All Forum Posts by: Chase Beasley

@Mat Farmer Yes it is not geared toward all properties but the language you're dissecting is merely a formality. 

The STRP has added another dimension to the possibilities of investing (other than your typical flipping and buy-hold) and it is unfortunate to see the legislation come to fruition. Or at least head in that direction.

Hopefully other cities to do not follow. 

An excerpt from an article I read today for Nashville regarding the time-frame of the affect of the legislation:

"The measure would immediately halt new permits for this type of short-term renting and eliminate existing permits over the next three years for this same type." 

I have been following the Nashville Short Term Rental Phase-Out Bill closely as I have been looking to invest in a buy-hold property to cash-flow using the short term rental companies (AirBnb, Vrbo, etc.) I am becoming concerned over the legislation specifically, in this market, as I would not invest given the bill passes but nationally as well. I am concerned that should this pass, other cities may follow suit (not all but some). 

I understand Texas State Legislation has denied the bill but I was wondering if any other members within cities in the Southeast are privy to the phase-out picking up steam in their area?

@Rodney Marcantel Nice work. I second the notion of trying to see what the rehab costs were by line item to see how much you saved overall by doing the contracting (or 70% of it) by yourself. 

Amazing timeline given the extent of work. 

@Bernetta Waller I use land engineering out of McDonough GA. They do work in Metro Atlanta and provide quality work. 

Mitch Paulk is the principle - just ask for him or Brian Douglas.

@Bridgette Roberson What type of insight?

@Curt Smith I think you have missed the point as I do not feel in any way that the 'sky is falling' especially with Real Estate in Atlanta. 

What I am trying to exude is the fact that, in my backyard, I am familiar with the deals that in place. I also understand what is currently popular and where prices have been driven up due to the familiarity of how popular some areas are or may become. 

That said, simply cashflowing $60k homes (that are appraised for much less) is not a specific niche and will be challenging given the current market. 

@Account Closed 

http://www.investopedia.com/terms/d/distribution-waterfall.asp

@Ivan A. I would not recommend assuming the construction of the remaining portions of the Beltline will provide even a fraction of the benefits financially as the Inman park / Reynoldstown areas. This pricing 'explosion' (not implosion) was due to a perfect storm of variables and more the reason why the Beltline committee chose that specific area to construct first. 

The constructed Beltline area as it stands has always had phenomenal walk-ability and has above average public schools for Atlanta which is why gentrification has happened so rapidly. The crime scores and areas that have been 'rougher' were much smaller in size as well.

The south-western portion of the Beltline has already had investors over populate the market. Residents understand what is going on and over the past 1.5 years, home prices have doubled while rent values remain the same. This area will be extremely hard to cash flow a portfolio positively. It will also be at least 3 years until the current Inman park Beltline portion connects to the south western Beltline where Stream Reality Partners is development the beer gardens. There will be a large gap in this area as gentrification tries to take hold yet rents will not rise - it would take a massive effort in a demographic shift to have a resident willing to pay rents that match some of the home prices that are now popping up. 

The true portion of West Midtown where Westside provisions does not scare investors away. There is a huge lack in SFR in this area (unlike Inman) and thusly multifamily has been taking off. The construction of the Beltline is far out in this area but I do think it is poised for the biggest growth aside from Inman.

The areas around the Dome have been purchased for the past year and probably provide your best option for cash flowing for 8 years IMO. I would recommend looking in this area as most of our clients try to do what you are doing and it sounds great in theory but in practice its much tougher given the fact that everyone knows Atlanta has a hot market. 

Regardless, good luck and hope you find what you're looking for!

Hello all -

I have been in the development realm for a few years and am looking to make my first investment within the Southeast but am slightly weary to the time required to begin with rentals. 

That said, I have many friends who are investors, restaurateurs, bar owners etc and have had great success in growing their restaurant, bar or investment portfolio by completing waterfall distribution models and attaining private lending. 

I have just finished building out a thorough distribution model of attaining a small portfolio of homes to flip but was wondering if anyone has pursued this avenue by way of renting?

I also have more legwork to do in having my attorney help with private lending requirements etc. but was wondering if anyone has had success with this type of avenue or if it is something that would be advised not to do from the start. 

Thanks

Chase

@Jared Sturm 

Count me in for the April Meeting.