All Forum Posts by: Greg Moritz

I'm skeptical of the idea that there is no rehab or deferred maintenance needed.  Have you looked at it in person or had an inspector/contractor take a look?  

Also, is this a condo? If so ensure that the HOA has sufficient reserves to not trigger a large special assessment. Also are you going to managing this yourself or having a PM? If you plan to scale up to more properties than you can manage you should factor in PM costs now.

More info is needed to really analyze the deal.  Does the house have hidden problems?  Have you been to it?  Is it in an area that attracts renters?  How did you determine the value of the home and the approximate rental price?  What are the taxes on the property?  Have you factored in other costs like closing costs?  Is this property local?  Would you be managing it yourself?  Do you have experience in managing rehabs?

On the surface this seems like this might be attractive, but you really need to do a full analysis to know if it's worthwhile. 

Hi Brian,

I'm Atlanta based, but am in the Bay Area pretty often for work and have helped a bunch of my coworkers out there (I'm a Googler) get started investing in Atlanta.  PM me if you have any questions or want to learn more about the market. 

(the work friend appears!)

Hi Dave! 

Nice to see you here!  Your goals are awesome!  I have 0 doubt that you'll reach them.  Your first deal is a very solid one and I look forward to doing some deals together in the future.  

Hi Maggie!  Welcome to the community!  Seems like you are starting out just like I did.  Read all of the things!  Gather as much data as possible!  I like to see other like-minded investors.  A desire to learn and a strong work ethic goes a long way.  

Make sure you also have a healthy dose of skepticism.  One of the recommendations in here has some..questionable reviews online.  Be careful about who you do business with.  

Oh, I love to find problems.  I won't buy a perfect property, there's no money to be made.  On the other hand, I won't put tenants anywhere that I'd be worried for my own safety.  I'm very comfortable in the city and most of my properties are there, but there's a difference to me between run down low income and the bad side of war zone.  

Hey BP!

Had an interesting experience today that I thought you might enjoy hearing about. The kind of thing I could never have imagined before I started doing this. So, my favorite agent called me up about a quad.  In pretty rough shape and needs a rehab, but the numbers look great. On sale for $80k. Likely rent for $700-$750 per unit once it's fixed up.

So, we go to check it out and everything about the property is about as expected. Full rehab. Contractor we bring with us says about $60k worth of work. I assume $80k, because I like to be pessimistic with my numbers. So, everything so far looks good. 2800 month rent on 160k, all in, using very conservative numbers.  Not mind blowingly good, but not bad at all IMO.  

There's just one thing. The neighborhood. Now, I'm used to buying C, C- properties but this is something else. Across the street and down a couple houses there's about 6 or 7 people gathered hanging out. And it is loud. Lots of yelling. First, the dog escapes and this admittedly adorable pitbull starts running around the neighborhood. Followed by his owner, a mid-20s girl who seems to be more than a bit high. So, while that's going on I hear more screaming from that gathering. That's when one of the neighbors picks up a giant wooden board and just starts smashing the windshield of a car parked across the street. Over and over he just winds up and slams the board into it.

Before we leave, one of the women from that house comes up and asks us about the property. In the process of asking about the rent she mentions that might not want to live in our place because she doesn't like having to pay her bills...

So... yeah. Passed on this one even with the great numbers. :) 

Hi Asia,

I'm always looking to network with others locals.  Would love to hear about any deals you come across.  Send me a PM and let's have a call.  

I'm inclined to agree with most of the above.  That sounds like a good deal on property management (assuming they do a good job).  The deal on the property itself seems decent.  The agent fee seems ridiculous.  Very unusual.  I think they saw some out of town money and decided to take advantage.  

@Caleb Heimsoth On multi-units?  Could you PM me the names.