All Forum Posts by: Michael Bowie

Hi @Sean Thomson,

Knoxville's inventory is currently *very* tight and prices are high. Especially for multi-family.

Hi BP Community, 

I would like to formally introduce myself as a newly minted, official real estate investor. I just bought my first condo near the Fort off of Painter Avenue.

I will be moving in, applying some lipstick, and then renting out the two bedroom unit.

A little bit about myself:
- I work at Oak Ridge National Laboratory, and I have been learning, searching, and saving money for years with which I finally pulled the trigger and invested in real estate.
- My one "key" to success on how I was personally able to invest at 22 years old is.... peanut butter crackers. Every single peanut butter cracker tastes like a $100 bill to me. (saving,saving,saving)
- My current goal is to beat my rival to one million dollars in cash. We are both hustlers and any time I'm not working it bothers me because I know he might be getting ahead. I know what you're thinking, "Have a stronger why than just money." And, I agree.. it's the competition, not the money. For me, personally, I have found that competition is what currently motivates me the most to stay up late and get up early.

-Searching for more two bedroom units, preferably Multi-Family that is right off of an exit preferably in Knoxville. But, I've been forced to potentially look at Dallas, Charlotte, and Kansas City. Also, looking for real estate agents in those cities ( I would like a couple MLS briefs emailed to me.)

With all that being said....

Looking forward to listening twice as much as I speak from here on out.

My best,
Michael Bowie

Hi BP Community, 

I would like to formally introduce myself as a newly minted, official real estate investor. I just bought my first condo near the Fort off of Painter Avenue.

I will be moving in, applying some lipstick, and then renting out the two bedroom unit.

A little bit about myself:
- I work at Oak Ridge National Laboratory, and I have been learning, searching, and saving money for years with which I finally pulled the trigger and invested in real estate.
- My one "key" to success on how I was personally able to invest at 22 years old is.... peanut butter crackers. Every single peanut butter cracker tastes like a $100 bill to me. (saving,saving,saving)
- My current goal is to beat my rival to one million dollars in cash. We are both hustlers and any time I'm not working it bothers me because I know he might be getting ahead. I know what you're thinking, "Have a stronger why than just money." And, I agree.. it's the competition, not the money. For me, personally, I have found that competition is what currently motivates me the most to stay up late and get up early.

-Searching for more two bedroom units, preferably Multi-Family that is right off of an exit preferably in Knoxville. But, I've been forced to potentially look at Dallas, Charlotte, and Kansas City. Also, looking for real estate agents in those cities ( I would like a couple MLS briefs emailed to me.)

With all that being said....

Looking forward to listening twice as much as I speak from here on out.

My best,
Michael Bowie

@christopher 

@Christopher B. Thank you for the information, Chris! That is very valuable information.

You mentioned the purchase price, but how much was the original purchase price & how much was renovation? 

Also, what kind of rehab work did you do to the property? Are there specific niches you look for to redo in properties?

Thank you in advance! 

Interesting. Thank you! That really helps. Great job, by the way. Would love for more Knoxville investors to chime in as well to see if they're having the same experience.

I've found those quick rule of thumbs really help me focus my search.

Exactly. I was thinking the same thing. 

So, referring to the original question, what do you believe is the fair market rule for rent to purchase ratio in Knoxville? Or, what is this ratio on your current properties?

Thanks @Chris Eaker!

Start saving as much money as possible. Live on crackers and peanut butter if necessary.

Also, rent out any spare space you have on Airbnb.
That's what I've done for the past year, and I've saved up about $10k.
You can leverage this money for a hard money loan through an investor. (This is what I'm currently doing) They typically want what is called "points" up front. Which is typically 2-3% of the loan. And, they keep this. It usually does not go towards the loan. Then, they will want 7-10% interest.

Hard money lenders. Start building relationships with business leaders in the community. 

A few methods of finding them:

-Search top businesses in your area and get to know the owners. The website salesgenie.com can help you find their contact information.

-Find local angel investment groups. These are mostly geared toward startups, but you may meet one or two people who also invest in real estate. 

-Find your local entrepreneurship center. Here in TN, we have the "Knoxville Entrepreneurship Center" that is funded by the city. They can help you make contacts. 

P.S: You could also consider renting on Airbnb instead of renters. You can typically make more money. 

Hope this helps.

All the best,
Michael