All Forum Posts by: Wesley Thompson

Researching options to fund the renovation of a duplex in Chattanooga, TN. I want to make this situation as beneficial as can be, while also ensuring I'm getting the best terms. Here's a few options I'm considering....

- Personal Credit Card (11% APR and get airline miles with use, current zero balance and max is close to estimate of funds needed for project)

- Conventional Rehab Loan - Lender I've used in the past has current 144-mo @5.74 which is also the lowest payment option

-Hard Money - Higher rate and upfront cost, but might be good to start making those connections and building relationships

Anything else I should consider? I was thinking maybe of using the CC for payment for the miles and then using a loan to pay off the card. That way, I still get the miles and have the lower interest rate. 

If you don't have a team in place, I recommend looking at turn-key companies. Rent to retirement had listed alot of properties around Cleveland and Columbus this year. 

I haven't seen any books, but plenty of You Tube videos. 

@Joe Villeneuve Absolutely! If I was living next door and self-managing, I would be clueless. This is why I cringe sometimes when I hear people talking about self-managing out of the area. That 8-10%/mo makes up for it in cases like that. In fact, I haven't paid the PM anything yet since no rent has been collected. She's even giving me a bit of a discount on the eviction service since it'll be handled for two tenants at the same residence simultaneously. 

@Tom Saysithideth I'm working a plan for a duplex rehab currently with some foundation and serious sub-floor issues and am looking at Michael Cross and Trident Investment Properties as the GC. 

@Cody Gagnon I've been pondering this in Chattanooga as well. Mainly student housing for UTC. My agent says she knows a few people who are doing this because the student housing offered at UTC isn't great for the price. I looked up the price for student housing a few months so if you're interested in going that route you can find it on UTC website and provide a rough framework for what the school charges. 

The Chattanooga Duplex Drama.... while my first investment property provided me with some great vibes...my my my how the turntables! I had high hopes for buy/hold-BRRRR hybrid but now after the first month of the tenants not paying rent, those hopes have been dashed. On top of that, shortly after closing my PM received a call from a city inspector informing us the property was 2 days away from having a lien put on it due to a safety issue caused by a sub-floor problem and is preventing a door from fully opening.

So before we all start to freak out man (insert Jim Brewer meme) we knew the floor was an issue from inspection. However, it's not a fix which can be remedied with a tenant still in place. The lien, that was a surprise. Since it wasn't "fully complete" there was no record of one existing. However the previous owner, agent, and PM never disclosed this bit of information to us. My agent got with her broker as this is not a situation they had ever encountered before. Luckily, my PM knew the inspector and has a good relationship with them. She explained it's under new ownership, we're aware of the issue, and have every intent of fixing it. Thanks to my stellar PM, there is no lien and life goes on. Doesn't appear to be any recourse from the previous seller. But man would I have liked to had that leverage.....

Since both tenants are on month to month and didn't pay their OCT rent, getting them out for the full rehab became the plan and the PM sent notification to vacate. Well, they don't want to. So we're onto eviction. Luckily, that's also another day at the office for my PM. I offered cash for keys but it doesn't look like they want to budge. So be it....

So many times have I heard on the BP podcast you'll learn a lot with your first property. I am....I'm learning just how critical your team is, and how a great one will instantly make an impression. I would be losing my non-existent hair over here in Africa if it wasn't for my team. My All-Stars taking great care of me and doing what needs done with little direction or input on my end. I only hope they enjoy working with me as much as I do with them.

It’s nice to meet you!

Robusta Move Coffee Company isn’t just your average “Joe.” We’re a veteran-owned and operated coffee company that provides roast-to-order coffee from our headquarters in Tennessee.

From one real estate investor to another, I understand that guests want more than a place to stay. They want an unforgettable experience. One thing most of us have in common is our love for a great cup of coffee!

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• We offer roast-to-order. Our beans are NOT stuck on a shelf for years at a time.
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Read about our fun and creative roasts at www.robustamove.com! We even have a sample pack if you want to give Robusta Move a test drive before you stock up for your rental property.

Here’s to hosting (and roasting) like a champ!

Thanks For Your Consideration,

Wes Thompson

Owner, Robusta Move Coffee Company

@Eric Huang one thing to consider, properties within a reasonable distance to UT Chattanooga which you could rent out by the room. @Adrienne Green (my agent and hero!) says the student rooms aren't that great and I looked up the prices and some are over $4k a semester. Might be a good way to get cashflow out of a property where the buy/hold strategy doesn't work. 

@Adam Kuszczak I went a little down the rabbit hole on these a few months ago. Almost all the properties on the street are owned by the same individual. They want 1.2mil for the portfolio. They were under contract, and the buyer came back to them with $450,000. After analyzing, $750,000 wasn't worth it either. They are seriously overpriced for the condition and need alot of maintenance. They could be great properties at the right price, but the seller seriously overvalues them. I wouldn't spend too much more time on them.