All Forum Posts by: Luke Pierce

Can I help with any introductions to GCs to help you evaluate?

Curiously, are you permitted for short-term rentals?  What part of downtown?

@John Knisely, thanks for the welcome! Always good to connect with other Penn Staters. Would love to learn about what you’re up to in the Philly area.

@Michael S., Franklin’s a great area.  Much better schools in Williamson than Davidson county.  Are you active in Huntsville?  I’ve been eying the market and would love to connect with people down there.

@Cole Welch I appreciate the feedback, and the vote. I'll double back and re-evaluate something at $229k ARV and $1250/unit rent.

I’d love to get more practice at rehab estimation, so it becomes a little more fluid for me.  This detail took a bit of time and research for me.

Do you have any resources you’ve used to help with rehab estimation?  

@Brent Coombs Thanks for chiming in as well.  To you, I’d ask is there merit in renovating a home to a higher standard to make sure you can garner highest rents?  Was there something specific in the renovations you feel is worth revisiting?

@James Martin could you please share that map with me as well?

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*This link comes directly from our calculators, based on information input by the member who posted.

I am in the process of looking for a second property, and am currently exploring some ideas in small multifamily properties.  Just doing a little deal analysis practice for multifamily units, and would love y’alls thoughts.

6-BR, 2-Bath, 2100 square foot duplex in an area of Nashville that is beginning to experience a higher volume of development.  The property needs A LOT of TLC, detailed out below.

Purchase Price: $129,000.00
Renovations: $63,120
Monthly Rents: $1350.00 per unit, tenant also pays electric, sewer/water

I could certainly use some practice in estimating repair costs, so here are my assumptions for repairs that will be required based on the photos available on MLS. I would love you all to critique these as well.

I’m not in the least bit handy, and assume that I will need a contractor for all of these—no sweat equity in this deal.

- Sheetrock to repair some holes in the wall ($800)

- Some decent new flooring (2100 square feet of wood laminate flooring installed, $5.50 per square foot = $11,500 total)

- Appliances — washer, dryer, refrigerator, stove, dishwasher, water heaters, and microwave for each unit ($11,900 total)

- Washer and Dryer ($1500 per unit, $3,000 total)

- Refrigerator ($1300 per unit, $2,600 total)

- Stove ($750 per unit, $1,500 total)

- Dishwasher ($500 per unit, $1,000 total)

- Water Heat ($1000 per unit, $2,000 total)

- Microwave ($300 per unit, $600 total)

- New kitchen cabinets and counter tops in both units ($4000 per unit, $8,000 total)

- Framing of closet space for washer dryer plus shelves and door ($2,000 per unit, $4,000 total)

- Bathroom remodel in both units ($9,900 total)

- 2-sink cabinet / vanity ($800 per unit, $1,600 total)

- 2 sinks ($400 per unit, $800 total)

- Countertops ($400 per unit, $800 total)

- Mirrors / Medicine Cabinets ($500 per unit, $1,000 total)

- Framing and installation of small linens closet plus door ($800 per unit, $1,600 total)

- New toilets ($200 per unit, $400 total)

- New tubs ($1200 per unit, $2400 total)

- Lighting and Fixtures ($650 per unit, $1300 total)

- Exterior landscaping, some patching of the yard, trimming of trees, and a few beds out front ($2,000)

- New interior doors ($900 per unit, $1,800 total)

- New exterior doors ($800 per door, $1,600 total)

- New mailboxes and house numbers ($500 per unit, $1,000 total)

- Exterior painting (minimal with brick construction) ($1,000 total)

- Interior patining ($3,000 per unit, $6,000 total)

- New exterior shutters ($300 per unit, $600 total)

- Interior window treatments ($300 per window, $3,000 total)

On the rent side, there are few rents in the area at $1250. I think I can push this up to $1350. I would absolutely engage a property manager.  Assuming larger capex and maintenance costs.

I have access to hard money cash for a purchase and renovation of the property—about $196k of an outlay.  If I can get the home appraised at $240k+, I would be able to finance the repayment of hard money principal, and have a property cash flowing.

How is my thinking on this deal?

@Kyle Lauriano Welcome! Having grown up in Doylestown, I know it’s a great place to live. Lehigh Valley seems like a great place to be investing. Let us know how you find it!

@Michael Matter Welcome! Would love to hear how you’re finding the market in Indianapolis. I have a lot of family in the area, and the possibility of investing there is intriguing.

Hey everyone, My name is Luke Pierce, and I’m excited to join the community here on BiggerPockets.  After 3 months of lurking around, today I feel it’s time to jump into the game. I’m a 30-year old music manager at a full service personal management company for recording and performing artists.  You can check out some of the artists we work with on our website.  I actually come from a finance background, having studied economics and finance at Penn State, and worked as an analyst for a small advisory firm in Manhattan Beach, CA, prior to starting my career in music. In 2016, after nearly 6 years in Los Angeles, I relocated myself to Nashville to be closer to the business of country and Americana music I was developing, to be closer to family (some in Indianapolis, some in Chicago), and to give myself opportunities to build wealth faster.  As you can imagine, the cost of living is substantially less in Nashville than Los Angeles, allowing me to save more money. After about 18 months of living in Nashville, I closed on my first property in Nashville — a home on Alice Street (zip 37218) — that I bought with a combination of my money and a hard money loan from my father.  I had intended on tearing the house down and building a horizontal property regime (HPR) 2-home with shared wall, and either selling one unit and living in the other, or long-term renting one unit and living in the other.  I made that purchase with some cursory glances of posts on BiggerPockets, which I found by searching through the Podcast app for real estate podcasts.  There were some very helpful resources that have helped me evaluate the deal, and I’m still very much learning through that process.   The past 3 months of working on that project has definitely scratched an intellectual itch for me, and opened my eyes to money-making opportunities.  Learning about real estate, and how the business works is an exciting challenge, and one that I hope can yield long-term wealth. While I don’t have an investment thesis pinned up, I love the idea of real estate generating passive income.  While I’ve been very lucky to experience success in the music business, I know that at the end of the day the success of a song and therefore my client could be a crapshoot.  And while I love my job, my business partner and team, my clients, and the business itself... the music business is very a much full-contact sport.  It’s a 24-7 service business that you have to enjoy, or otherwise you’d never survive.  So the idea of diversifying my income on a monthly basis would give me peace of mind that if something in the future might change — a client takes a break and decides not to work for a year or fires me (which I hope never happens as we do great work) — that I’d be protected.  In some way, I think it’ll also free me up to take more creative chances in my music business: I could stomach more creative risk. I’m sure I’ll be jumping into the forums and posting more here.  If you have any advice, I would love to hear it.  And if you’re in Music City USA, I hope we get the chance to meet up and talk about this exciting business we’ve chosen to be in. Luke Pierce Nashville, TN