All Forum Posts by: Aaron Lovett

Hi @Andrew Untersee, it's great to have you here at BP.  Many have moved to beautiful Nashville for the exact same reason, and stick around because it's just such a great place to live and raise a family.  Be sure to thank your mother-in-law for the life changing gift!

Hi @Andrew Adamany, I'm with @Josh Braun on this one, and your dad - keep your exit strategies in mind and don't assume that the cash flow will remain in place without you having to do repairs in the near future, especially considering the age. You've already determined that the asking price is higher than ARV, so you'd have to have an exceedingly compelling reason to pursue this at the asking price.

As for comps, tThe more out-of-the-norm the property, the less usable information you can get from the comps.  However, just looking at the comps you cited, I'd take note that they average $42,666/unit in as-is condition and $80,000/unit renovated.  It sounds like this property is more on the as-is side of things.  Comparing more of those kinds of properties should help inform you of a market price.  Pretty sure I wouldn't have a built in 1996 duplex in the mix of comps...  

So, in answer to your question: No, that cash flow is not enough for me to overpay for a property.  You make your money on the buy, as they say.  You have to consider that you may want or need to sell it in the future.  When you do, you'll be glad you had the equity built in.

Hi @Jackson Holder, you're in the right place.  Welcome to the BP community!

In my experience, the taxes don't affect the listing price because they are such a small proportion of the market value of the property.

Take a real world example:  I'm looking at two properties listed right now in the same neighborhood, but slightly different houses.  Both are approximately $300,000 homes.  Taxes on one are $1900, the other $1700.  That amounts to a $17 dollar difference in monthly payment.  Folks shopping for $300k homes usually aren't worried about $17 a month.  They're more concerned about which home is better for them.

Century 21 has some tremendous training - very professional and accessible.  But beyond that, as @Robert E. said, it's up to your broker.  I always recommend a face to face with the broker before signing on.  Don't look at it like a job interview, it's not.  Instead, you need to figure out whether the broker would be a good fit for you.  Ask questions, listen carefully, see if you like the way they explain things, have the resources you need, etc.  

One thing some brokers do is waive the monthly "desk fee" for agents if they recruit new agents.  So, if some folks are excessively enthusiastic about their office, ask them if they get anything for recruiting new agents into the office.  ;-)

Welcome, @Account Closed!  Good for you for traveling - experiences trump possessions in my book any day.  Where have you been and where are you going?  Also, have you learned any languages along the way?

So, you're interested in Nashville - awesome.  I'd encourage you to look in the areas surrounding Nashville-Davidson county as well.  The whole area is booming, but the bedroom communities along the Interstates (40, 24, 65) seem to have the most potential for growth.

If you are ever in the area or want to discuss Middle Tennessee real estate, hit me up!

Exactly.  As @Luka Milicevic mentioned, a market value appraisal and a tax appraisal are two different things.  If you want to dispute the tax assessment, go for it.  And in fact, some buyers do seriously consider the amount of taxes that they will pay.  But when you decide to sell, unless the taxes are significantly higher or lower than other similar properties, it will be the fair market appraisal that you'll be more concerned with.

Hi @Stephen Au, welcome to BP!  That's a fantastic income to use for some serious real estate investing in the future.  You might think about taking what might be called a Tim Ferris approach and using your CA income to invest in cheaper markets.

Your banker explained it well:  You started with a deal, the equity in your home.  You have found good properties.  You are also highly leveraged - those balloon notes are no joke.  But, as @Chris Martin said, it's a double edged sword.  Make no mistake that it's the bank that decides whether or not to refinance the loan when that final payment comes due.  Don't get caught off guard when the market changes.  The bank will look out for its own interests first.

I have never seen a degree requirement for real estate loans in general.  There are some very specific lending programs, such as mortgages for physicians, that would necessitate a degree.  The lack of a college degree should not prevent you from qualifying for a loan.  Assets, income, and job history are much more relevant factors.