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

[Derrick Jordan]

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