All Forum Posts by: Brooks Nicholson

Thanks for the responses and I apologize for taking so long to get back to everybody.  @Marcus B Hsu, the rental market recently has exploded and I am seeing up to $2,200 per month for the unit I have.  It is a 4 Bedroom 3 Bathroom home of a little over 2,200 SF.  I penciled my numbers for only $1,900 when I began this project and it has been a great outcome so far.  

Hello Everybody,

I am currently helping a close friend purchase property in the Mount Juliet and Old Hickory parts of Tennessee.  I am having a difficult time making the numbers work for any property that is coming to the market.  It seems that the purchase prices of these homes is outweighing the rental potential.  Are any other Tennessee Investors seeing the same thing?  Any and all opinions is appreciated!  (We also already have an agent / lender in place)

Thanks!

Brooks Nicholson

Investment Info:

Single-family residence buy & hold investment in Buckeye.

Purchase price: $265,000
Cash invested: $60,000

Purchased this home and it needs a little bit of work. Estimated around $15,000. Needs new interior paint, new carpet and updated kitchen countertop and appliances.

What made you interested in investing in this type of deal?

I did a significant amount of research about different areas in AZ then went and visited. Discovered how much growth is actually going on in the areas around Phoenix. Appreciation rates are also high and there is a large number of renters for the growing areas.

How did you find this deal and how did you negotiate it?

Zillow - Negotiated the price down $10,000 due to the work that needed to be done in the home.

How did you finance this deal?

Conventional Financing - 20% down.

How did you add value to the deal?

I will be doing a portion of the renovation myself which will lower construction costs and can allow for a higher return.

Lessons learned? Challenges?

Challenges: Difficult to manage property renovations from a different state. Had to go there to see the extent of what needed to be done and point out different problems that I wanted to address.

Did you work with any real estate professionals (agents, lenders, etc.) that you'd recommend to others?

I am a Realtor myself and I did not have a good experience with the agent we worked with in AZ. The $ amount is so low there so the experience and level of care is different than it is in California.

All great points, thank you for the advice.  

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Hey Hunter,

It looks like you have your priorities in order and that is great to see!  I completely agree with what you are saying.  If you surround yourself with people that will push you in a good direction, you will see results.  Wherever you are, I would suggest reaching out to professionals in your area and try to meet them.  For me, I am meeting with 3 other BiggerPockets members in my area this next week!  From there you will be able to ask them all of the questions you have.

Good Luck!