All Forum Posts by: Eric Shadle

Hi, @Damon Gainey I am actually trying to build a team in Knoxville for two reasons. The first reason is that I have family in that area and the second reason is that properties are much more affordable than they are here in California. The property I am evaluating would require a complete gut renovation and probably a roof.

Do you know of any good agents or property managers in Knoxville?

Thanks, @Ari Hadar, I saw that and I tried using it but it basically just links to Home Advisor. I'm sure I can find quality people there but I much rather try to find those people through networking.

Hi guys, I am looking for a contractor in the Knoxville area. Specifically, I am looking for someone in the Oak Ridge area. Do you know anyone who could help a BRRRR investor?

@Brant Jones, that's great! I am scheduled to work on the 16th but I'll see what I can do. If not this month then next!

Congratulations on the duplex! Tenant screening is, in my opinion, the most important step in maintaining both your property and your sanity. 

When I am trying to fill my property I meet the prospective tenant at the property in person. I do showings by appointment only so that I can limit the occupancy in the property. I also provide hand sanitizer and shoe covers for all visitors. I give them the nickel tour and then give them a few minutes to wander. I outline all the requirements and expectations as to who is responsible for what. If I like them and they meet the criteria I ask them to apply online. This is when I get references, credit score, and background check. I only invite someone to apply if I think I want to rent to them, otherwise I think it is an unnecessary expense for the prospective tenant. If the background check and credit check come back clean, then I approve the tenant and walk them through setting up online payments. I do not take the listing down until I receive the security deposit. I collect the first month's rent the day they move in.

In my area, I am comfortable working with the existing tenant to arrange showings before they move out. By doing it this way I am able to limit my vacancy to just a couple of days.

Good luck!

Are there any plans to have another meetup? I know COVID makes things tough but I would love to meet some of you!

Wow! That is a lot of listening! I can't blame you though because I learn something new in every episode I listen to. Imposter syndrome is a real thing, for sure. However, in my experience, it is almost always an unfounded fear. Keep your goals in focus and just focus on what you know (or think) is right. Don't worry too much about the peanut gallery. Good luck!

Investment Info:

Single-family residence buy & hold investment.

Purchase price: $299,500
Cash invested: $124,500

We bought this house as a 3 bed, 1 bath house in late 2016. The house was built in 1926 and needed extensive work but the price seemed right and it allowed us to stop house-hacking our duplex. We reconfigured the layout to add a bathroom and ended up with a class A property with moderate cash flow.

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

I like the idea of living in a property for two years and then renting it out because it allows us to get better financing terms and has tax advantages if we ever sell it.

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

I found this deal on the MLS. It had been sitting for 165 days so the seller was willing to come down in price.

How did you finance this deal?

Traditional 30 year fixed

How did you add value to the deal?

I found the deal and coordinated all the contractors. In addition, I did a substantial amount of the work myself to add value to the property.

Lessons learned? Challenges?

I need to get better at finding deals because there was not much meat on the bone for this one. However, the house worked really well for my family for two years and now earns us a steady income.

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

Agent - MaryBeth Cochran
Electrician - Emil Catinean

I second Craig and Sons.

Wow, Elizabeth! Thank you for this information!  I will continue to look and expand my search.  

James, I am not from a small town.  I live in the Inland Empire here in SoCal where the typical property is too expensive to get a really good return.  Granted, there are deals to be had but they are few and far between (our current property has a cap rate of 9.4% and that is very good for the area).  A cursory search of the UP showed low housing prices and acceptable rental rates.