All Forum Posts by: Brian Pfiel

@Nick Coons, I was informed by the lender that the lower appraisal would sway the new one. I suspect that this has some merit. Though its hard to see what is in the mind of these appraisers.

@Cory Howes

In my situation I had to go through two appraisers and 4k of improvement to the home. I researched that the property is around 425k but with the right stuff done could be 550k. It was purchased for 289k. The refi appraisal first one came in as 350k. I then switched to a wholesale mortgage supplier and got another appraiser. During that switch I put in 4-5k of improvements to mostly outside for appearance. The new appraisal turned out at 410k.

Through this situation I learned that the document the appraiser uses has at the top an indicator if it is a purchase or a refinance. This make a big difference to the appraiser. Also, another couple sections, one the adjustments can very greatly depending how they want. So if one comp has 1ac land and the subject has 5 they can adjust however they want. Some use a standard others dont. Two, the total rebuild or replacement section is a point of interest. In my first appraisal this section had about 400k with a precentage to the value at only 50% and the second appraisal had 80%. Thus depending on the method they use.

I feel that buyers ultimately drive the price. I am 100% sure I coould have sold it for 425k even without the updates. If it was on the market and the buyer got the appraisal it would have proven but that is my point.

Good luck , i would get another appraisal and small changes to property. Also, dont ever let them know you are appraisal shopping!

@Cameron Braig

Much growth is so on point. This area has little to no rentals and when they do it's not on the market long. Thanks for the positive note!

@Greg Scott

Thanks for the reply, we have a college very close by do you make good point and maybe this setup would be attractive to them. I am going to see about marketing there.

@Nathan G.

Thnks for the feedback. These are good points. I intend to have some balance with my properties doing month 2 month and longer though for me the challenge is getting the right tenants.

I have been doing short term rentals in the north Georgia area. Long story short. Due to unforseen circumstances are now starting leasing/renting yearly the same properties. My question is around unit furnishings. With a unit already furnished from prior short term situation I am curious as to your exp and op on if furnishing is good or bad...your pros or cons here? And if you are open to add/take away items per tenant? One of my big concerns is how would the upkeep of the furninshings be handled?

This did end up as a good deal for us and the second cabin was purchased for 10 bucks!

Had it up for vacation rentals/short term rentals and did OK. Now will be putting them up for long term just need a bit of rehab and getting them full time rent ready. Let me know if anyone wants to help?

Hi, would like to meet up some time with the group. When and where?

I am a new investor and looking to network with others in the Gainesville, Cumming area.

I am in the north Hall area. I have some rental property in Clevelend, Ga.

Investment Info:

Single-family residence buy & hold investment.

Purchase price: $87,000
Cash invested: $25,000

Twin cabins on 1AC lot in mountain community of north Georgia.
Still under rehab process for one of them.
Homes are siting very close together in a wooded lot.
Community provided water service with a single septic for both units.

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

Rental potential in a attractive vacation spot.
Second cabin with no lean and would be owned out right.

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

Used a local agent. Negotiations were based around how they are needing repair.

How did you finance this deal?

regular mortgage with down payment

How did you add value to the deal?

rehab unit and vacation rentals

What was the outcome?

The deal turned out to be in our favor by having the largest unit plus two lots under the mortgage and the second purchased at the closing for 10 bucks! A full cabin for 10 bucks!

Lessons learned? Challenges?

Challenges had to do with units being on a shared septic, not connected together and diff 911 addresses.
Most lenders will not give a single loan with both units under it. The deal turned out to be in our favor by having the largest unit plus two lots under the mortgage and the second purchased at the closing for 10 bucks! A full cabin for 10 bucks!

Thanks for the input folks! Yes, by tax design it is two...I think the point here was financing and future sale. Two separate addresses (though within ~20 feet of each other) were in the original contract with two additional lots.  3 out of 4 lenders would not touch it and one stated it needed to be funded by a commercial loan. In addition to this, anyone purchasing it in the future from me would run into the same complication. I had them redo agreement breaking it out with the highest valued property on one and the rest on the other. 

In addition, upfront I was told by the listing agent you could put both cabins on one address and that turned out to be false.

I called the local planning and zoning department and they were like and why would you try to do this? It makes all the sense to have them as two different addresses since they are two houses and for all the county tax purposes. But for making it on one sales contract it did not.

In my very limited experience, I am still not sure why you could not just add the additional property in the notes of one contract and attach it or something like this keeping this all on one. I think you could do this for a cash only type deal without any banks involved gives that flexibility?