All Forum Posts by: Sean Kelly

drrr sorry 4 units. So b- area not an amazing deal but still dec cashflow thanks for insight. Anyone else?

I live in Nashville--looking to invest in Knox and Chatt. Spent a few days looking around Knox on redfin and found some interesting properties, trying to get to know the areas and rents vs. home prices.

https://www.redfin.com/TN/Knoxville/1517-Coker-Ave...

Looks like this has been listed for almost 4 months.. $50k/door seams reasonable compared to other units in the area. Rent ready.. and based on P&L it cash flows pretty well, especially if you self manage. Why is this still on the market? Any knoxville natives have any insight? bad part of town? whats the deal? 

yeah 1% rule is really only good for a QUICK gauage, like if you are thumbing through 20 properties and just trying to narrow things down.. i would suggest running it through an analysis worksheet (you can find some great ones a la google).. based on your numbers (at $3500 gross rents) thats 8.8% cap rate..nothing sexy about that. especially if these are "management intensive" units and you're picking up someone else's tenants (headaches)...

this is great info thanks everyone will let you know how i end up proceeding 

Jay Hinrichs no it is not owner occupied, it was my primary residence but we moved and turned it into a rental. I bought it for 156k, put $5k down. Owe $131k on a 15yr

Hongbing K. Yep that's about what I'm thinking. How can I keep the property and leverage the equity It's a great property, 3/2 brick only 13yrs old. I have a heloc open on it at 0+prime up to $100k If I buy a $320k property w $80k heloc and $240k mtg at 4.5%, my "break even" is at like $2400/mo rent (after EGI, taxes, insurance, etc) The debt service on a 10yr heloc is what's making it tough. Bc that's like $800/mo Unless I roll the heloc into a refi of the primary rental--$215k at 4.5% 30yr. Debt service on that would be about $100 more than I'm paying right now for 15yr $131k 3.75% Adversely if I sell how can I take that $180k in profit and turn it into properties that are cash flowing more combined than this single property

Tim Ball you saying you'd keep the rental but cash out refi for other properties? Or sell rental for the hard cash to put down on other properties

Purchase price: $156k 

Recently refied to a 15yr Mortgage - $131k owed -- $1200/mo w/ taxes and insurance

Currently rents for $2400/mo

Property is worth $300k conservatively so could likely sell for $180k PROFIT. 

I want to buy/hold/cashflow properties 

Should I sell? If so, what should I do with the $$$? My local market is .7-1% cashflow. 

What would you do?

jeff knowing you dont have the cash to put down you're right, not the easiest thing to find a duplex in Nashville where 1 unit's rent pays for BOTH units.. may be able to find a triplex that needs work to do that, if you'd be willing to live in one of the smaller units

as far as house hacking though, there are definitely options that pop up regularly on the MLS

was just looking at this one today:

MLS# 1774826 -- https://www.redfin.com/TN/Nashville/1007-Riverside...

depending on how much cash you put down, you can rent the upstairs unit there for ~$800/mo. 

That would basically cut your mortgage in HALF: $325k + 20% down and 3.75 interest = ~$1500/mo including taxes & insurance. house has been on the market for a few weeks and price is dropping. may be able to get it for less than asking, especially since we're about to hit a holiday lull...

What's your budget for the multi? There are some options that still do pop up on mls. 12south is out but other areas woodbine, outside of Germantown, west Nashville, etc. still plenty out there just need to keep an eye out