Properties in Atlanta under 30k, 1st purchase buy and hold

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Properties in Atlanta under 30k, 1st purchase buy and hold

Derrick Jordan
Real Estate Consultant · Atlanta, GA · Member since 2012 · 43 posts · 21 votes

Finally purchased my 1st investment property in Atlanta after wanting to do so for 8 years!!!!!!

Purchase: listed for 25k I paid 18K cash.

Property: 3/1 bedroom originally built in 1930 rehabbed in 2004. Located in Westside of Atlanta

Acquistion Financing: Borrowed 10k (sweetheart) 8k ( Credit union personal loan- good relationship over the years)

1st property event: Fire, locals did not like the fact that I had purchased so randonmly set on fire ( minor damage)

Rehab Financing: Used an Atlanta based bank and received a  50k line of credit because I owned the property free and clear, had good credit 700+ and had an account with the bank with some reserves

Rehab estimate: Licensed Contract 3 bids lowest bid was 38k ( took that one)

2nd property event: 2nd property fire, with kicked in door from fire dept. increased cost 5k ( I was pi**ed)  Luckily no work had started

Solution: befriended a local homeless guy and paid him for security (Great decision)

Construction: Took 12 weeks but full got a full rehab

Renting:  Took 4 weeks to get rented ( Good idea to start this process close to property completion) Hired a property manager to do this.

Deal Numbers:

18k Acq, 42k Rehab, ARV: 68k

Rent 850/mo, Property management 110/mo, note 260/mo, ins 108/mo ( with rental loss insurance), Yard cutting ( 30/mo)

Net about $400.00

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  • Albert Collier
    Atlanta, GA · Member since 2016 · 8 posts · 3 votes
    10y

    Congrats on your first investment im still in the beginning stage got to work on my credit   We should get together & net work 

    0Reply
  • Kenisha ForbesPro Member
    Professional · Ellenwood, GA · Member since 2016 · 64 posts · 18 votes
    10y

    congrats! That's a great deal numbers wise, but westside?? Bless your heart.

    0Reply
  • Heather-Dawn A.
    Atlanta, GA · Member since 2016 · 9 posts · 1 vote
    10y

    Congratulation on a success rehab even with the challenges. When you say 'west side' are you referring to the West End? Just curious....

    0Reply
  • Jim Fus
    Tampa, FL · Member since 2015 · 10 posts · 7 votes
    10y

    I was more than a little leery when I saw the price and was going to ask about the neighborhood and potential  for forced appreciation then I saw your comment about the homeless guy and Kenisha' on the neighborhood.  Nuff said.  Still, as a chronic fence sitter I envy you.  You've taken the first step, and whether that step turns out to be wise or ill advised so long as you learn from it you'll be a better investor in the long run and success will follow.  As the big boys (and girls) on this site are always pointing out, your real education doesn't start until you actually get in the game.    

    0Reply
  • Account Closed
    Rental Property Investor · Decatur, GA · Member since 2016 · 155 posts · 57 votes
    10y
    Congrats!! Great illustration of your "process" and nice creativity on solving your security issues. Also, good job investing on the West Side, It'll follow the trends of East Atlanta, Kirkwood, Edgewood, etc. soon enough! Wishing you all the best!! Will G
    0Reply
  • J.T. Littlejohn
    Suitland, MD · Member since 2016 · 49 posts · 21 votes
    10y

    Congrats on your first deal! It's great that you were able to succeed despite the multiple setbacks and now have a very profitable property. I'm fence sitting like @Jim Fus but realize that if I am to accomplish my long term goals, I have to quit messing around and get in the game now. Thanks for the inspiration!

    J.T..

    0Reply
  • Amy Good
    Real Estate Professional · Moore, SC · Member since 2015 · 47 posts · 11 votes
    10y

    @Derrick Jordan Congratulations Derrick! This is the exact path I want to take on my 1st investment in about a year or so.

    0Reply
  • Yele Omo
    Salt Lake City, UT · Member since 2016 · 20 posts · 6 votes
    10y

    Congratulations on your deal! Funny story about your use of the local homeless guy to keep an eye out. Having boots on the ground is critical. 

