All Forum Posts by: Sean Wilson

After being shut down for 2.5 months, my STRs (semi-rural cabins) have been booked solid.  Both July and August have been over 90% occupancy.  In addition to what others have mentioned regarding a shift from fly away destinations to driving destinations, I attribute a large amount of the uptick to a reduction in inventory.  The couple months of shutdown to STRs in that area scared a lot of owners, and they either sold or converted to LTR.

I just closed on a 4/2 SFR Thursday. I got it for a pretty decent discount before the investor who originally had it under contract had their hard money loan dry up due to COVID. In my markets, there has been a lot less competition for wholesale deals lately, especially with some of the institutional buyers stepping out of the market temporarily. I am seeing significant price drops on those as wholesalers are trying to move them before they default on the contract.

Hey everyone,

Thank you for the feedback!  I closed on the house yesterday, and started rehabbing today (starting with removing a tree damaged by the storms and gutting the master bathroom).

@Justin V. @Brian Levredge the house is approximately 1700sf, so I would consider it reasonable size for a 4BR rental.

The bedroom sizes are as follows:
BR#1 - 12x11
BR#2 - 14x11
BR#3 - 13x11 (current master connected with BR#4)
BR#4 - 17.5x11 (converted garage)

The property manager stopped by today, and he came up with an idea I hadn't considered.  We are going to move the bathroom door from BR#3 to BR #4, as they both share a wall with that bathroom.  This will make the converted garage the new master suite.  It requires a little bit of re-configuring the layout of the master bath, but it should be pretty easy and make the property more marketable.

Hey @Brian Levredge, I miss doing the happy hours with you guys.   Hopefully those will start back up again soon.

I am definitely seeing a current shortage in the market for mid range 4BR properties, which is why I am debating which way to go.  I haven't been trending it longer term to know if that is temporary.  Have you had any issues renting houses with small(10x10) master bedrooms?

@Derrick White I guess I either spoke too soon or jinxed myself!  This week alone I've had an HVAC leak (2yr old unit, defective factory part), a toilet shut off valve washer disintegrate and clog line, and an above range microwave die.  Fortunately no cows though. 

@Mark Gliebe Thanks for the input!  I'm definitely leaning the 3 BR direction.  I feel like the small 1950's master bedroom would be a huge detractor for a lot of people, myself included.  While the comps on a 4 BR might be higher, finding tenants quickly could negate any difference.

Hey @Charles Jabaley, I am honored this thread was your first post!

As for your question, I don't mind at all.  This property is in East Ridge.

I've received several nuisance item complaints, such as missing window screens (that haven't been there in years) and toilet handle chain broke.  I attribute those to tenants being stuck at home.  Fortunately I haven't had any major repair calls, but I tend to stay on top of major maintenance.  Hopefully I didn't just jinx myself!

I am closing on another rental rehab project in Chattanooga, TN next Friday, and I could use some advice. 

The house is in a B class suburban neighborhood built in the 50s.  The house is legally a 4/2, as a result of a permitted garage conversion that was done years ago to add a bedroom and a laundry room.  I normally write off properties with converted garages or tacky additions, but this one was surprisingly well done and looks seamless to the untrained.  Years after the 4th bedroom was built, it was combined with the master bedroom via a 6ft wall opening between the two rooms to make a large master suite.  

So, I basically have 2 options.  A 3/2 with a large master suite, or a 4/2 with a smaller 1950s size master bedroom with master bath.  What would be more appealing and/or a better return on investment?  

I'll have to do framing & drywall work anyway to separate the laundry from the bedroom and create a hallway, so the cost is negligible either way.  If I go with the 4/2, the 4th bedroom entrance would be via that short hallway off the kitchen that also contains the laundry room and a rear entry door, rather than through the master bedroom door in the living room as it is currently.  The property would definitely flow better with the 3BR layout.

From a market perspective, there aren't currently very many 4 bedroom houses for rent. The ones I did find available were mostly C- section 8 properties or pretty high end large properties, not much in the middle where this would fall. Looking at the HUD fair market rent for Hamilton County, there is an over $200/mo difference between a 3br and 4br ($1081 vs $1305). I only have one other 4 Bedroom rental, and it has been consistently hard to rent. However, it is in Nashville (different market), and I think that may be more due to layout, location, and size.

If this was your project, what would you do?

@Steven Peterson Martin Winter was suggested to me by a real estate agent, and wouldn't return my phone calls after coming out to look at a roof.  I've used Jason Holder with Holder Roofing and Nick Apone with Complete Restoration Solutions.  They both did very professional installations, and were priced better than the other quotes I received.  Feel free to message me if you want contact info for either of them.