Purchased My First Rental in Atlanta

[Joe Fernandez]

Hi BP, I am closing on my first investment property next week.  I'm jumping in head first!

This was an MLS deal in Decatur, GA. The area is still rough but I think I'm in a good pocket, and I predict property values will soar.

I paid 100k hard money for a 3/2 ranch on a big corner lot.  I plan to re-finance as soon as possible.  

The original plat (recorded in 1960) and legal description shows the property is actually two lots, but the physical house is built on one lot, and the other lot is just the Yard.  I wonder how hard it would be to divide the lots.  This is in unincorporated Dekalb.

I'm inheriting a tenant at $900 a month.  But with some updates i'm confident I can get $1400 a month.

There are issues with the house that came up during inspection. The main issue is flooding in the crawl space.  I need some hardscaping to divert runoff water and possible water proofing (my inspector believes the hardscaping will solve it).  Home needs new floors and a new kitchen.  Everything else looks good.

I read the current lease and it states I can end the lease with a 60 day notice and a $100 fee paid to tenant.  Is this normal on leases? I was expecting to have to honor the lease until mid 2017.

Should I end the lease, renovate, and get the $1400 in rent I'm seeking? or let the tenants stay?  Are there any issues I can run into when ending the lease early?

I'm a week away from closing, I'm a bit nervous since this is my first property, is there anything I should be preparing for?  Tips are welcome.

Any recommendation on contractors that can hardscape to divert water are appreciated. 

I guess I finally have to read brandon's "The book on Managing rental properties".  It's been sitting here gathering dust.

Thanks BP!

[Kevin Polite]

Joe, I'd find to hard to go from $900 to $1400 month without a lot of repairs & updates in East Lake. I believe you can get that price, but you're talking 2 totally different tenant profiles. In that area you could have 2 homes next to one another and one could rent for $900 and the other for $1400 but you'd see a major difference in the homes.