Stone Mountain (Atlanta, GA) Buy & Hold Townhome

Real Estate Deal Analysis & Advice
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Stone Mountain (Atlanta, GA) Buy & Hold Townhome

Jenny Sun
Investor · Atlanta, GA · Member since 2016 · 10 posts · 1 vote

Investment Info:

Single-family residence buy & hold investment in Stone Mountain.

Purchase price: $64,000
Cash invested: $25,000

My first investment property! JV with a family member.

How did you find this deal and how did you negotiate it?

Purchased through a property manager/realtor. They negotiated on our behalf.

How did you finance this deal?

Conventional loan.

How did you add value to the deal?

Put $6k in rehab into the property. Painted the kitchen cabinets, switched out hardware, updated the flooring.

Lessons learned? Challenges?

With the right property manager/realtor combo, this has been an almost hands-off experience. We've learned some lessons about HOA dues, taxes, insurance, having enough money for unexpected expenses like a plumbing issue.

Did you work with any real estate professionals (agents, lenders, etc.) that you'd recommend to others?

Yes.

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Jason Pennacchio
Brooklyn, NY · Member since 2017 · 28 posts · 21 votes
6y

That's a very nice looking property. My first investment property is in Stone Mountain as well, surprised to see a brick house in Stone Mountain. Congratulations. What area of Stone Mountain is it? that sounds like a GREAT price.

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  • Jason Pennacchio
    Brooklyn, NY · Member since 2017 · 28 posts · 21 votes
    6y

    That's a very nice looking property. My first investment property is in Stone Mountain as well, surprised to see a brick house in Stone Mountain. Congratulations. What area of Stone Mountain is it? that sounds like a GREAT price.

    2Reply
  • Renaud Schmitt
    Member since 2019 · 1 post · 0 votes
    6y

    Hello Jenny, Congrats on your first investment property.

    I am glad your experience has been positive so far, i wish you the best luck and hope you grow your business very fast.

    I was just hoping you could provide a little more info. I am moving to Atlanta (from DC) next month and i am looking to buy similar investment properties (similar price range). Would you mind sharing how much rent you are getting (or expecting) out of this deal? When i look at zillow for sold prices versus asking rent, i have a hard tie finding areas with a good ratio (prices are typically very high compared to expected rents). 

    Thanks, I appreciate any extra info you might provide.

    0Reply
  • Jingru Sui
    Real Estate Agent · Atlanta, GA · Member since 2014 · 683 posts · 317 votes
    6y

    @Jenny Sun Great job! Have you rented it out? I always wondered how long a property can get rented out in Stone Mountain area. 

    0Reply
  • Andres A.
    Specialist · Atlanta · Member since 2019 · 88 posts · 53 votes
    6y

    Now that's a great price! Congrats!

    0Reply
  • EMarie Windham
    Investor · High Point, NC · Member since 2015 · 38 posts · 25 votes
    6y

    Congrats Jenny! lovely looking property! do you mind sharing what the ARV was?

    0Reply
  • Jenny Sun
    OP
    Investor · Atlanta, GA · Member since 2016 · 10 posts · 1 vote
    6y

    Thanks, @Jason Pennacchio ! The property is on the south side of Stone Mountain. We’ve had it for a little over a year, and I’ve only visited it once...right after closing.

    Do you have other properties in Georgia?

    0Reply
  • Jenny Sun
    OP
    Investor · Atlanta, GA · Member since 2016 · 10 posts · 1 vote
    6y

    Hey, @Renaud Schmitt! Thank you! I haven’t done a whole lot of research in the Atlanta market because I’ve been getting pretty frustrated with my searches as well. The Stone Mountain area has gotten more pricey over the past year and I feel we got lucky with finding the property. I believe we are renting the unit out for $875 at the moment.

    Let me know when you move to Atlanta!

    0Reply
  • Jenny Sun
    OP
    Investor · Atlanta, GA · Member since 2016 · 10 posts · 1 vote
    6y

    Hey there, @Jingru Sui! It’s so great to see someone else in the Atlanta area. We’re currently renting the unit out for $875, we started at $850 last year. It’s been cash flowing well for us.

    What areas have you invested in?

    0Reply
  • Jenny Sun
    OP
    Investor · Atlanta, GA · Member since 2016 · 10 posts · 1 vote
    6y

    Hello @EMarie Windham! You know what? I am seriously new to real estate that I don't know what the ARV is on the property...I have much to learn!

    0Reply
  • Jason Pennacchio
    Brooklyn, NY · Member since 2017 · 28 posts · 21 votes
    6y

    Only my one SFH (single family house) in Stone Mountain at the moment. I was having trouble finding properties with good cash-on-cash and cap rates when I searched as well but eventually found this deal. By the way ARV is After Repair Value, it's a good measure of a deal to see how much value was created after repairs are complete.

    1Reply
  • Jingru Sui
    Real Estate Agent · Atlanta, GA · Member since 2014 · 683 posts · 317 votes
    6y
    Originally posted by @Jenny Sun:

    Hey there, @Jingru Sui! It’s so great to see someone else in the Atlanta area. We’re currently renting the unit out for $875, we started at $850 last year. It’s been cash flowing well for us.

    What areas have you invested in?

    Hi Jenny! I have properties in Kennesaw, Woodstock, Smyrna and Powder Springs. All on the other side of town from you. Mainly because they are closer to where I live. :) 

    0Reply
  • Jenny Sun
    OP
    Investor · Atlanta, GA · Member since 2016 · 10 posts · 1 vote
    6y

    @Jingru Sui That’s awesome! My realtor has a specific focus on Gwinnett, so I haven’t really looked in other counties.

    0Reply
  • Jenny Sun
    OP
    Investor · Atlanta, GA · Member since 2016 · 10 posts · 1 vote
    6y

    @Jason Pennacchio Very cool! I'll have to look into how to calculate ARV!

    0Reply
  • Bill HamptonBusiness Member
    Accredited Investment Fiduciary, AIF®, Financial Planner, Tax Strategist, Real Estate Investor · Atlanta, GA · Member since 2012 · 2k+ posts · 977 votes
    6y

    @Jenny Sun

    Congratulations 

    404-482-3170
    Hampton Tax and Financial Services LLC4.7106 Reviews
    WebsiteView Page
    0Reply
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