All Forum Posts by: Justen Ashcraft

I know, I’m just ranting a little. Thanks.

My wife and I just listed the last of our sfr’s in Gwinnett County. It’s in a very up and coming neighborhood with a new hospital less than a mile away etc. we listed it below the “Zillow” estated 176k for 169,900. We’ve had plenty of interest, but haven’t accepted anything as of now. My real estate agent says you have an offer at 155 and they want this and that and this... “cash buyer”. I told him not even to respond with this lowball crap. We’ve had full price offers already, but will wait until tomorrow mornings showing to ask for highest and best. I’m not a flipper, but is this how it goes with investors looking to buy an investment property? I guess people will just throw junk out there hoping it will stick. Ye, I do understand that this is what most of us do, lowball, but that’s an embarrassing offer even though the percentage isn’t that far off.

“Pacific Heights”?

What I’m trying to say is that 4% cash on cash is far to tight in an sfr. 4% in a 30 unit is much more likely and stable. The market in Atlanta feels a lot like 2007, you’re going to be buying at the top. Be prepared to lower your rents in a few years if necessary as the Atlanta market will likely be in a housing glut if there is a downturn.

“Vacancy allowance”, and actual vacancy rate are completely different.

Remember that cash flow isn’t always guaranteed in investing. People discussing a 4% (net) return are calculating that with 100% occupancy 100% of the time. 1 month of vacancy knocks that down to 2%-3% pretty quick, and that’s not taking into account any tenant destruction.

I didn’t read all of the op, what broker is he working for?

Do you have any counties or communities in mind in north Atlanta?

Pull the equity out ASAP and let it “season” in your bank account. Try to think ahead when buying your next investment property. Get your DTI in order, make sure to have over $50k in available credit (helps your score) etc.

What grant says makes complete sense. Getting to the point that you can purchase a 16 unit is the issue. If you listen to him at all, you’ll know that he saved money for quite a few years before he bought his first small apartment deal. He had saved $350,000 by that point.