All Forum Posts by: Travis Jacobs

I'm confused on your response. Are you talking about me directly? The U.S. government? Or individuals?

About half of Mortgage backed securities are owned by the U.S. Government already so I guess you can say in a sense they already own half of all properties across America with a loan on it. Any central planned program ends badly. This would be one of them. If prices do rise it would most likely be temporary and then stagnate/decline again. By a tax stance they own all lands where homes sit/don't sit on as well if those taxes aren't paid, this includes farm land.

I don't know the market or conditions per say, but waiving them to pay your closing costs is normal at least lately. Unless you have a dead market which sounds like you don't. The best way I found is to make an offer immediately and be the first or one of the first with a clean offer. Doesn't have to be overpriced per say, or be the last strong offer. Your realtor should know how to write an offer to get accepted. If you can cash flow $100 per door after you leave the househack it's a great start. Not perfect or great but it gets the ball rolling. I would make sure to have reserves left over and be comfortable with the mortgage payment if you had to pay it in full by yourself. Don't feel pressured but I would get a great idea of what to offer. Maybe do your own comps of the areas you want to invest in. Then see what the potential househacks sell for in that area. Can't grow if you never get started! Not saying you should've done that deal, but it's best to be proactive and persistent!

Hope you find your way here to Chattanooga! Depending on your goals or financial situation you could always buy a multi-family property and live in one unit to get started. Or do a live and flip to save on costs. Both strategies pay off well if done right and can get you started a lot easier. I moved here in November from Las Vegas, NV.

 There are more than a few large employers here but the main ones are probably VW, hospitals, courier services like Usps, fedex, Ups etc. Utility companies and Chattanooga has a great Gig internet service that is starting to attract more businesses. We have some tech but not enough yet.

Chattanooga has a strong rental market right now, and by your thought process I believe ares like Hixson/Red Bank or Ooltewah/East Brainerd would be better suited for you. Possibly Harrison too. Contractors are backed up right now so it's not a bad place per say here right now. I haven't lived in Knoxville area yet but plan to in the future. I see long term growth in Chattanooga and Knoxville area, and Nashville is too saturated for me. Clarksville may perform a lot better and is growing fast.

Tennessee is now completely phasing out the hall tax so it may come onto the radar more as being a total "tax free state." Forgot to mention that. 

Real estate is local. Some markets will get hit harder than others and some are actually performing bad right now, believe it or not. But overall in the U.S. we are in a real estate bubble, but that doesn't mean it will "pop" soon. Remember, real estate is a hedge against inflation. Compound that with low interest rates, inflation and pent up demand from no inventory, we have an exacerbated problem. Not to mention a high volume of people leaving high taxed states or expensive states into cheaper cost of living states. Larger cities may get hit harder in the short term, or what I call cyclical markets. If interest rates rise too fast and the market gets saturated (which it may this year or next) you will see declining prices gradually over the next few years once that happens. That's what I see and some other macro economists. 

I can't give info on the commercial side here but I am in Chattanooga now. I plan to buy commerical multi family properties in East TN within 3 years. The rental market is strong here as in most areas like Memphis, Nashville, and others. Florida is a hot spot for new out of state residents and property values arent inflated as much in some areas such as Jacksonville. I would assume Arizona is expensive right now and has state tax which I believe will go higher. TN and FL have no state taxes and less regulation? Just throwing Ideas I hear from investors I listen to and have learned myself. Tennessee is one of the most fiscally responsible states, and I see long term growth here for those who are patient. (East TN and Memphis)

First investments can be a lesson or an opportunity at times. I wouldn't let that deter you from future investments, just take this as a learning step and prepare better! A great way is to have an exit strategy going in. "Can I turn this into short term rental?" "Can I flip this if it doesn't cash flow?" "Should I rent by the room?" Those are some exit strategies. On multi family I am ok with $100 cash flow per door after expenses or "reserves". Property should pay for itself always. Single family homes I would personally do $200 per home after reserves are met. It also depends what kind of market you're in. Cyclical, hybrid or linear market. Rents and property values fluctuate. But the investment should make sense at purchase. I wouldn't expect greater than what you're getting. Anything better is a plus! Best of luck.