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

[Derrick Jordan]

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