All Forum Posts by: Candy Kimbro

I believe the DTI is around 34%. It is in our names. Have just heard of LLC so not sure if that would be good for us or not. Any tips on how to look at the numbers to see if it works? Im just now realizing our potential with the first investment and had no idea what a great position it put us in to move forward. We have $1500 in cash flow monthly on average and are 3 years in.

We own it 50/50 with my mother so would need to get her on board but dont understand how the numbers would work with that option.

If we buy in 25 we could rent it out to others first bc theya re required to stay in a dorm the first year. If we wait and buy in 26 she would move in and let others rent with her and hopefully cover the mortgage. rent is super expensive there!. My main concern is GETTING financing for it since we have a high debt to income ratio. 

My husband and I are Teachers and Nurses but dream of supplementing our W2 jobs with passive/investment income. 

Fell into a short term vacation property and can't wait to do more investments! We are interested in buying a home or condo for my daughter in Knoxville TN next to either House Hack while she is in college then keep as a long term after. Financing that next deal is our concern as we don't have cash reserves but we do have access to $100,000 equity in our current rental. Any tips appreciated!

We lucked into a rehab project and successfully run a short term rental in Bell Buckle TN. It has approximately $200,000 in equity and currently cash flows about $1500/mo ( we split this cash flow and equity 50/50 with my mother that is my business partner).

We have 3 kids and the oldest is about to go to UTK for college. We are interested in acquiring a property that she can live in starting her sophomore year and hopefully have roommates pay for the mortgage.

Any tips on the best way to finance this? We dont have cash reserves, just equity and cash flow from the one rental. Should we somehow help her make it her property as a first time homebuyer since she is 18 and she has $6000 saved up? Should we buy it her freshman year and let others rent it before her or wait until she can move in? We live 3 hours from Knoxville.

Tia!

Investment Info:

Single-family residence buy & hold investment.

Purchase price: $40,000
Cash invested: $60,000

We rehabbed a Historic home that was sold to us by a neighbor knocking on the door. We tore down half the home and saved 400 sqft, turned into a tiny home short term rental.

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

It was next door to my moms bed and breakfast so we could manage it easily. We love historic homes and its in a small town vacation destination.

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

The home was very run down and a person was living rent free in it. We went to the current owner and said to let us know if he ever wanted to sell it. A year later he knocked on our door and offered it to us.

How did you finance this deal?

We bought it with a HELOC on my mom's primary residence for the first $40k, then hired a contractor for demolition and major renovations, did cosmetics ourselves and used more heloc money totaling $60,000. 1 year later we listed it on VRBO and AIRBNB and refinanced the $100000 into a fixed rate mortgage.

How did you add value to the deal?

Total Rehab

What was the outcome?

Quaint tiny home vacation rental that rents for $175 per night bringing in $2000-$4000 month with fixed and variable expenses ranging from $1500-$2500 month. Cash flow is around $23,000 a year!!

Lessons learned? Challenges?

Keeping a reliable handyman and contractor as he was paid hourly and ended up having to fire him because he was taking advantage of that time. Better to get a job quote than an hourly wage.

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

We used a local bank Wilson Bank and Trust.