All Forum Posts by: Jamie Jones

@Rhett Kelton I am thinking a 4 month term and then month to month afterwards, if needed. The July tenants have one dog (they are MTSU students and have parents co-signed on the lease). 

@Bob B. @Rhett Kelton thank you guys for your input. I forgot to mention that I have someone else who has already applied who says that they are interested in signing a lease for a July move-in date. Also, I would probably take $1600 rent at a minimum and charge a $40 monthly pet fee for the 2 "normal" pets, plus a $400 non-refundable pet fee, so the surplus would be more around $1800 if he stayed 4 months. 

Hi BP,

I have a prospective tenant looking to rent out my townhouse in Murfreesboro, TN (Greater Nashville area) for roughly 4-5 months until his new house is finished being built - He has sold his prior home quicker than expected. He has already offered to pay a little over $200/mo. over the listed rent price ($1500 vs. $1295) but had considered asking for $1,600 and a fixed term on the lease. I have listed some pros and cons for the situation below, please let me know what you think. This is my first rental property. 

Pros:

-increased rent

-my property would be available again in the middle of the summer 

Cons:

-costs associated with turnover (cleaning, paint, etc.)

-possible vacancy in just a few months

-potential marketing expense

-tenant has 3 dogs (1 is a service dog - he is a veteran). This worries me a bit with turnover costs.

-may try to leave earlier and get out of lease if home is finished sooner than expected

This is something that most FNMA and FHLMC loans require for their underwriting. As others have stated, I would go the transparent route and state that you are using the funds for future business use. I have never had any problems with a borrower.

@Rachel Hertel Welcome to BP! If you are interested in finding fairly affordable homes in Nashville that have a basement for STR, Donelson seems to be a good area. Many homes there have unfinished basements with a separate entrance that could be ideal for STR. Also, you are close to BNA Airport and Opryland Convention Center, so you can draw more a of a business professional crowd instead of downtown partiers (which I'm sure you prefer with your son being so young).

@Jordan Gutierrez going into real estate lending and learning the ins and outs of financing is also a great learning opportunity. One of the most commonalities I hear between investors on the podcast and those I have met is they know how to structure financing in their favor, giving them higher returns and less risk, even if that sometimes means giving the seller the price they want. In other words, it can make or break a deal.  

Some banks offer a portfolio loan option (something they keep on their books instead of selling off to Fannie or Freddie). Typically, there is a bit more flexibility on these loans since they're kept in house - especially if you are potentially bringing deposit $$ and starting a new relationship with the bank. You can always look at buying down the rate or receiving a lender credit for a higher rate or look at ARM options if you think you will sell the house within the next decade.

Welcome to the forums @Kevin Wright! What part of town are you house hacking in? Is it a small multi-family or a SFR with roommates?

Congrats @Thomas Knight! A VA loan is an awesome way to get started - thank you for service.

If you're in the Nashville area, you should attend this event!