All Forum Posts by: Matt Castle

I have investors in the same situation. Any MFR of average quality or better that hits the Knox market can be measured by the hours vs. the days on market.

I'd suggest finding anyone you know who can help you get a construction estimate. General Contractors might quote you a price in $/sqft. Some home builders have preapproved plans already on file so they may quote you a price. Occasionally, a full service lumber yard may have someone who can put together a fairly comprehensive list of materials for you and then you can add X% for labor. 

Several years ago, I looked into building a complex of 4plex 2-story townhomes and construction was the cheaper route even after the increased construction loans cost. Nowadays, I'm not sure how a hotter market, tighter labor and higher costs of construction might play into the calculation(s). 

Rates for an investment property are generally higher than owner occupied. Also depends on other factors like down payment, lender's loan requirements, after market loan buyers, etc., etc. 

I always suggest talking to at least 3 lenders to get a feel for the local market. I've heard several Knoxville & Johnson City investors say good things about Mountain Commerce Bank for it's investor friendly loans but I haven't used them personally. 

Certain areas are developing at astonishing pace and others aren't. My broker lives there and works commercial on near daily basis if you want to give him a ring just drop me a private message. Don't want to put phone #s in the forum. 

Best guess: package deal. It's not uncommon to see multiple properties sold in a package or bulk deal owned by an investor to another investor. 

As an investor, I think specializing in investors only is a great idea. As a realtor, it can be very difficult to be that specific. Not trying to be disparaging in any way, but if you're just starting out, it may be lean times if you're specializing in one specific segment of the market. Might be safer idea to take all clients at first, then once you build up your client list, move to whatever specialization(s) you prefer. 

Welcome to BP, Neighbor. 

My first thought would be do you not have a designated laundry room for the property? 

Second would be does the W&D fit the space? Meaning, would the W&D be openly exposed in the room causing it to stand out in your rental photos or is it hidden by a closest or something? If it's going to look bad and out of place, maybe forget it and go with bedroom furniture.

I generally advise never clients to never cannibalize bedroom space, but if renters are always asking for a W&D, maybe go with the W&D and purchase bedroom furniture when finances allow it.  

Jonesborough is a great area and likely will be for foreseeable future. I have family who live in the area and they love it, but I personally don't own anything there at the moment. 

I know tourism is a big thing considering the annual festivities and charm of the community, but it's mainly single family homes and such. Perhaps multifamily would do well there, so ask your real estate agent if they can do a comp analysis on multifamily property inventory, rental availability, etc., etc. See what your competition is, how much you would have to compete, etc., etc. 

Try Josh Coon of Park Hill Realty and Jay Combes of Our Home Real Estate. I can give numbers but not sure forum rules permit it. You can google name & company name for contact info or PM me for info. 

Mack, 

I'm in Abingdon, VA, as well, so feel free to reach out anytime you want to talk shop.

As far as pros & cons, it really depends on your goals, skill sets, time you want to spend on a project, etc., etc. Unfortunately, it's not just a one or two variable answer. 

For example, if you're an experienced contractor or have a family who is, it makes a lot of sense to buy foreclosures and house hack your way to sweat equity via DIY skills. Conversely, if you're a busy professional who works 60hrs/wk or you have 3 kids and zero free time, buying turnkey might be the way to go to save your sanity. 

Similarly, if you don't like making 5 trips to Home Depot b/c you're learning on the fly via YouTube videos, turnkey is the way to go. But if you have the time to go slow and learn by doing, house hacking is a great way to learn the skills and reap the sweat equity rewards. 

Same goes for becoming a landlord, collecting (or trying to collect) those rent checks or getting calls in the middle of the night about a leaky roof or a clogged shower drain. Property Managers aren't exactly cheap, but if you find a good one, they are worth heir weight in gold. 

Hope that helps. 

National Real Estate Insurance Group 

https://nreig.com