All Forum Posts by: Chase Beasley

What is the name for the type of loan used to allow the live-in-flip?

Is is a FHA 203k? If so, is there an issue with me purchasing the home and renting out a bedroom while the flip is in process?

All -

I was recently listening to a podcast (and have not been able to find which podcast I was listening to) to where an individual used a specific type of loan that allowed him to take out a mortgage with only 3% down where he lived in the home and rented out a room or a portion of the house. The low down payment allowed for a loan that encompassed the purchase of the home but also construction improvements. 

I've been searching to determine what loan provides this and have not been successful. I thought it was a FHA 203k but am concerned if I can use this and purchase the lower quality home and rent out rooms in it while living there.

Does this sound familiar to anyone?

Thanks

I have Fieldstone as an HOA company for one of my properties and they have been doing a terrible job.

Does anyone have recommendations for reputable HOA companies within Atlanta?

Thanks

Chase

I am no pro when it comes to the nuances with property taxes but I have a scenario that I feel has become an issue with our local municipality.

Scenario: 

An associate of mine purchased a newly constructed home in September of this past year for $700k. He also also purchased the lot next door with an older, small and much less appealing home for $300k. 

There are a few newly constructed homes in the area but most are priced similar to the new home (purchased at $700k). 

Upon reciept of the tax bill, the county appraised the newly constructed home for $1.1mil and the adjacent home for $450k. The appraisal came in much higher than what was purchased. 

Can someone shed light on to what is possible here? To my understanding the property tax appraisal would reflect the purchase price of the home?

@Anjesh Dubey Unfortunately the market has out priced most A & B neighborhoods or areas for under $100k. 

I would recommend Chamblee, Bankhead, Berkeley Park if you're looking for cheaper homes. These areas for appreciation due to incoming development. 

Tenant mixes are dynamic in Atlanta so if you want to rent out, Chamblee may be better. 

@Tim Bergstrom

Tim - Ive been looking at the market and have been wanting to do the same in Nashville but am on a holding pattern now. See this forum for some additional background info:

https://www.biggerpockets.com/forums/52/topics/445747-nashville-and-national-short-term-rental-shifts

@Aaron Spragg

Aaron - what are you looking to do with billboards or what is the issue? 

I was a Professional Engineer for 5 years and actually permitted and managed multiple billboard projects. 

I live in Atlanta but will be in Nashville on the weekends in the coming few months. 

@Jason Bright

Welcome to BP. I am in a similar boat here in Atlanta and have a few properties that I am watching currently after running numbers as well as a large section 8 complex that I am in the process of working on. 

If you are ever interested in a JV or just want to get coffee, let me know.

Best of luck!

@Doug Bryant 

Doug, flips typically come with more headaches and hair than rentals IMO -  so most people from the start slowly get into the industry. 

That said, Im assuming your looking for quicker capital and thusly the flips help with that. 

One thing I would mention is that you dont need to overextend yourself - 2 flips in the next 6 months is a lofty goal from a capital and time perspective. Especially in the current market. 

Dont rush but would love to hear how things work out. Good Luck!

@Chris Bailey

Welcome to BP. That is a very broad question. The health of the Atlanta market overall has been on the better side of things but depending on what type of asset class you are looking at it can range. 

Also Atlanta has numerous 'metro areas' and each acts differently with real estate. The city is 134 square miles so Buckhead and Old Fourth Ward are two separate animals though they are both within the city. 

I would focus on what asset class and what area you are looking at first. 

Let me know if you have any questions.