All Forum Posts by: Andrew Barrett

 Good plan. I'd probably go with doing 25-30% down over all cash so that protects you from being underwater if the market takes a minor correction.. Which i am fairly certain it wont for 5 years at our current pace. but maybe more like 7 before we even catch up with our current housing inventory needs. So just plan ahead by looking at the past and do what makes sense.

If you are really concerned then do 50% down on 2 a year instead of 100% on one.. use the tax benefits to your advantage and run with it! (talk to a CPA that is familiar with all those benefits and can explain them to you in detail!! Then decided) 

Check out student rentals- they are my favorite in North Ga. A 4 bed 2-3 bath 1900-2300 sqft home goes for $190k-275k and pulls in $500-650 a bedroom all day and depending on the situation i lean towards female students so i have been able to do 2 beds in some rooms for $450 each. so i am cash flowing around $500-850 a month in my pocket and that is with 20% down so you could expect a lot better with cash or more down! But i do have a property manager so i don't have to deal with any bs so i could be cash flowing closer to 1000 a month per property. Also if they act up their are plenty of penalties in place and 9/10 have a parental co-sign and high deposits so it hasn't been an issue!

Student rentals with a property manager may be the way to go. $200k-300k usually and pull $500-850  a room in most states. I am in Ga and that's the typical numbers. So easy cashflow potential if you have cash to put down on 2-3. I am averaging $900 a month cash flow on 2 and $500 a month on another smaller one. If i self managed then it would be 1200x and 800 (single fam) or try to find under 5 unit apartments and rent by the room to students. Easy $ and require a co sign for most to keep them straight.

or find a partner that is willing to do the work and bring some $/other value to the table. Plenty of $ to go around even in that space. (especially 4plex if you look in the right areas)

NOT AN ATTORNEY- But my opinion is- No they cannot sue in this situation-- also did you have an expiration on the contract? If you didn't agree to the new terms it is over but he didnt sign anything so it cant even be an amendment to an agreement. if he signed the original agreement and you said nvm then maybe.. depends on the contract!

I own/manage a few care homes in the blairsville, ellijay, jasper, trenton, and other areas. Let's connect! I have a plan to almost double that facilities profits! I'll send you my Proforma i worked up if you send me your email!

Hey Joseph- I am looking to buy that home as well lol give me a call! I have a plan that could be a win win for you! or we can discuss my 3 plans i have been considering!

770.778.0715!! I own 4 assisted living homes in north ga and i am selling 2 of them but to be 100% honest i was going to turn around and sell this one to an investor friend for $60k more than his asking price! (He is willing to do the $50k-100k rehab that it needs to be full and way more profitable!

Investment Info:

Mobile home other investment.

Purchase price: $27,500
Cash invested: $127,500
Sale price: $185,000

Bought the land and put a brand new mobile home on the lot. It was a burnt down home that the owner had to sell (Owner moved in 2014 when it burned - decided to sell it quick in 2020 - I just had to re-grade it, clear a couple trees that grew up since it burned down, permits, permanent foundation so it would meet fha/usda, etc.
Note: I am a mobile home dealer, a realtor, and i have contractors that i work closely with. (how i made enough profit for it to be worth it!+I got the land for cheap!)

What made you interested in investing in this type of deal?

Mobile Homes fill a void in the market. Avg starter home in my market is $250k-350k for something decent. so $165k-200k helps so many people. Hard to find the land but do-able.

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

It was a coming soon listing and i was searching for land actively for this. I couldn't believe it. The best deal I've seen since then was for $30k and it needed 15k of improvements to the land. But on this deal it was listed for $30k and i offered $25k and we met in the middle at $27,500 because i knew it was a steal either way.

How did you finance this deal?

Cash for the land and then borrowed the rest from an investor I've sold rentals to, I was suppose to be a 4 month project max but it went under contract and fell through 4 times so took closer to 6 months but he didn't ask for much- just to cover the interest he had from taking it from a line of credit for >6months.

How did you add value to the deal?

I am a realtor so i saved 3% on both sides of the deal (3% of 185k) I am also a mobile home dealer so i got the home for 10k-15k less than most people can buy for, and it was a hot time of the year (19 offers) I took the highest fha one first but 3 more fell through before i finally took a really solid offer.

What was the outcome?

I made $45k and then did a 1031 for my first rental.

Lessons learned? Challenges?

I trusted a few people to do multiple jobs that semi overlapped and they pointed fingers when a mistake was made. Now i have a couple people doing most of the work and i actually get a better price for doing it this way and they fix mistakes immediately. I am now on my 3rd deal and hoping to do 5-6 in 2021 and 1031 2-3 of them for rentals.

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

I am a realtor and I look for these kinds of deals all the time. I can only do 2 at a time because my personal cash and lender opportunities so i end up selling 3-4 to friends and family and 1 other investor if i am in the middle of 2 deals already.
Andrew Barrett
Pinnacle Real Estate Services Inc (Georgia)