All Forum Posts by: Jake Kellerhals

I'm familiar with this package as well, and I would certainly be careful if I were you. Jumping from 2 units to close to 30 (about the number I currently have and manage in the area) is a big jump, but one that you could probably handle. However, if you are having trouble with just the two units, you could have yourself a VERY tough situation on your hands if you get too big, too quickly. Even the best properties can ruin an investor if they aren't managed properly. 

So my partners and I have a "classic" dilemma. We bought 16 units (6 duplexes, 1 quad) on the same street 2-3 years ago (in 3 separate transactions). We paid about $66k for the duplexes, and $120k for the quad. We put 10% down and had private mortgage financing between 12-15 years, fixed. Income is as follows:

Duplexes- Averages $1,150 per duplex per month

Quad- $2,300 per month

For easy math's sake, lets say we owe $60k on each duplex (it's actually less than that) and $105k on the quad, for a total of $465k. I am contemplating selling at $90k per duplex, $180k for the quad. This would leave us with roughly $25k NET per duplex, $66k for the quad, TOTAL of $216k. 

What would you do here? The units are about 50 minutes each way from my house (I manage them) and the travel is wearing on me. BUT I would be looking at about $7k per month cash flow once they are paid off. The buildings were built in 2003 and could easily be held for the long term. I am debating selling them and using the money via a 1031 to buy property closer to home (which is more expensive) or just keeping them forever. Help?

Congrats on the purchase! I went to KSU (was there when the very first on-campus units came online) and I believe the area will only continue to grow. 

I've never rented to students personally, but the increased income potential from renting by the room seems too good to pass up. I have an investor here in Chattanooga that has done that and receives above market rent without incurring increased maintenance cost. She does this by being VERY diligent in her tenant screening, making sure to only rent to those with excellent rental histories. You CANNOT be too careful when renting to 18-24 year olds!

I did my TN licensing through proschools.com The cost was in line with other options, and it was completely online. The licensing exam was a BREEZE after completing their course. I highly recommend! 

Another thing to consider, if you get your license and you do work with some buyers and sellers, it really does give you a different handle on your market. I feel like I know much more about what is going on in my area simply because I'm talking to more people and visiting homes that, as an investor, I'd never go check out. 

Absolutely worth it. I did it because I got tired of waiting on other agents to get back to me or write up offers for me. I never intended to be an "active realtor"….. only to do my own deals. Then I started having a few friends use me here and there, and after a year I actually quit my day-job to do real estate full time. I get 100% of my living expenses from realtor commissions, and let my investment money stay separate and keep rolling over. 

One point that I haven't' seen on here yet, it has also allowed me to meet other investors and bankers that I might not ever have met if I wasn't a realtor. They heard about me, as an active investor, and reached out to me to help them get started. The relationships have been invaluable….. not to mention I get a piece of their deals in the form of a commission! 

The deal I have with my partners on the investment side is that when we buy a property that pays a commission, I get to keep it. When we sell something on the MLS, I don't charge any commission. We all win and I do all of ground work/contract work for them.

@Patrick Camuso Feel free to call, text or email any time. You can start looking to get a feel for the area, but more than likely the deals that are out there right now will not be the same deals that will be available then. 

[email protected]

706-217-8133

Patrick,

I'm a realtor in Chattanooga. My partners and I have flipped several this year, as well as have a decent portfolio of long term rentals. There are several areas of town that are hotter than others, but we are also a small enough town that you can find good deals in lots of places. Main areas that I would search are North Chattanooga, Hixson, Signal Mountain, East Brainered, Ooltewah and Ringgold (GA). 

We've flipped in Ringgold (GA), Signal Moutain and East Brainered. We currently have two under contract that we are purchasing to flip in Fort Oglethorpe (GA) and Soddy Daisy. To me, the area isn't nearly as important as the deal. The "hot" areas have lots of competition, driving the price higher. Of course we don't want to flip in bad parts of town or mostly rental areas, but we are going to flip wherever we can find a deal that makes sense. 

With the two purchases we are making, I won't be looking to buy for a while. Would be happy to help you find something in the meantime. 

@Account Closed , our inventory currently sits at about 145-150 REOs. A year ago we were consistently above 200. Not sure how that stacks up compared to other markets, but we have certainly moved through a lot of them. 

Would be happy to assist Tom.