All Forum Posts by: Tenzapa Wakombe

Welcome! Sounds like you've got a solid setup—having your brother in Chattanooga as a contractor is a huge advantage. Partnering through an LLC is smart, just be sure to get an operating agreement in place and consult a CPA/attorney to structure things right.

Flipping to start makes sense, but just a heads-up: 1031 exchanges typically apply to long-term holds, not flips. A CPA can help you navigate that.

Tennessee’s no state income tax is great, but LLCs do pay an excise and franchise tax, so factor that into your numbers.

Sounds like you're on the right path—wishing you and your brother the best as you dive in!

Hey, I really resonate with your post—I did not know much about real estate until I became an investment agent. Like you, I’m hungry for more hands-on experience and looking for opportunities to get involved in flips, rentals, or acquisitions alongside someone with more experience.

Just wanted to say I appreciate your mindset and drive—it’s refreshing to see. If you ever want to connect, swap ideas, or even team up to find someone willing to mentor or let us shadow, I’m definitely open to it!

Let’s keep in touch and keep pushing forward. We’ll both get there with the right connections and effort.

Here’s a solid, casual response you could post in reply to that message:

Hey there! Sounds like you’ve already got a good amount of experience under your belt—nice work on those Atlanta flips.

I’m actually based in Tennessee (and diving deeper into the market here), and I’d say it’s definitely worth a look. There are still pockets where the numbers make sense, especially outside the major metros like Nashville and Knoxville. You won’t always hit the 1% rule, but with the right buy, value-add plays are still on the table. The investor community is growing here too, which helps with networking and finding decent contractors—though like everywhere, GCs can still be hit or miss.

I’ve also heard good things about Ohio—markets like Cleveland and Cincinnati are still affordable and investor-friendly, plus there are a lot of turnkey operators up there if that’s something you’d consider.

Managing remotely is always a challenge, but if you build the right team (agent, GC, property manager), it can work. Might be worth a short trip to vet some people in person if you’re serious about a new market.

Hope that helps a bit—happy to chat more about Tennessee if you’re curious!

Hey Grady!

That sounds like an exciting project! Since you’re buying land from family, that’s a great advantage—especially if you’re getting it at a favorable price.

A few things to consider:

• 1 Story vs. 2 Story: A single-story build is often easier for maintenance and accessibility, but a two-story might help maximize your unit count while preserving green space or parking.
• Unit Density: On 2 acres, zoning laws will be the big factor in determining how many total units you can build. You might want to check with local planning and zoning offices to see what’s allowed (or if you need variances).
• Floor Plans: Open floor plans with 3-bed/2-bath layouts (or even 2-bed/2-bath) tend to attract long-term renters and small families. Efficient layouts can help reduce construction costs.
• Landlord Tips: Tenant screening is everything. Setting clear policies from the start will save you headaches later. Also, consider whether you want to self-manage or hire a property manager as you scale.
• Software/Tech: Buildium, AppFolio, RentRedi, even my buddy@Andrew Kubik are great for property management. For accounting, QuickBooks, Stessa, and also my buddy@William Whitley are solid choices. Smart locks and security cameras can also help with tenant management and property safety.

Would love to hear more about your build process as you get started! What stage are you at with the financing and permits?

Hey Aaron

It sounds like you’re on the right track! My first time investor clients were in a similar situation. Since you plan to establish an LLC later, opening a separate bank account now is a good idea to keep your rental income and expenses organized. It’ll make bookkeeping and tax time much easier.

When you do form the LLC, you can transfer ownership of the property to it, but check with a real estate attorney to make sure there are no issues with your lender or title transfer. Some investors also prefer setting up the LLC first to keep everything clean from the start.

Hey Bradley, would love to connect!

Do you have a certain area in Middle Tennessee that you would like to start off investing at? I can give you an idea of what to expect within that market!

I also have recommended lenders for you to use for your convenience, let me know if you have any questions ◡̈ 

Yeah, with a 1031 exchange, you have 45 days from the sale to officially identify your next property, so having options lined up early is key. You don’t necessarily need it under contract right away, but you do need to submit your identified properties in writing within that window. Then, you have 180 days to close. Working with a good 1031 intermediary can help keep everything on track

"Sounds like you're in a great position with your brother's contracting skills and Chattanooga's lower barrier to entry! An LLC is a smart move for liability protection—just be sure to set clear terms in an operating agreement.

Starting with a flip and rolling profits into a 1031 exchange is a solid strategy, just remember the reinvestment requirements. Tennessee has no state income tax, which is a big plus, though looking into local tax implications is wise.

With your brother on the ground, you’ve got a strong advantage, but if you plan to hold rentals, a good property manager will be key. Excited to see how your first deal goes!"

Hey @Ibrahim Konate, It’s great to hear that you’re looking to buy your first rental property at 20—that’s a smart move toward building long-term wealth. Since you're in Tennessee, you're in a great market for real estate investing.

Steps to Get Started:

1️⃣ Build Your Knowledge – Read books like Rich Dad Poor Dad and use resources like BiggerPockets to learn about investing strategies.
2️⃣ Check Your Finances – Aim for at least 3-5% down for an FHA loan or 15-25% down for a conventional loan (depending on the property type).
3️⃣ Get Pre-Approved – Talk to a lender to understand your budget and financing options.
4️⃣ Analyze Deals – Look for properties with good rent-to-price ratios (1% rule if possible) and strong demand. Use tools like Rentometer, Zillow, and MLS listings.
5️⃣ Network with Investors & Agents – Join local real estate meetups, talk to agents, and build a solid team (lender, agent, property manager).
6️⃣ Choose Your Market – Consider Nashville or Chattanooga for affordability, rental demand, and appreciation potential.

Should You Get Your Real Estate License?

If you’re planning to invest full-time, getting your license can help you save on commissions and gain market knowledge. However, it’s not necessary if your focus is strictly buy-and-hold investing—working with a great investor-friendly agent can be just as effective.

If you're serious about finding your first deal, I’d be happy to share some local insights and resources. Let me know how I can help!

You bring up a valid point about tax burden and profitability—both are crucial when deciding where to invest. High-tax states often have higher costs, which can eat into returns, while lower-tax states may offer better cash flow and affordability.

I am in the Middle Tennessee area (Nashville, Chattanooga, and surrounding areas) Tennessee has:

✅ No state income tax – Keeping more of your rental income.
✅ Landlord-friendly laws – Fewer restrictions make property management easier.
✅ Lower property taxes than many high-cost states – Reducing ongoing expenses.
✅ Strong rent-to-price ratios – Ensuring better cash flow potential.

Profitability should always be the deciding factor. If an investment doesn’t yield strong returns due to high taxes or costs, it makes sense to explore more business-friendly markets.