All Forum Posts by: Brian Thurmond

Investment Info:

Single-family residence buy & hold investment in Ochlocknee.

Purchase price: $41,900
Cash invested: $72,798

Asking price was $45,955, and I purchased for 41,900, closed with 42K. 3/2, 1859 sqft with 2 car garage.
Update Apr 15, 2020, new metal roof and flooring installed! 23,895 in repair cost for rehab with 7 months to complete. Currently rented at 1250/month. The appraisal initially came in at 135,000 but was downgraded to 124,000. We have financed 75% of the ARV. 93,000 is what we were able to secure. After paying ourselves back the investment of all in at 72,798 we are going to make 24,208.

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

This venture has been a long time coming. I never had the tools until I listen to podcasts on BP and I read David Greene's BRRRR strategy.

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

I found this deal on Realtor.com and it sat for a long time. I did very little negotiation. The original price was 45K. We only talked it down to 41,900.

How did you finance this deal?

I borrowed money from myself to purchase and I used an interest-free credit card for rehab.

How did you add value to the deal?

The value was added by adding a metal roof and lament waterproof flooring. There were cosmetics done, and some repairs to the subfloor, the roof, etc, that scared lots of folks away, but the house had clear value.

What was the outcome?

The outcome was we got every cent my wife and I invested, and we made a few thousand over, as well as fixed up a nice house to improve the value in a nice neighborhood.

Lessons learned? Challenges?

I learned way too many lessons to list, but my biggest lessons were to follow the lessons laid out in David Greene's book. Stray from that valuable insight at your own peril.

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

I cannot recommend a single professional in this deal. Maybe next time.

Investment Info:

Single-family residence buy & hold investment in Ochlocknee.

Purchase price: $41,900
Cash invested: $72,798

Asking price was $45,955, and I purchased for 41,900, closed with 42K. 3/2, 1859 sqft with 2 car garage.
Update Apr 15, 2020, new metal roof and flooring installed! 23,895 in repair cost for rehab with 7 months to complete. Currently rented at 1250/month. The appraisal initially came in at 135,000 but was downgraded to 124,000. We have financed 75% of the ARV. 93,000 is what we were able to secure. After paying ourselves back the investment of all in at 72,798 we are going to make 24,208 on top. 1st BRRRR. We did OK.

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

This venture has been a long time coming. I never had the tools until I listen to podcasts on BP and I read David Green's BRRRR strategy.

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

I found this deal on Realtor.com and it sat for a long time. I did very little negotiation. The original price was 45K. We only talked it down to 41,900.

How did you finance this deal?

I borrowed money from myself to purchase and I used an interest-free credit card for rehab.

How did you add value to the deal?

The value was added by adding a metal roof and lament waterproof flooring. There were cosmetics done, and some repairs to the subfloor, the roof, etc, that scared lots of folks away, but the house had clear value.

What was the outcome?

The outcome was we got every cent my wife and I invested, and we made a few thousand over, as well as fixed up a nice house to improve the value in a nice neighborhood.

Lessons learned? Challenges?

I learned way too many lessons to list, but my biggest lessons were to follow the lessons laid out in David Green's book. Stray from that valuable insight at your own peril.

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

I cannot recommend a single professional in this deal. Maybe next time.

J. Mitchell is correct. The crime rate is a little better on the Westside however, people still get shot on that side and theft is terrible. Parts of the county will have less over-all crime because it is out of the way for most criminals. The local news sources do not really report the extent of the crime, but there are Facebook groups that track Albany and Dougherty crime. I do not know the name.

There are good deals and strategies to be had in Albany. What J said about appreciation is very accurate. I think that, in Albany, it is risky to buy for appreciation. A large portion of the taxpaying base has fled for greener pastures. You can see the population changes since 2008 online. 

An hour away South is Thomasville, and an hour away East is Tifton. Both are doing well.

Thank you for your reply. Much Appreciated. The lender I have spoken with is not up-to-date, but I would like to know specifics. I also know that lenders choose what they wish. I like knowing how to ask.

My question is in regard to what the government secured loans define as suitable. The property is three structures. One duplex that is 3/2 on each side. Two single-family that are both 2/2. They are co-located but wired separately. There is a space between each structure. 

This is not a traditional quadruplex or fourplex etc. I want to know if it can be treated as a quadruplex if all are purchased together. As I said, they are not attached,

My question is this: would someone know what rules and definitions FHA and HUD (where to find, a link to would be fantastic and greatly appreciated) apply to FHA financing?

I would claim one of the units as my primary residence and rent out the others. I am looking for a non-commercial loan, with a lower interest rate, lower down payment percentage, etc. 

Maybe someone knows a post or blog on BP that addresses this very question, or a link to the reference information. I had no such luck finding anything in regard to the above. If anyone would be so kind. Thank you.

Sir,

Thank you! I like Tifton to the East. It is up and coming, has the I-75 running through, and is not making the same mistakes that Albany is making. I also like Valdosta...lots! Along the 75, if most places get out of their own way, they do pretty well. I do not know the area as well, but I like it. 

I like South of Albany in Thomas County. I specifically like Thomasville because it is only 30 minutes or so to Tallahassee, FL and all that entails. Thomasville has turned their downtown into a lovely place to visit. The schools are OK, and the crime rate is a good bit better than Albany. 

Albany was the biggest little town around for many years, but it has lost its way. I would buy and hold in Albany (not expecting much in rent or appreciation). I will own about three or four properties by default, and inheritance someday, but I would be willing to buy on the Avenues if the price was right. I believe it could turn around, but it maybe 10 years or more before it does. 

Originally posted by @Gabriel Chavez:

I'm not from Albany but I am interested in the area. Where do you see Albany heading in the next 5 years? 10 years?

