I sold my company two years ago and I'm looking for investment opportunities in the real estate space, specifically single-family houses.

This negative equity position is one of many reasons that adding ADUs in a single family zone is not typically a good RE investment.OP whatever you decide to invest in, make sure you do thorough and conservative underwriting. good luck You’re right in that the level of underwriting I presented wasn’t institutional level - but for your average person just starting out, institutional grade analysis often makes the thought of investing overwhelming.

Pardeep,TN is tricky because unless you and your family members are members in the LLC, you won’t be able to qualify for the FONCE (Family Owned Non-corporate Entity) exemption from the TN franchise tax.

I did a 1031 exchange for 2 replacement properties, with sales price 170K and 200K single family homes.

I’m mostly interested in multi family homes (using the Brrr method).

Investment Info:Small multi-family (2-4 units) buy & hold investment.

The single family homes I have are 3 bedroom but the tenant pays for them. 

@Shaun Ortiz providing for the future needs of my family, RE is my retirement planning vehicle of choice.

With current interest rates, and they are at least 1% higher with potentially additional points for non owner occupied property, it is hard to find properties that will allow for positive cash flow after paying the mortgage, if you are looking for money for the down payment from a private lender, those are normally at higher than market and I am not sure it would be possible to pay it off.... please remember you need to take into account that you may not have a tenant for a certain amount of time, a tenant may stop paying rent, or you will have a big ticket item to fix, so I would wait if I were you and save to have enough for the down payment and closing costs and perhaps some money set aside for repairs. you also want to make sure that you have your own emergency fund outside of the money needed for the investment property because life happens ....

I have decided the multi family is the best path forward for my current life situation.