All Forum Posts by: Pyrrha Rivers

@Andrew Syrios I am arranging an inspection to get the rehab estimates and the area is a well established, older working class neighborhood. It is near one of the Atlanta revitalization zones but not quite in it. So much to find out! :) Thank you for making me think about all of this.

@Jon Holdman I hear you. I will be going home to GA in June and it may be a better time for me to proceed. However having this discussion here is helping me consider so many things that will be useful whether I buy now or later. I know I must narrow down the rent and do some exploring in the tax commissioner's web site to find other pertinent information.

Thank you so much!

@Jon Holdman Thank you so much for your tips. I am unable to drive the area because I’m living abroad. My daughter is working with me and lives nearby. She has visited the property twice. Once just to see the area, talked with a neighbor and went back with a Realtor to see the inside. We were just focused on the safety feel of the neighborhood but not on for rent signs. I think your suggestion to take into consideration the number of signs as well as the length of time they are up is an important consideration which I will ask my daughter to go out there again and take note. Getting a handle on the actual rent number to use is crucial at this point, so I will be working on narrowing that down to a reasonable range.

@Aaron Montague I have a line of credit up to $50,00 but will only draw what I need from it. I am hoping to use those funds along with some savings to finance two purchases I want to complete this year. The line allows me to draw funds for 10 years and begin repayment after 10 years and 1 month. However I can pay it in full after 3 years without penalty.

Thank you @Jody Michelson . I have used Rentometer but compared to Craigslist and Zillow the median rent I found was higher so I decided to take the lowest number which was also quite common within the zip code. I will try Padmapper as well. See? something new for me to explore.

Thank you so much!

Thank you @Jordan Thibodeau . Teh square foot calculation is not something I considered before.

Great suggestion.! I'm glad I already knew that as I learn I'll only discover how much I have yet to learn. :)

Thank you all so much for your feedback! I am going back to work on the components you suggest.

@Bill Jacobsen I did suspect the rent range was too wide but it’s what I found on Craig’s list, Zillow and Trulia because I am not local. I’ll go with the low number as suggested by Steve.

@Aaron Montague I will use the detailed expense list and post back.

@Steve Babiak and Aaron, these are the HELOC terms:

Loan amount $50,000

Interest rate 3.75%

Monthly Principal and Interest $231.64

Payment term 3 years

Annual account fee $75 (3 years $225)

Prepayment fee $400

Thanks again for helping me think about this!

Hello All,

I am looking at a property in Decatur, GA and need an inspection to help me rule out any major issues and determine the offer i will make.

I would love to have a contractor who can do the inspection and provide an estimate for repairs.

Can you recommend someone or share how you handle this part of the process?

Thank you!

Pyrrha

Please help me look at this deal. I am getting really close to my first purchase. Have been learning all I can here, but feel nervous about my interpretation of how to analyze a deal and I know many of you can do it with your eyes closed.

Here are the numbers:

Asking price: $36,900

Average rent in the area $650 - $900 I have gathered enough cash from different sources but plan to finance it through a HELOC which requires a payment of $232 per month. No immediate payments, but I want to calculate it all from the start.

50% Rule

$650 rent = $93 cash flow (Not great but close to $100).

$700 rent = $118 cash flow

$850 rent = $193 cash flow

$900 rent = $218 cash flow

2% rule works

$650 rent = $32,500 purchase price

$700 rent = $35,000 purchase price

$850 rent = $42,500 purchase price

$900 rent = $45,000 purchase price

I am using the $650 for my calculations, to look at it from the most conservative angle.

I am going to have an inspection to rule out any major problems and to get an estimate on repairs. That will help me determine my offer keeping the 2% rule in mind.

Am I on the right track? What am I missing? What would you do?

Thank you for taking the time to look this over and send me your feedback,

Pyrrha

Hello,

I am looking for the same information @Diana Florada was seeking in July. Dis you get the people you needed for your team, Diana?

@J Scott , @Curt Smith and @Manesh Hardeo , Can you help me find investor friendly Attorney and CPA in the Atlanta Metro Area?

Thank you!

Pyrrha