All Forum Posts by: Matt Leavell

@Kyle Seidel sounds good. I hope that what you want to do becomes possible again. I was looking to grow a portfolio of several of the STR, but didn't pursue it with the legislation going on. Have a great day!

@Allan Smith Thank you for the mention. @Kyle Seidel I am certainly happy to discuss long term rentals and how our company structures our pricing model.  It is a flat fee setup.  

Based upon your specs above, I would not be able to help you because we only operate in the long term rental space, but I question whether you can even do what you are proposing.

Type II permits are not currently being issued by the city and I continue to hear that they are going to begin phasing out these permits by not allowing the current ones to be renewed.  This is the type of permit that you would have to obtain to do what you are proposing.  How long will it take until this passes if ever, it is unknown.  That is the thought process currently from everyone that I have spoken with in the Codes Dept.  I would really like for someone to have some solid evidence that would prove me wrong however!

If you change your mind and decide to look at long term only, then I would be happy to schedule a time for us to talk.

@Joshua W. No matter what you think about the usage of debt, you are right.  The use of debt is a personal decision.  I can understand your wanting to avoid the risk of carrying the debt, but I think that you are making an incorrect assumption when comparing your plan to other people's plans who have posted in this thread.   

You are running numbers planning on paying off the debt. They are running numbers planning to never pay off the debt. They are looking to increase their cash flow, not pay off the debt. Their strategy (for simplicity of explaining) is to never pay off your debt, simply keep borrowing to keep your average LTV on your portfolio at a level that meets your risk tolerance, maybe 70-80%.

In their plan, at year 14 you might have a lot more debt, but you may own 50 houses that are producing cash flow, as compared to 5.  If you had 50 houses producing $200 NET cash flow, you pocket $10,000/mon.  In your scenario, if you have 5 that NET $1,000 then you only pocket $5,000/mon.  In this scenario, what you put in your pocket would be a greater amount of money AND your cash on cash return would be WAY HIGHER than if you owned the properties with no or low debt.

Either solution that you decide is correct for you, but I at least want you to see the other side of the coin.

If I can ever offer you advice on what can be expected after you buy the house and hire property managers, then let me know.  No strings attached.

@Adam Treboutat If you decide to invest in Nashville, reach out to me.  I do not buy and sell, but can certainly give you a perspective from a property manager's point of view and what you can expect to happen after you buy the property.

@Account Closed If you decide to invest in Nashville, touch base with me prior to doing so.  I would be happy to give you any advice, no string attached, from a property manager in the area.  Have a great day!

@David Baker @David Gunther Welcome to BP and real estate investing! If I can offer any insight regarding property management, please let me know.  I am happy to talk anything about it with no strings attached!

@Liam Cook If I can provide any information regarding the rental market around Nashville, feel free to touch base.  I am happy to help any way possible.

@Tobey Porter Thanks for the clarity.  I know that type of underwriting was very prevalent prior to 2008, but do not know what is around currently.  Have a great day!

@Jen L. I would install the flooring anywhere that you would normally install laminate hardwood PLUS anywhere that you generally would not have due to water (laundry room, bathroom, kitchen, etc).  If you go back with carpet in the bedrooms (you certainly do not have to) then at least make sure it is a color that does not show a bunch of stains easily.

@Tobey Porter I am not sure if I am familiar with manual underwriting, or at least not that term, can you give a quick overview of what that is?