    From what I know of that area, it is due to turn around. You'll be patting yourself on the back in a couple of years for getting a property at that price. Kudos to you

    0Reply
  • Regina Sitterley
    Wholesaler · Marietta, GA · Member since 2013 · 106 posts · 20 votes
    10y

    Well done @Derrick Jordan!  I also had a rental, in Lithonia, that had a fire.  I believe it was an accident, though!  That's a crazy phone call to get though, isn't it?!  Best wishes to you!

    0Reply
  • Eric Halverson
    Wholesaler · Atlanta, GA · Member since 2015 · 39 posts · 9 votes
    10y

    congrats on getting it rented.. the key in those areas is to essentially never have vacancy.  I don't buy in the west end personally but I do know some people who have had success there.. your turnover costs can get pretty rough there so hopefully your property management company knows what they're doing.

    At this point you're really reliant upon them.

    0Reply
  • Stan Sugarman
    Investor · Decatur, GA · Member since 2015 · 313 posts · 207 votes
    10y

    We self manage over 100 rental units in the West End and seldom have troubles. Glad to see others discovering a great area.

    0Reply
  • Bhekizwe M.
    Bulawayo, Zimbabwe · Member since 2015 · 1k+ posts · 253 votes
    10y

    Congratulations on the deal @Derrick Jordan. keep it up

    0Reply
  • Jay Grabbe
    Rental Property Investor · Highland, IN · Member since 2016 · 31 posts · 23 votes
    10y
    Awesome job! Love the security detail. I've always wanted to help improve neighborhoods and revitalize a community. Sounds like you are on a good path and will make some money at it too. Another side benefit is the stories u will be able to tell. Haha.
    0Reply
  • Tiffanee Johnson
    Rental Property Investor · Atlanta, GA · Member since 2016 · 23 posts · 10 votes
    10y

    Great job @Derrick Jordan! 

    Contracts on first deal. If you don't mind me asking, why did it take you eight years? What were some of the contributing factors holding you back? 

    Thanks

    0Reply
  • Ricky Clemmons
    Atlanta, GA · Member since 2016 · 5 posts · 1 vote
    10y

    nice investment I am also looking into investing in the WestEnd 

    0Reply
  • Maran Banta
    Atlanta, GA · Member since 2012 · 32 posts · 8 votes
    10y

    Congratulations Derrick - that's exactly what I want to do.

    Where on the West Side?

    I'm liking Adair Park, Oakland City and Grove Park.

    We live in Edgewood, have been here for three years and WOWZA, the appreciation!

    But it didn't happen overnight, well yeah for us, three years = overnight,

    but my neighbor bought for the same price I did 12 years ago.

    We are selling the Edgewood house and want to roll that profit into

    probably a couple investment properties.

    Locals burned you out? Twice? 

    0Reply
  • Derrick Jordan
    OP
    Real Estate Consultant · Atlanta, GA · Member since 2012 · 43 posts · 21 votes
    10y

    Yep. You know nothing like a good fire to say hello. I try to stay as close to I town as possible  so about a 6 to 7 mile radius. Cash is king here people are offering more than list price

    0Reply
  • Derrick Jordan
    OP
    Real Estate Consultant · Atlanta, GA · Member since 2012 · 43 posts · 21 votes
    10y

    So I  purchased my second property in  downtown west  last week for 32k. Its an older house but very near the westside beltline. Im now working on completing the finance for rehabbing it and looking for some good subs for electrical and hvac.  I plan on making this my own home somewhere down the road  when the market will support better rehab values.

    The house was built in 1910 so it has tons of character but needs about 40k in work but it met my buying criteria and I initially lost the bid but it came back on the market 2 weeks later and I believe the realtor was like lets see what this guy is going to do!!!! Checkmate for me.

    I think I can rent it for 860.00-900.00  its has 2 beds 1bath with a possible very small bedroom for a child. this time around im going to make the kitchen and bathrooms the best places in the house for some reason people just melt when the kitchen and bathroom look good. Possibly upgrade on the bathroom sink and cabinet accessories. (not much)

    I have not chosen the section 8 route as of yet but I may on this one.

