Live-in flip with family in Nashville??

Question

Hi all. As I'm entering this amazingly sophisticated, yet simple journey of REI, the best strategy I've come up with my lender is the following: refinance my parent's primary home (will get about 100k back), fix it up with some of the refi money (rough estimate of about 30k, but I've never rehabbed before so its a really rough estimate), Rent out the primary SFR, use the rest on a downpayment for another home that I would like to BRRRR and place my family (we are 4) in a multifamily house with separate units (with one other family member in another unit).

Of course, as we live there we will rent out the other units. Assuming I pick the right location, and run all the numbers correctly will this still work? I also can't seem to find a single property in Nashville whose multifamily has separate units. If I can't find separate units, what's the best course of action to take? Thanks in advance.

Luke Carl · Answer

@Peter Shafik so those properties on realtor.com are duplexes or triplexes. It’s probably a duplex and each unit has 3 bedrooms. Or if it says 8 bedrooms it could be a quad with 2 bedrooms per unit. They’re all under one roof but there are separate entrances and separate meters. It’s like a small apartment building. Check LoopNet for listings of bigger buildings. You’ve got a long way to go but that’s ok just keep asking questions! Also I don’t think many will dissagree that it’s not likely you’ll make a buck in Nashville. It’s been done for a few years.

Steve Frye · Answer

Absolutey listen to Luc and Avery! Years of great advice with both of them.

Grant Rothenburger · Answer

Sounds better for you to get a MF cash-flowing, but idk your whole situation so I'm sure you'll do what's best for the family!

Roemeo Barnette · Answer

@Peter Shafik Follow up on what you are being advised on by Lucas and Avery I haven’t worked with them yet, but they are very reputable. With that being said when you are analyzing properties that you are considering to buy check the zoning of the property you can find that in the city records. A lot of homes that you described could be duplexes or quads, but again check to see what the property is considered by its zoning it plays a huge factor when it comes to property/city taxes. Best of Luck !

Peter Shafik · Answer

@Grant Rothenburger I was going to, but it seems plans have changed. For now the plan is to continue living with my family in our primary, and letting a family member either live in one unit, or just getting the multi to cashflow, while potentially getting a single family with a furnished basement for the family member.

Grant Rothenburger · Answer

@Peter Shafik

Definitely get a multifamily for this. I did a live in flip in a single family and it was a mess. I didn't have a family to worry about. But you're wanting to live in a unit while working on a different unit I assume?

Peter Shafik · Answer

@Elyse Wiser I don't have an answer for you yet. I would need to explore more options just to find out. I will message you soon. Thanks so much for looking out!

Peter Shafik · Answer

@Roemeo Barnette For sure! I just put that in my checklist when looking for properties. Thanks so much, and best of luck to you as well!

Peter Shafik · Answer

@Lucas Carl That's pretty insane. I did not know that. I will definitely check Loopnet! A long way to go only means more adventure. I look forward to focusing on the process more than anything. Your encouragement means a lot! Thanks, Lucas.

Elyse Wiser · Answer

@Peter Shafik Would you be open to a single family home that has a basement apartment with separate entrance that you could rent to your family member? I see that arrangement quite a bit with either a basement or guest house.

Live-in flip with family in Nashville??

Live-in flip with family in Nashville??

Most Popular Reply

16 Replies