I invest in flips, rentals, and building workforce and affordable housing. Flips can be rewarding if the purchase price is right. Rentals provide ongoing monthly cash flow and refinancing potential. New construction lets me create something great from the ground up. Currently, I focus on mission-based development of affordable housing for people earning 60-100% of the Area Median Income (AMI), about $78,000 annually in Davidson County.

One standout was a full gut rehab in East Nashville. I purchased the property for $294,000, spent $335,000 on rehab, and achieved an after-repair value (ARV) of $1.2 million.

My best friend in St. Louis, MO, my hometown, is an investor and real estate broker. What he did piqued my interest. I started researching and learning, then stopped and restarted a few times. About four years ago, I joined REIN and stayed in the background. After attending sessions, meetings, and training, I finally gathered the courage to start investing. I launched my first two LLCs in January 2019.

My worst deal was my second flip, also in East Nashville. I bought the house for $188,500 and rehabbed it for $165,000. Although I sold it for $395,000, it resulted in a net loss due to going $40,000 over budget, extended rehab time, and accumulating monthly loan payments, including multiple term extension fees and interest-only payments, which eroded profits.

Full gut rehabs often reveal hidden costs, especially with older homes. Metro codes may require unexpected work that raises expenses. Dishonest contractors can severely hurt your profits, so vetting them is critical. Also, buying properties at the right price is essential—don’t overpay for houses needing extensive work, as code upgrades can surprise you once walls are opened.

Look for properties with more than one exit strategy—such as a house that can be flipped or held as a rental—so you have a Plan B. If using hard money loans and the flip budget overruns, you might switch to a lower-cost rehab, do a cash-out refinance, and keep it as a rental for monthly income. Learn how to find both sales and rental comps. Network actively and ask questions from experienced investors and professionals. Avoid paying subcontractors far in advance; pay weekly and hold back some funds until key inspections pass to ensure work completion and avoid costly rework.