All Forum Posts by: Luke Holcomb

@Hernan Guelman, 

Other options would be investing in markets that aren't as hot. I had dinner with a guy from BP the other day who came to our fair city. (Chatt, TN) to look at rentals. He is accustomed to doing turn key stuff and getting anywhere between 10 and 20% CoC returns. From My understanding he plans on having someone around here to find stuff for him and a property manager manage it. Depending on your loan scenario we have a number of different CoC options that are north of 15%. I think a lot of it boils down to, do you want to look at Real Estate as a way to diversify your portfolio into something with more secure returns, or do you want to build a business that acquires and rents properties.

I am interested in the later, so for me, it makes more sense to be in a market that is close and that I am familiar with. 

If you are in the former category, then hypothetically it matters much less where the investment lies. 

I have a deal up on the Market place in Chatt that with your loan terms and accounting for 50% expenses, and not accounting for any appreciation, your CoC would be 15.9%.

All in all I think your situation can be summed up in the sense that it doesn't make sense to invest in this area (austin) without an almost speculative appreciation play. But like Brandon and those guys say on the podcast, there is probably a market within an hour drive that does make sense. And if not, you can always come visit our happy town (Outside magazines town of the year) and look at what we have. 

take care and happy investing. 

ps- I love numbers, so if you ever need help figuring out a deal, please PM me. 

-Luke

This is an SFR in a b/b+ neighborhood. There are a mix of owner occupied and renter occupied houses on the block. Three of the Owner occupied houses are new construction. It is less than a 1/2 mile from a park, bus stops, and local businesses. It is less than two miles from the University of Tennessee at Chattanooga, a university of 11,670 that has grown by 16% in the last 5 years.

Give us a call or send a message if you are interested. 

-Luke

@Kurtis Montgomery

Other folks in town love the cash out refi in east chatt as a way to double their money (refi out twice what they put in). I know people that do it in that area and love it. From your description I would assume that the area is around Glass St. If this is the case, I will say I love the spirit of the work going on in that area, but I don't believe it will come to fruition. If it is not in that specific area, then I would love to know where it is as we may consider East Chatt to be two different places. 

Either way, in east chatt (as I would describe it) I would go with a higher return. I would also verify rents with the section 8 guidelines for that zip code. Take the table and subtract 200 or so for utilities as the table is meant to be a sort of 'all in' number for the residents. This is a good backstop, because in East Chatt section 8 most likely represents the highest rents the market will bear. 

Check out: http://www.chahousing.org/s/index.php/programs/hou...

and look at the section that says, "Landlord Briefing Package (All in PDF Format):"

then click on "Click Here 2016 SAFAR Payment Standards (effective 10-1-2015)"

Look forward to hearing about it!

kurtis, 

All and all that looks good I think a lot of folks buy for 3% CTRR in East chatt. I wouldn't be on appreciation. It does look like you will be cash flowing quite a bit. Is it currently rented and if so, how much? 

@Edwin Fisher, it's ever changing but one of our mailers got a response rate north of 3%... We are looking at 5 deals total from that one, so all and all it was a good return. 

@Jason Eyerly I use Podio. It is free and customizable. I can access it on my iPad, iPhone and desktop. I can chat with partners, share info, etc... I have tried a number of other products and this has (for REI CRM) been hands down the best product.

@Kyle Kufeldt). 

Thanks guys!

-Luke

hey @Nolan J Scott Congrats on the duplex and finding Bigger pockets. This place is a wealthy store of info. I am in Chattanooga too. Give me a call if you ever want to grab Coffee! 

-Luke

I think we should plan something. It may be best to do something after the Holidays. For you guys who don't know there is the REIA holiday party this Thursday (Dec 10). I'll drop the details below. In the Meantime @Edwin Fisher, I'll send you a text. Lets get together. 

REIA Holiday Party                                                

Dec 10. 6:30 - 8:00pm

AllSouth Appliance 

6431 Bonny Oaks Dr 37416

@Marcus Blalock 

That sounds great, Will do.