All Forum Posts by: Chris Evans

Thank you for your service and great decision-making. This is exactly how my wife and I started out. We purchased a townhome to live in while in college. We went on to do that two more times before settling into a long-term house for our family. Each time we kept the house, rented it, and purchased a new primary. It's been amazing for us, so I encourage you to keep that momentum. 

I compiled this for my database this morning and thought y'all might benefit from the data. 

The market has exhibited a mix of seasonal patterns and broader economic influences. The median sales price saw an increase of 2.4% between March and April 2023, rising from $370,000 to $379,000. This growth aligns with the expected spring surge in demand and represents a 1.9% decrease compared to April 2022.

However, it's important to note that new listings experienced a significant month-over-month decline of 12.9%. This is the largest such drop during a spring selling season since the onset of the pandemic in March 2020. Despite this decline, our overall market inventory has increased 20.1% year-over-year, with 14,061 homes currently available for sale.

Pending sales were marginally lower month-over-month, but notably, they were 19.7% lower than in April 2022. Amid these decreases, market activity remains robust, indicated by a decrease in median days on the market (DOM) to 14 from a multi-year high of 30 in January.

In response to inflation, rate hikes have been implemented to check rising prices. This development has made home purchases more expensive for potential buyers, thereby increasing inventory levels due to Buyers being outpriced. In April, inventory levels held steady at a 2.0-month supply, a 53.8% improvement year-over-year.

Homes continue to sell at their listed price on average, with a sales price at 100% of the asking price. However, the majority of homes undergo at least one price reduction before selling. In April, homes sold at 99.2% of their original list price, up from 98.2% in March. This indicates that sellers are gradually adjusting their expectations to align with market conditions, resulting in a 2.6% year-over-year decline.

The April 2023 real estate market trends underscore the blend of seasonal patterns and the wider economic context. While the market remains active, with new listings and closed sales still happening, volatility in interest rates and inventory levels may signal a shift in the market's dynamics. The increase in Loan-Level Price Adjustments (LLPAs) and the elimination of recent interest rate reprieves add another layer of complexity to the current market situation.

@Josh Young congratulations sir! You have taken the same path that my wife and I started on in 08. Keep it up because it only gets better.

Welcome @Craig Morris! 

You live in some beautiful country!

I'm in the Metro, but have a getaway in Ellijay for our family. N. GA is my home away from home. Best wishes on your journey!

This is a weird section of law. In most areas that I'm aware of if you have more than 4 properties, you are held to the same standards as a licensed professional. This mostly comes into play with fair housing, but it's 10 on the rental side for SD processing. 

The best course of action is to have the tenant present at the walkthrough with your original document for the move-in. Have them sign off on the damage and then they can't dispute the withholding. 

Georgia Law for security deposit withholding is not 30 days. You must complete the move-out inspection and deliver notice of intent to withhold funds within 3 days of move-out. The Tenant then has 5 days to inspect/dispute the charges. The 30-day window is for reconciling your escrow account. 

If you are a professional landlord, have professional management, or own more than 10 units (in your family) then you have different requirements. If you didn't follow the timelines, you may not have a claim to any of the funds. 

If you have fewer units, or are not professionally managed, $400 is not worth the time to go to court. Pay it, drop the suit, and move on with your life. 

Below is an excerpt from the GA Landlord-Tenant Handbook detailing the process for handling Security Deposits at move-out. 

"Security Deposit

Move-out Inspection. Landlords who own more than ten (10) rental units, including units owned by their spouse and/or children, or who employ a management agent, must provide a formal inspection of the unit on move-out or give back the security deposit.

• Within three (3) business days after the lease terminates, or a reasonable time after the landlord discovers you left, the landlord must inspect the unit and prepare a list of all damage and the estimated dollar value of such damage. The landlord must sign the list and provide it to you.
• You may inspect the unit within five (5) business days after the termination. You must sign the move-out inspection list or specify in writing the items you disagree with. It is best for you to be present there at the move-out inspection with the landlord.
• If you agree with the damage listed on the move-out inspection list, you cannot contest the landlord’s keeping the security deposit to cover the damage. Therefore, it is very important to carefully read through the move-out inspection report.

  Deductions from the security deposit. The landlord cannot keep the security deposit to cover normal wear and tear that occurs as a result of your using the property for its intended purpose. “Normal wear and tear” means the expected slight damages that happen over time from you and your family or guests’ ordinary use of the unit. But, the landlord may keep part of the security deposit for:

  • Damage caused to the premises by the tenant, members of the tenant’s household, pets, or guests, that is done on purpose, by accident, or due to careless acts;
  • Unpaid rent or late charges;
  • Unpaid pet fees;
  • Unpaid utilities that were your responsibility under the lease; or
  • Damage to the landlord caused by early termination."

Did you conduct your inspection and deliver notice of the withholding within 3 days of move out?

@Alon A. I've been using Rentec Direct for over a decade. It's a great software that allows me to coordinate all of my tenants and maintenance. Here are a few things to consider when self-managing that you should think carefully about. 

If you are pulling credit you are subject to federal regulations on how that data is stored and how that data is used. There are strict guidelines that you take on the liability of full compliance. You are also held to strict reporting times for adverse action letters, data storage requirements, and safeguarding of sensitive information. This is in addition to all of the Fair Housing requirements that you must abide by when approving/denying applicants. 

Look into Reg Z, Fair Credit Reporting Act, and a slew of other regulations that accompany credit-based decisions. https://www.ftc.gov/business-g...

How long has the property been on the market? What is the opportunity cost for the seller if they choose to sell to an investor? For a deal to make sense, the metrics must align. In an efficient market where the seller has access to reliable data and professional guidance, the property should be selling close to its real value. With rates pushing margins close to zero, the decision often hinges on an equity play over time. If the property is in a livable condition, it might be worth the acquisition to rent for a few years before rehabbing to flip.

The limited inventory is likely to continue pushing values up despite rising rates over the next few years. I would recommend focusing your attention on off-market homes. Approach owners with empathy and the intention to help, rather than fixating on the numbers. If the value is there, everything else will fall into place for you.

Rich Dad Poor Dad in college. Purchased the first house at 22 and at 36 my wife and I now have a book hitting Amazon on 6/2/23. Built our portfolio and now our portfolio is building our future.