All Forum Posts by: Cory King

i know of a few different home builders if that's what you're looking for. I know there's a local meetup of them as well each month.

If you're in the market to buy or sell right now it's helpful to know what kind of market we're working in locally. 

Here's a quick summary:

East Tennessee home sales saw a 6.3% increase from the previous month but were down 6.7% from a year ago. The median sale price rose to $350,000, reflecting a substantial 10.8% increase from the previous year.

Total housing inventory showed a notable 19.2% increase from a year ago which is much needed.

Half of the homes sold were under contract in 23 days or less, a slight increase from the previous month but a decrease from a year ago.

For sellers, 43.5% of homes sold for the asking price or above, with 21.5% selling for more than the asking price. Notably, 9% sold for at least $10,000 over asking, and 3.1% sold for at least $25,000 over asking.

The sale-to-list price ratio declined to 97.6%, down from 97.7% the previous month.

If you want to dive deeper into the numbers around a specific home or have any questions I'm always happy to nerd out

Depends on your circumstances and goals. House hacking for a bit of added cash flow without moving?

Based on that math yes, you'd clear a couple hundred dollars after all debts and expenses, not the worst spot to be if you're not necessarily needing the cashflow/trying to live off of it, but instead are focusing on playing the long game. 

Knoxville has a lot of runway for growth and by picking up 1 each year or 2 is a solid long term play. 

 Lease option? Seller finance? Surely you'll get at leaset 1K a month. There's not much in or around Knoxville that's renting for less that $1k/mo. 

Recently the 2024 forecast report by east tn realtors was released for East Tennessee Area. Some solid insights as to how we've grown over the last few years as well a as a peek into the future. Wanted to share for anyone who might be interested.

https://www.etnrealtors.com/2024/02/01/2024-forecast-report/

Great info. Credit to 

Hancen Sale

Government Affairs and Policy Director

 Sent you a PM. Happy to chat about it

@Patrick Goswitz Depends on the contractor. All of my work is a material plus labor type of payments so I'm not paying a contractor a premium for buying the materials. Some will float the cost themselves, but you've gotta also be quick to pay them draws on time so they can pay their guys and keep it going. 

Interesting call. Would really have to weigh out what you'd do with the cash if you just did a cash out refi vs interest on heloc. Agree with the idea of 50% cashout refi is a solid chunk to get going plus ensure some solid cashflow too. If the asset is in a still growing area of town you'll likely still keep increasing strong equity. Local bank will likely give the best rate for both. If you're in Knoxville I can refer a few that I work with. Either way you've got options to scale. Cheers to ya.

Quote from @AJ Exner:

Quote from @Cory King:

Investment Info:

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

Purchase price: $185,000
Cash invested: $55,000

Contributors:
Gregory Crane

Sourced on the MLS. Partnered with a member of our local investor community & BP member who fronted the down payment on the private money loan. I cover insurance and utilities. We hired a local GC to manage the rehab which is largely surface level outside of some bigger cap ex items like roof, windows, hvac. Thankfully those are a once in 20 year items so we should be clear after that. Duplex was built in 1997 so newer materials used helps keep from other big updates from being done. ARV looks to be around $325k and we expect each side to rent for $1500/mo range. Planning to BRRRR this and hold.

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

Growing area of town where new developments are headed and prices are still below the median for the area w/ a 10% growth upside in the short term.

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

Sourced on the MLS. Being able to offer cash aka hard money made things easier to win seller over

How did you finance this deal?

Hard money loan

How did you add value to the deal?

New roof, windows and surface level updates throughout

What was the outcome?

In progress

Lessons learned? Challenges?

Opening yourself up to partnerships unlocks more opportunities. Leaning on each others strengths goes a long way. Trust is huge. Don't let anyone tell you that you can't find deals on the MLS.

Congrats! Looks like a great opportunity.

What are you thinking on the back end for financing? I don't have clients in Knoxville in particular, and I assume with it being a duplex that the cash flow will be good even with a healthy ARV, but I am intrigued by your thoughts and early calculations.

Hopefully the ARV comes back healthy and you've got a good opportunity to cash flow and grow!

Thanks for the well wishes. Planning to refinance. Should be a full BRRRR w/ a lil extra. Reviewing some options now as we're about 2 weeks out from completion and in the process of leasing. Evaluating conventional vs DSCR loans. $325k ARV projection

have you tried to contact the owner directly? truepeoplesearch.com is a pretty good resource