All Forum Posts by: Evan Yates

Hey @Stephen E.

As others have mentioned, STR is the way to go inside the perimeter or up north in the GA mountains. However, in the Atlanta suburbs, you would definitely want to go LTR since there are a ton of renters in the Atlanta area and a major housing shortage.

Happy to discuss either strategy with you or anything else Atlanta or real estate related while you're in town. Shoot me a message and we'll set something up!

My wife Sarah and I have been talking about doing a real estate rental property for years, and we already own a 3,100 sq ft house that we now have around 140k in equity. We also have cash for a down payment of 20% on a 250-300k house.

We are ideally looking for a cash-flowing property, that maybe we can remodel and hold for at least 2 years to avoid capital gains. 

To note, in the next 2-3 years we also want to build a "dream home" on a larger piece of land (2 acres preferably)

Any advice on how to get over the analysis paralysis of buying a rental? We are pre-approved for a 2.625% conventional 30 year loan.

I like the Arkansas investment market!

When we first started we had a partnership with a mentor who would provide the capital and we did all of the marketing, rehab, and selling. On the long term deals (stuff we were buying to keep as rentals or sell with owner financing) we did tit for tat. So he would front the money, we'd do the fix up and sell and then he would keep one (after reimbursing our marketing and rehab costs) and then we would do the same on the next deal except we'd keep the property (or note). We always kept our companies separate, which I totally recommend because you never know when something could go sideways. Plus it keeps things cleaner from a bookkeeping and management standpoint. We never made it an official partnership since that changes everything especially when dealing with long term holds.

Hope that helps!

@Evan Yates Sorry about that, I responded to Jesse, please see my response below.

There has always been a HUGE demand in these areas. Anytime we get a rental listing south of the Airport, they always go quickly. You usually get more for your dollar south of the city as well. School districts are good, safe communities with amenities, lower taxes, easy access to the highways, close enough to downtown ATL, etc.

Yep WolfStreet had a great article talking about this months ago. Atlanta has the most delinquent FHA loans by number of loans but not overall percentage. This does include people that are currently in a forbearance plan. The original data is from the Black Knight Mortgage monitor report. If you are interested in tracking this you should check out the monthly Black Knight Mortgage monitor report(As of writing this December 2020 is the latest report out, January 2021 has not posted yet).

If you look at the December 2020 report the national delinquency rate has dropped and is trending down. It will be interesting to see how this plays out long term. With the Biden Administration talking about extending the eviction/foreclosure moratorium to September 2021 things could get interesting. This eviction/foreclosure moratorium has put a ton of pressure on supply, we have a huge inventory shortage in Atlanta right now.  

The current report has a great chart showing current # of mortgages in forbearance plan by mortgage type.

As you can see overall FHA/VA buyers have the most in forbearance plans. Most of these forbearance plans expire Q2 or Q3 of 2021 so we will see how this shakes out.

@Jesse Krall  Hi Jesse!  I am super familiar with these areas!  I highly recommend Newnan, Stockbridge, McDonough, Jonesboro, and Fairburn areas.  Great market in these areas and wonderful communities!  Good Luck!