All Forum Posts by: Matt Castle

@Account Closed I've used Builders Firstsource a few times and but closest one to you may be Johnson City area. 

I've known clients who love Greeneville Builders Supply but I have no personal experience with them. If you google "cabinet supplier Greeneville TN" or any other product you need, you can probably find them closer to you. 

Surprisingly, I've found Facebook Marketplace to be a decent help finding building materials. Lots of people are upgrading their homes vs buying new, so there are lots of brand new leftover materials selling at half price nowadays in bigger markets. 

@Gregory Massi it really depends on the quality of the home and needs of the seller(s). Ex) if it's a seller who is already under contract or waiting to sell before buying a new home, then a cash buyer usually trumps someone who has to get a mortgage. 

Also depends if it's an in-demand home vs a home sitting stagnant on the market for 90+ days. I can usually get my clients bargains if it's a fixer-upper or a flip home if they can use cash and aren't too picky about the home inspection. 

@Gregory Massi No investments in Knox for me yet. Trying to get settled and sell some homes in other areas first.

As far as your potential rentals, in my opinion, it depends on your goals: 

If you're flipping, it's hard to go wrong with SFRs in this hot market. A good SFR priced right can be under contract in a week.

If you're buy & hold, MFRs might be the way to go b/c of the cash flow, but many folks know exactly what their MFR is worth so they're pricing it aggressively hoping to get max value in a hot market.

Should be plenty of us here. 

Jonathan, 

Quite a bit of distance b/n Kingsport and Knoxville. What location are you flipping and maybe I can help. I work both Kingsport and Knoxville so I know a few places that can help you. 

You could try a piggyback loan where the loan structure is 80/10/10... 80% first mortgage, 10% second mortgage, 10% cash down payment. 

Occasionally a seller will do an owner financing / seller carryback but not likely in this hot market. 

 I can recommend one but I try not to post recommendations or phone numbers in the forum. Send me a PM and I can send you their info. 

@Milan Joshi

I think it really depends on: 

1. the amount of $$ you want to invest.
2. the type of tenants you want to attract. 

If you want < $700,month, then the areas and quality of tenants might not be to your liking or comfort level being new to real estate investments. 

If you want > $700/month, the areas and quality of tenants will likely go up and the drama goes down. 

In a city like JC, I tend to like areas near schools and hospitals where I can rent to teachers, the occasional grad student or medical professionals. 

I can recommend a Realtor in the area if interested. Just send me a private message. 

If you're talking about financing the down payment (20%?) only, you have a few options if the friend has >20% equity:  

1) owner financing down payment - friend/seller may be able to provide the cash requirement and you pay seller/friend back over agreed upon terms. Downside is you likely will not cash flow until it's paid off b/c you have two payments to make (1st & owner financing mortgage AND then your lender may add this owner financed mortgage into your DTI calculation.

2) allow your friend to own 20% of your rental. Perhaps a creative lawyer can assist you setting up the structure or setting up paying it off sometime after closing.

3) ask a family member or friend to provide the down payment

4) a mortgage wrap is possible but risky with the due on sale clause written into the mortgage. If your friend's lender finds out he sold the house and you're paying the mortgage, they may call the entire mortgage due and you're scrambling for financing. 

YW. 

No, I passed on the 4plex. After doing all the work, I was setting up construction loans, then we got new tariffs on building materials, so I passed. Probably should have pushed forward considering the additional tariffs that hit last week.