due diligence:) We gave him 14 days to cure the problem aka pay the rent due. If he does not perform, he has 16 additional days (30 total) to vacate. If he does not, our attorney files a detainer warrant with the court. The courts will then notify the tenant of a court date at least 6 days in the future. The tenant can come to court and plead his case. If he doesn't show up, we get a judgement by default (we will definitely be there). If he shows and the court agrees with us, the court will tell him he has 10 days to vacate. He can also appeal during this 10 days to drag it out further. If he does not vacate, we ask the sheriff to physically put him and his belongings out. Although I am not happy about paying at least $250 (if it's easy and he doesn't show up to court) and as much as $750 -- plus several court, filing, and sheriff fees -- this is one where the education I get through observation is worth it to me. I am not Jay Z or Jeff Bezos, but I can make up that $750 in no time. For me, it is quite honestly worth the money to save my mental energy and work on acquiring another property or find ways to add value to my existing properties. Much like the demo or renovations at some of my properties, "just because I can do something, or know how to do something, doesn't means I *should* do it." Keep the thread updated and let me know how you proceed and how it turns out.   

Investment Info:

Small multi-family (2-4 units) buy & hold investment in Nashville.

Purchase price: $323,000
Cash invested: $10,000

Duplex BRRRR: Bought duplex, rehabbing it to rent, then refinancing.

What made you interested in investing in this type of deal?

Two properties in one address, on a concrete slab with brick construction.

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

Was an MLS deal and I offered slightly above ask price, all cash, no contingencies, 14 day close.

How did you finance this deal?

Cash to purchase. Will refi after rehab is complete and renters are in place.

How did you add value to the deal?

Completely rehabbed interior: Full kitchen gut, new flooring throughout. Bathrooms got a 50% rehab. Cosmetic and fixture updates through both units.

What was the outcome?

At the end of the rehab stage

Lessons learned? Challenges?

We had a break-in one night where a water heater and lighting fixture was stolen from one side. So I'm thinking more about jobsite security.

Did you work with any real estate professionals (agents, lenders, etc.) that you'd recommend to others?

I was the Realtor on this deal and I re-invested my commission toward rehab expenses.

Investment Info:

Mobile home fix & flip investment.

Purchase price: $55,000
Cash invested: $75,000

Small mobile home park. 1 unit gut rehab, 1 unit substantial interior rehab, lot and land improvements.

What made you interested in investing in this type of deal?

Great ROI on

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

Investment partner found and contacted previous owner.

How did you finance this deal?

Cash purchase

How did you add value to the deal?

Private money loan for purchase and repairs

What was the outcome?

The park is coming along nicely and people are stopping by to ask about availability. Current tenants are also feeling better about the park.

Did you work with any real estate professionals (agents, lenders, etc.) that you'd recommend to others?

I am a Realtor as is my investment partner.

@Alex Ferraro Hi Alex and other Nashville BPers, I’m a Nashville native and Realtor / investor. (I did live in Chicagoland [West Loop and Oak Park] for 7 yrs before coming home in 2010). Always down to talk to other investors or anyone looking to buy, sell, or invest. Lots of growth here and there are many strong areas that are still ripe for the picking. I’ll keep up with this thread to see what pans out, but feel free to reach out. I’m also on Insta @nashvillesparker

-Stephen