I posted this a few hours ago on another thread:

I was born and raised in Albany Georgia. There is very little appreciation in Albany, GA. A very large portion of the tax base has left and moved to lesser taxed surrounding counties. Albany, at one time, was a very up-and-coming city. It lost half of its population after 2008. I believe that it was once around 130,000 people and now it is around 75K. There is some industry in Albany, namely, Miller Brewing, Proctor & Gamble, and a small Marine base. One of the largest employers n Albany is a regional hospital, that is about to get some serious competition from the county just to the North, that has a much better school system, and is where a large portion of people who work in Albany live.

In my opinion and through observation, most people who have children prefer to live in the surrounding counties because of the school systems, while still not great, but easily better than Albany's schools. This is all verifiable info.

I am a new investor, being from Albany, I wanted to find something, I still do, but I saw better opportunities a few counties in every direction from Albany, with better appreciation, better ROI, and other factors.

In my opinion, right now, there seems to be a surplus of inventory for sale however, the prices are set a little high.

This was taken from the USA today. https://www.usatoday.com/story... These are the worst cities to live in America. Is yours one of them? Samuel Stebbins and Grant Suneson, 24/7 Wall Street Published 6:00 a.m. ET Feb. 7, 2019 | Updated 11:12 a.m. ET Feb. 7, 2019
27. Albany, Georgia
• Population: 74,892
• Poverty rate: 33.2 percent (top 10 percent)
• 2017 violent crimes per 100,000 people: 1,130 (top 10 percent)
• Median home value: $101,000 (bottom 25 percent)

"Albany, Georgia, residents are more likely than most Americans to face financial hardship. Nearly a third of the city's population lives below the poverty line, one of the highest poverty rates in the country. The city's median household income of $31,843 a year is well below the U.S. median of $57,652.

There are likely many factors that contribute to low incomes in the area, though one of the most significant is employment. Across the United States, employment increased by 6.1 percent from 2012 to 2017. In the same time period, employment in Albany fell by 4.0 percent. Albany also has a five-year unemployment rate of 9.7 percent, more than double the 4.1 percent U.S. unemployment rate during that same time."

In 2018 Albany was the 7th worst

7. Albany, Ga.: "The populations of several cities on this list are shrinking, but few are losing residents as fast as Albany, Georgia. In the last five years, Albany's population declined by 4.8%, even as the U.S. population expanded by 3.7%. The falling population is likely attributable in part to bleak economic conditions. Some 32.5% of city residents live in poverty, more than double the state poverty rate of 16.0% and the U.S. rate of 14.0%."
https://www.usatoday.com/pictu... worst cities to live in Sep. 26, 2018

There is an opportunity in Albany, but there is little appreciation right now. I do not know how it will be in the future. I would call up a few of the local property managers to see what they think. 
I would also do this for rents. The rents in Albany are not all that great either. However, there are some good opportunities to be had.

I hope that this helps.

Noah Roofing Solutions is a general contractor and they are very versatile. I use them exclusively. They are currently rehabbing a rental home of mine that needed extensive repairs an hour South of Albany. 

https://www.facebook.com/pages/category/Contractor/NOAH-Roofing-Solution-260405834579616/

I was born and raised in Albany Georgia. There is very little appreciation in Albany, GA. A very large portion of the tax base has left and moved to lesser taxed surrounding counties. Albany, at one time, was a very up-and-coming city. It lost half of its population after 2008. I believe that it was once around 130,000 people and now it is around 75K. There is some industry in Albany, namely, Miller Brewing, Proctor & Gamble, and a small Marine base. One of the largest employers n Albany is a regional hospital, that is about to get some serious competition from the county just to the North, that has a much better school system, and is where a large portion of people who work in Albany live. 

In my opinion and through observation, most people who have children prefer to live in the surrounding counties because of the school systems, while still not great, but easily better than Albany's schools. This is all verifiable info.

I am a new investor, being from Albany, I wanted to find something, I still do, but I saw better opportunities a few counties in every direction from Albany, with better appreciation, better ROI, and other factors.

In my opinion, right now, there seems to be a surplus of inventory for sale however, the prices are set a little high. 

This was taken from the USA today. https://www.usatoday.com/story... These are the worst cities to live in America. Is yours one of them? Samuel Stebbins and Grant Suneson, 24/7 Wall Street Published 6:00 a.m. ET Feb. 7, 2019 | Updated 11:12 a.m. ET Feb. 7, 2019
27. Albany, Georgia
• Population: 74,892
• Poverty rate: 33.2 percent (top 10 percent)
• 2017 violent crimes per 100,000 people: 1,130 (top 10 percent)
• Median home value: $101,000 (bottom 25 percent)

"Albany, Georgia, residents are more likely than most Americans to face financial hardship. Nearly a third of the city's population lives below the poverty line, one of the highest poverty rates in the country. The city's median household income of $31,843 a year is well below the U.S. median of $57,652.

There are likely many factors that contribute to low incomes in the area, though one of the most significant is employment. Across the United States, employment increased by 6.1 percent from 2012 to 2017. In the same time period, employment in Albany fell by 4.0 percent. Albany also has a five-year unemployment rate of 9.7 percent, more than double the 4.1 percent U.S. unemployment rate during that same time."

In 2018 Albany was the 7th worst

7. Albany, Ga.: "The populations of several cities on this list are shrinking, but few are losing residents as fast as Albany, Georgia. In the last five years, Albany's population declined by 4.8%, even as the U.S. population expanded by 3.7%. The falling population is likely attributable in part to bleak economic conditions. Some 32.5% of city residents live in poverty, more than double the state poverty rate of 16.0% and the U.S. rate of 14.0%."
https://www.usatoday.com/pictu...

50 worst cities to live in  Sep. 26, 2018

I hope that this helps.