All Forum Posts by: Cedrick Layton

@Alena Howard Any luck with wholesaling any properties from the Tax Delinquent list? 

I am new to evaluating properties for wholesale. The first property I started working is a multi-unit property located in a very hot area in Atlanta. When I started doing my initial analysis it seems that the value based on the Cap Rate and NOI put the property at a significantly lower value than it's surrounding SF properties. Because I am just working on examples from a list and don't have a deal in place I will share the detials.

Property Address: 642 Seminole Ave NE Atlanta, GA, 30307

Specs: 3 bed 3.5 Bath 

Units: 3

Rentometer for 1bed/1bath in area - $1,236

Gross yearly rent - $44,500

Property taxes - $8,700

Vacancy Rate for Atlanta - 6.1%

Based on these numbers and the 50% rule for expenses, the property value would be around $400k. I used this formula and rounded up to get that figure. NOI/Area Cap Rate = Property Value. If I look at surrounding properties that are single-family properties the minimum for a 3 bed, their value is at minimum $700k. Should these single-family comparables be completely ignored or does it indicate an error in my calculations?

@Rick Baggenstoss When you find these deals on the MLS, are the deals mostly on new listings? I am trying to learn how to spot great deals on the MLS but they all seem like inflated numbers.

@Shawn Smith Great post hopefully someone will provide some contacts. I just visited a property earlier today in the Bankhead area with ground weed everywhere. I can't imagine how much clearing something like that out but I would like to have someone to contact to start getting quotes.

I am new to real estate investing but I have lived in Atlanta for 7 years now and it seems it is a good time to dive into Airbnb and other short-term rental solutions.  With the type of growth Atlanta is experiencing and the Superbowl coming along with other major events, I can see a real opportunity for success. I look forward to hearing what the pros think.

@Marisa R. Did you actually move to Detroit or are you investing from Atlanta? If you are still in Atlanta how are you finding deals?

@Darren Morris Hey, I am also a newbie in the Atlanta market. How did you come across your deals in Atlanta if you lived in Memphis and now Dallas? I need to find a funnel for deals so I can increase my chances of finding that first deal. 

@Rick Baggenstoss Thanks for the breakdown! When I search for homes in the West End area I try to use a minimum of two baths to eliminate some of the older homes. Also, it is difficult to find a decent road with a low amount of boarded-up houses, so I think I will shy away from that area until I get a partner with some experience.

Mcdonough and Kennesaw are two areas I haven't really looked but being from Atlanta I can see exactly what you mean. Both areas should have houses less than 15 years old that require a little amount of work. 

What are your thoughts on Norcross and Lawrenceville earlier?

@Ethan Henning Looking near the Bellwood Quarry development is a great idea. I know when news about new developments comes out it could be a gold rush but I am going to look into it anyway and hopefully, there are some good properties for newbies. If not I will have to find a partner on BP so that I can invest in the area. I think it has the potential to start turning around like the area around the MB stadium. 

I am looking to find some hot and upcoming Neighborhoods in Atlanta for me to start rehabbing or using the BRRR method. I am hearing that the West End and East Atlanta is some good areas to start. Please share your thoughts!!