All Forum Posts by: Steven Gillmer

Welcome Clint! I also live in Nolensville and am looking to get together with other investors. Maybe we could discuss over a cup of Mama's Java.

I think I am posting this in the right forum. I have been reading as much as I can about BRRRR strategy but one aspect eludes me. How can I protect myself and my personal assets when I have 10 conventional home loans in my name? I understand that banks will not finance in an LLC so I am curious how others are structuring their holdings.

Welcome! I own properties in Memphis which cash flow nicely. Send me a message and I could recommend a Bigger Pockets Member that is involved in turn key properties.

Thanks all. Just a point of clarification, I would absolutely be looking for cash flow on a property here. Just trying to determine if it is worth the increase in sales price to increase my likelihood of getting some icing, I will probably be messaging some of you to get together and talk about this market.

I recently moved from Arlington, TN to Nolensville and I am trying to figure out my best strategy going forward. I currently own two properties in Memphis which cash flow very well when I am not having to evict someone. I cannot, however, expect that I will experience much appreciation. I could pony up and purchase something here in the Nashville area that has a higher likelihood of appreciating over time, but will cost me two arms and a leg. The market is so hot right now I am also just a bit nervous about the future. I would also like to implement the BRRRR strategy on m next property and may have a better chance of a higher ARV in Nashville than Memphis.

So, anybody have any thoughts or person experience that could help me focus?

I used to live in Arlington, TN, just outside of Memphis and I use Superior Property Management to manage my two properties there.  They helped me work through a couple of evictions and were able get them re-rented quickly.  They communicate well and I was able to build a relationship with them since we lived in the same small town.  You can find their website by searching the name.  They charge a $200 conversion fee and then a fixed $85/mo.  They also charge 15% for any maintenance they facilitate and first month's rent when they place a new tenant.

Well, assuming your numbers are correct, you have an annual cash flow of $9,960 yet only paying taxes on $4,140. And that $4,140? It is only taxed at 20%. Therefore, you pay much less in taxes on money in your pocket with this scenario than if you earned it from your job.

I received notification from my property manager that the tenant called on the 11th of the month, after not having paid this months rent, and informed them that she had filed for chapter 13 bankruptcy a couple of days prior.

What does that mean for me?  I have not read the tenant agreement yet but I have to believe that just because she filed for chapter 13, that does not mean she gets to live for free.

Thoughts?

I agree. I have a specific minimum cash on cash return. If the deal does not deliver that number, I move on. Your case is not that bad though because the tenant is paying your debt and you still have money in your pocket. In there long run, you should be able to increase the rent and see appreciation in your property which will yield an even larger return. 

For your next deal, find a deal that delivers a higher cash flow or don't do it. Use your network to help identify these properties because it is much easier than going at it alone. 

Curt, that is great info. I have a follow up question on the DTI that lenders may use. In my situation, the only debt I have is my primary mortgage and two investment mortgages. No credit card debt or auto loans etc. Will they apply an overall DTI number or will they focus on the mortgage DTI (I have heard banks like to keep you under 28%). I am sure that each bank will vary but I was wondering if you had any knowledge on what the average bank would do.