    I also have purposely not gone for the top rental rate. I probably could get an extra 100  at market and probably 200 if I used section 8.  But Im going to look at this ALOT more this time around.

    Learning experience from first purchase.

    I over paid for the rehab not by much but I did.

    I bought everything new from HOME DEPOT  and I really did not have to.  Atlanta  has lot of places that sell most things you need at a 1/3 of the cost. I just didn't know that.

    I don't have my own network of  subs carpenters, electricians, plumbers, painters, locksmiths, landscapers and pm's  ( I now try to get contact info of every person I see in a pickup or van that does residential work) I have at least 3 plumbers now on my list.

    Must Do'(s)

    In the 30k market what I found is most important is KEEPING THE GRASS CUT. I pay a guy in the neighborhood to cut the grass. I cant tell you how much this helps the curb appeal even in the hood.  I pay 20.00 and the guy cuts my grass and the lot next door. this really helped when the appraiser came out and the neighbors appreciate it to and watch out for my property even more. the first thing I do now clear and trim the lot instant value.

    Mississippi

    Im originally from MS and was able to purchase my 3rd property last week. It had sentimental value as it was my grandmothers old house that was lost into foreclosure by in 2006. I got it for a STEAL (A REAL STEAL) I WILL POST PICS SOON

    5Reply
  • Kevin PolitePro Member
    Investor · Decatur Atlanta, GA · Member since 2011 · 611 posts · 232 votes
    10y

    @Derrick Jordan Good job man. I am surprised you were able to find a $30k home. I almost feel it's a bubble going on with there from the wholesale and MLS listings I get. I know investors selling home for $200k and up and on my he market for less than 30 days. But it is street by street and gotta be close to the Beltline. I saw a beautiful 2br across from Adair Park with 11' ceilings that had my name on it but it went under contract the next day and I can't wait to go back after it closed to see if it sold above list price of $50k.

    I wonder with the Beltline coming online in a year will the retail start to follow? Ar you looking at just 30310 or 30314 as well?

    Again, awesome start especially for your age. My only regret is that I didn't start sooner 

    0Reply
  • Derrick Jordan
    OP
    Real Estate Consultant · Atlanta, GA · Member since 2012 · 43 posts · 21 votes
    10y

    @Kevin Polite just looking at mainly 30314 and 10 sometimes 18

    0Reply
  • Robbie A.
    Rental Property Investor · Jackson, MS · Member since 2014 · 25 posts · 13 votes
    10y

    @Derrick Jordan, when you say there are places in ATL that sell what you need for a rehab at 1/3 the cost, what do you mean? I started renovations on my first buy-and-hold today and would love to know where you get your supplies/appliances. Thanks!

    0Reply
  • Derrick Jordan
    OP
    Real Estate Consultant · Atlanta, GA · Member since 2012 · 43 posts · 21 votes
    10y

    Place off Howell mill by the Marta office doesn't have a name its a warehouse 

    0Reply
  • Bill HamptonBusiness Member
    Accredited Investment Fiduciary, AIF®, Financial Planner, Tax Strategist, Real Estate Investor · Atlanta, GA · Member since 2012 · 2k+ posts · 978 votes
    10y

    Congrats Derrick. Good job on both properties. 

    404-482-3170
    Hampton Tax and Financial Services LLC4.7106 Reviews
    WebsiteView Page
    0Reply
  • Edgar U.
    Real Estate Agent · VA · Member since 2008 · 420 posts · 175 votes
    10y
    Solution: befriended a local homeless guy and paid him for security (Great decision)

    Rent 850/mo, Property management 110/mo, note 260/mo, ins 108/mo ( with rental loss insurance), Yard cutting ( 30/mo)

    Net about $400.00

    I love this idea for homeless guy! Great job all around, now time to find the next one. 

    0Reply
  • Derrick Jordan
    OP
    Real Estate Consultant · Atlanta, GA · Member since 2012 · 43 posts · 21 votes
    10y

    Bought my 3rd and 4th properties!!!!!

    1Reply
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