All Forum Posts by: Arylle Young

Thanks Robin! Good to know I'm taking the right things into consideration.

Hey Community!

I am trying to decide between 3 properties here in Atlanta to do an Airbnb arbitrage but I'm trying to figure out if each property is a clear deal or am I forcing deals by thinking I could decorate them and command a higher occupancy.


Would love some insight. Especially in the Atlanta market. There are so many different parts of "Atlanta"!

Here's what AirDNA says:

Property 1 3BR/2BA with an in-law suite in a vague part of northeast Atlanta
- Occupancy Rate 57%/Average Rate $222/Rent $2,795

Property 2 is a 2BR/2.5BA closest to West Midtown, but it's not walkable to anything

- Occupancy Rate 48%/Average Rate $148/Rent $2,850

Property 3 is a 4BR/3BA in deeper west Atlanta 

- Occupancy Rate 49%/Average Rate $322/Rent $3,300

I think I could increase occupancy and even nightly rate by giving them a specific theme and taking professional photos. 

Also, I would be staying in one of the rooms or in-law suite so I know that would change the numbers a bit, but I'm not sure how much to factor that in. 

If you need more context about each deal shoot with any and all questions!

Thanks for your help!

@Erik Estradathanks for the context. It sounds like the selling my condo would be the best option. That is what you mean by cash out correct? 

@Sean Richards.  Thanks for pointing that out. I have not been to the property in person to evaluate the parking situation.

Also, to be honest, I would love to have the budget to demolish the whole thing instead of adding to it. 1948 is very old and didn't hold up so well, but again, that's my newbie perspective. 

@Michael Dumlerthanks for your feedback!  I wasnt sure if it was wise to make an offer that low, based on the numbers,  but I definitely don't want to insult the seller. 

I'll be using the proceeds from the sell of my condo to fun the investment (Either cash purchase or finance). 

I'll look into the Fannie Mae's HomeStyle Renovation loan you suggested as I'm open to whatever creative financing options I can leverage. 

However, I would have to pass on it if I have to put in $100+ to rehab on a $292k property.

Hello everyone, I would love for you guys to jump in and analyze this deal with me!

Location: Center of Atlanta. Near the Mercedez Benz Stadium - Probably a C neighborhood

Property Details: 

4 Unit Fixer Upper 

All  units are 1BR/1BA with living room and kitchen

No HVAC

Brick exterior

Built in 1948

Asking Price: $292,000

Offer: $220,000

Rehab?: Absolutely! I'm estimating $50k to start with. (it may need to be completely gutted. Newbie eyes)

Rental Income Estimates:

With 3 - 12 month Leases, (~$900/mo) I would CF about $453/mo

However, I could airbnb 3 units and bring in ~$1,350 with 50% occupancy which would CF about $1,288/mo

Other considerations: 

My concern is that it really is a fixer upper and its in a C neighborhood. I believe the value would increase with it being so close to the Mercedes Bens Stadium but its not very close to anything else of interest.

With it being so old (1948) and really needs some work, I'm wondering if I should offer $150k so that I could use more of my cash to renovate the property.

I'll include a photo so you can see the exterior. If you have clarifying questions, Shoot! Otherwise, I'm open to all comments.

Thanks for your participation in advance!

Hey There! I've been focusing on finding deals in the center of Atlanta. There seems like a lot of deals there.

Anyone familiar with successful investors in that area?

Hello everyone! I recently watched episode #788 of the BP Real Estate Podcast, where Lamon talks about how his bank applied the equity in his first property to fund his second property.

In summary (from what I gather):

-He purchases a home that at 80% LTV (cash).

-When purchasing a new home, he takes out a line of credit to cover the down payment.

-After the seasoning period is up on the second home, he refinances the property and repeats the process.

My questions are:

- Is this process essentially whats called taking out a HELOC? or is Cross Collateralization different?

- Is the bank willing to use the equity in the first home because its paid off or would this strategy also apply to a home that is still being financed?

My situation: 

I currently own a condo where the loan is $159k and the estimated appraised value is $273k. Its on the market for $295k. Instead of selling my condo to purchase a second property, could I use a HELOC to fund my next property? In that case I could use the cashflow from the second property to pay the mortgage on my condo.

Please ask me any clarifying questions if you need more context.

Thanks!

Arylle

Thanks For your post Ben! Since your post is about 6 months old in wondering how you and your wife are getting along. What did you guys decide to invest in? 

I'm in a similar situation, however I'm thinking about selling my current house to start house hacking before the baby is born. 

Would love to hear your update!