All Forum Posts by: Azeez K.

@Curt Smith thanks for sharing the info on the contractors. I will certainly keep the information handy. I have a feeling I might have to call them in the near future.

Hope all is well

Welcome to BP @Tommy Desmond you have come to the right place. It was great reading your introduction.

Like you I too believe about real estate being a lifetime business. I wish you the very best and success in years to come. Hopefully, we can read some of your success stories here on BP.

@Joel Owens - Firstly, let me tell you I am a big fan. Your response are detailed and provide a great insight and I have learnt a great deal simply by reading your responses. I mentioned a special thanks to you in my new member intro as well.

Anyways, Yes the landlord pays for water and based on preliminary numbers we received during the due diligence it seems there are some water leakages that need to be fixed. This is causing the water bill to be in 800/month mark which is very high IMHO

We are certainly looking to get a price reduction due to some of these issues. I am hoping that over the next couple weeks I am able to uncover more facts on this pursuit. However, will keep you posted as to how this plays out over the next couple weeks.

Thanks again. Enjoy your weekend.

@Clay Manship - I acquired my first MF recently with tenants occupied. I followed the same steps pretty much exactly as described by @Nancy H. and it worked really well.

Although before buying the property I had an opportunity to meet with the tenants. This is because the seller was really helpful during the transition process.

Anyways I wish you all the best.

@Wendy J. Welcome to the BP Community. You have come to the right place. You will find a wealth of information here and the community members are very helpful.

All the best. Keep us posted on how your MF search ends up.

@Rick Baggenstoss thanks for your input and time to respond to the post. I do agree that Ponce/Moreland seems better bet for appreciation. I have been scanning for MF properties in the area for a while but have not had enough luck. Some properties on Ponce seem to expensive. BTW have you rented your SF residence in the West End area or you planning to fix it up or just hold?

@Michael Power Thanks for the neighborhoodscout.com tip. I did look it up for info on the area and it certainly helped. BTW did you have any luck finding a MF opportunity in the area?

@Curt Smith You bring up some great points my friend. I have already reached out to some PM's trying to get their input on the situation. I have also decided against being a PM and hiring someone to manage the property if we go down the path of buying the MF. I am already pretty busy so it seems like managing the property myself will be a big headache and I can't afford to waste time and energy with making petty decisions and dealing with tenants

@Paul Timmins thanks for the tip on ARM certified property manager. I have already reached out to a few.

The BP community rocks. Thanks all for educating me and providing guidance and support. Have a great weekend.

@Kevin Polite - Thanks for your valued feedback its definitely good to get some insight from a seasoned investor. You and @Curt Smith both bring up a good point about talking to a property manager. Initially, I was thinking of managing the property myself but the more I think about it. I like have an experienced property manager deal with it..

Also Curt you bring up a good point on deferred maintenance.. which happens to be one of my key pain points with the above property. I will follow down the path of talking to a property manager and keep you all posted as things progress.

Thanks for your valued input and feedback it is much appreciated.

@Ali Boone Thanks for the insight. I did not know about that. I have to do a little digging in to this... Thanks for the info it sounds very interesting.

@Ali Boone Thanks for your message. It's great to hear from fellow real estate investors. It seems there are quiet a few things coming along the O4W area. Just yesterday I was driving by Fritti and saw some retail shopping area being constructed. In addition, I also saw some activity and development by Rathbun's it seems that some is in the process of developing a food market of sorts. It seems like a great place to have properties. It's seems hard to find any good deals there as the prices are trending upwards. Anyways thanks for your message and all the best on your investment endeavors.

@Curt Smith I have not been using any services like agentpro247. So far it's just been me doing searches on the internet, setting some criteria on rental listing sites and taking to agents rookie type stuff. Thanks for the tip I am looking at agentpro would like to streamline finding leads.

@Brandon Turner - Thanks for the tip I will be setting it up shortly. Btw loved your Step-by-Step path..very cool. Hope your investments activities are going well. Thanks again

@Sreenath Vemulapalli and @Rich Blenz thanks for your messages.

So here is the situation:

Strategy: Long Term Hold 10+ years

Area: West End Area, Atlanta

# of Units: 6

Built in: 1960’s

Property Class = C

Property Status = Due Diligence Period

Contract Price: $140,000

Closing Cost: $2,800

Total Purchase Cost: $142, 800

Down Payment: $37,800 (25% down payment+ Closing Cost)

Mortgage Amount: $929

Rents: $450 * 6 = $2,700

Effective Gross Income = $29,808 (after 8% Vacancy)

Total Operating Expense = $14,900 (Opex)

NOI = 16,000~

NOI after Debt Service = 5,000 ~

CAP= 11.6%

Problem:

1.Although the numbers seem to make sense I am not sure about the potential growth in the west end area of Atlanta. I am hoping the new Falcon’s stadium could bring in some development? Any thoughts on the West End Area of Atlanta?

2.Cap rate seems high however, I have a strange feeling that it could be a headache to collect monthly rents from the tenants – As the area is not fully developed and there are pockets of developed and run down lots. Tenant quality may be a hit/miss.- Any thoughts?

3. Is there other area of Atlanta you would rather spend $140,000k from a long term strategy to maintain positive cash flow levels and gain long term appreciation?

I would love to get thoughts of fellow investors in the Atlanta area and would appreciate your insight on the deal? Go or No-Go