All Forum Posts by: Brian Ellison

Hi @Zach Chandler, I came across this post from a few years ago. Did you end up purchasing in Blue Ridge? How has been your experience thus-far? 

Investment Info:

Single-family residence buy & hold investment.

Purchase price: $165,000
Cash invested: $30,000

Single family home in a quiet town about an hour east of Atlanta.

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

Four sided brick needed a lot of TLC, previous owner there since the 80’s.

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

Found via real estate agent and negotiated through a company that buys these kinds of properties at scale.

How did you finance this deal?

Finances using HELOC on primary residence.

How did you add value to the deal?

Renovated the entire house redoing flooring, walls, and appliances.

What was the outcome?

Appraised at $230k

Lessons learned? Challenges?

Personally, I found more joy in the renovation and buy/sell side of it than the tenant management. While it’s nice to get the income from the property, it’s more exciting to do the deal.

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

Joey Cole, real estate agent. Very patient and a pleasure to work with!

@Taylor L. Exit strategy is to 1031 into a larger deal within 5 years. Although the CoC return is low today (~4%), I see rents rising in this market. Also, with the medical facility, that's basically a satellite hospital, being completed within one year, I'm also thinking I could rent one unit to traveling nurses to further boost income.

I’m really looking to use this property as a learning opportunity over the next year so I can move into a larger property next. 

Hello - I finally have my first duplex (2b/1.5ba; 1,000 sq ft per side) under contract (market is suburbs of Atlanta). Take a look and tell me what goes through your head when you read it: 

• $405,000 purchase price w/ $25% down - combination of 401(k) loan and HELOC (thanks to crazy appreciation in this market).
• 4.375% on Mortgage rate - About $1,460/month P&I (+ taxes $125/mo + ins $95/mo)
• Management Fee 8% - $696/mo

Knocked on neighbors doors for rent: Range from $800 on the very low end (7 years a tenant) to $1,400 on the high end (newer tenant although no renovations to this unit to make it stand out). At $1,400, cash flows about $300/month - this is the target. 

Neighborhood: 

• Grade A schools, best in the city. Duplex is actually DIRECTLY across from one of the newer schools. 
• Medical facility coming to market <1 mile away.
• Walking path, restaurants, etc. next to property.

I say all the above because I'm looking to renovate this property and attract a higher-end client. Giving this a face lift with new tile, new kitchen counters, dishwasher, and a washer/dryer could go a LONG way, I think. Higher-end 'townhome style' rentals go up to $2,000/month in this area. 

Has anyone gone through something similar? Being the first property, there seems to be a level of risk here although I'm very comfortable with the area. Any suggestions?

Hey @Ernest Partin, congrats on your upcoming move! My family is from the Atlanta area and moved to Boston (Back Bay) for 2 years before moving back home to Atlanta. Just to give you an idea, we had a 1 bedroom, 600 sf apartment in Boston for the same rent as our mortgage on our first home (townhome in the city, 2,200 sf). For about a 10% increase in THAT monthly mortgage, we got a 5 bed / 5 bath in the suburbs... I think you will find the south offers more options for you within a drivable distance. 

Although Atlanta itself is hot, there are many markets north/south/east/west of Atlanta that are real opportunities. Happy to chat more if you'd like!

Hey @Mike Mosby - Thank you! I did decide to pass on this property after driving out to the area and doing more research. While the house ended up closing for $140k in May, I did notice that there's a huge on-campus apartment building that was nearing completion. This on-campus apartment building was boasting similar rents to the $1k/month I'd modeled in an older house off-campus for the same bed/bath/sq footage. My plan all along was to use this for college students, and the long-term strategy there seemed less viable. 

Your question piqued my curiosity and I decided to check in on any active listings on that street.... looks like 3 more duplexes have popped up for sale with many more selling since I last looked over that way. Appears some investors are getting smart to offload properties there!

Hey @Marc Ferguson, another Suwanee resident over here. How is the search going, find a property? Wouldn't mind meeting up!

@Caroline Gerardo thank you! It would be 6 units on the property, which is the maximum number allowed in this area. Currently the property is non-conforming to code, so a change in ownership would prompt this inspection and cause a problem for the buyer, even if it was a cash sale - am I thinking about that correctly?

Hello everyone!

Has anyone been through the process of changing a residential property to a multi-family property? I recently found a multi-family property I've been eyeing is zoned for residential. I would like to write a contract to purchase the property contingent on approval to change the property's zoning (has to go to Board of Commissioners, takes about 60 days). 

Details on the property: 2 buildings, 1 occupied duplex, and 1 non-occupied 4-plex. The 4-plex needs work to get up-to-code, while the duplex is actively rented (both sides). Technically since the duplex is rented today, the property is non-conforming and no other work can be done until the rezoning is approved. 

Thank you!

@Doniel Winter that's interesting about the multi-building properties! I looked at the property on Saturday and it actually faces a main street with extra parking in the rear, so either a business, multi-family property, or single-family home looks like it MAY work. Thank you for the insights!