All Forum Posts by: Haley Varner

I have two properties in the metro Atlanta area, one in Athens and one in Calhoun, GA.  Both are leased and stabilized shopping centers with pad sites available.  I'm looking to identify a net lease tenant for a ground lease or build to suite for the sites.  Experienced and connected retail lease brokers please reach out so that we can have an introductory phone call.  Thanks, Haley 

Sorry, I just realized we already saw this one.  Let's stay in touch!  Haley 

Hi - I'm interested to see the property.  We will buy with cash.  Can you call me at 917.544.1127?  Thanks! Haley 

Hi - can anyone recommend Baltimore area portfolio or conventional lenders?  Many thanks,

Haley

Hear you loud and clear - except that I was thinking parents coming to visit students at GA Tech/GA State and potentially corporate housing for long term business travelers.  

Anyone have experience with vacation rentals in Atlanta? I'm going to be in town more over the next year and need a "pad" but don't want to just hold a mortgage. My intuition is that vrbo would work around Georgia tech (my alma mater) and the hip new Howell Mill area (Bacchanalia restaurant, high end retail, etc). Obviously an old brick bungalow wouldn't engender any interest but perhaps something that was hip and funky like a loft or converted warehouse space. I've looked around at what's available on Homeaway in that area and it looks like there's a lot of availability, not many bookings. Any thoughts on this would me most appreciated!!

Would you increase the denominator in the COC return calculation (amount of cash invested) as you pay down principle? Since you are technically more heavily invested as time goes on, with more equity-or cash- in the deal, but your stabilized cash flow stays the same (or increases marginally w rent escalations), your cash on cash return would decrease year over year. So this could be an argument not to pay down your mortgage faster than the amortization schedule mandates. This logic suggests here is a tipping point where you would cease additional pay down above the amortization payment -perhaps once your COC declines below a certain hurdle - for me that might be 12%. Though

This is an old thread I know but question: would you increase the denominator in the COC return calculation (amount of cash invested) as you pay down principle? Since you are technically more heavily invested as time goes on, with more equity-or cash- in the deal, but your stabilized cash flow stays the same (or increases marginally w rent escalations), your cash on cash return would decrease year over year. So this could be an argument not to pay down your mortgage faster than the amortization schedule mandates. This logic suggests here is a tipping point where you would cease additional pay down above the amortization payment -perhaps once your COC declines below a certain hurdle - for me that might be 12%. Thoughts?

Hi - I'm looking to make an offer on a 14-unit in downtown Marietta, GA. Proforma is as follows. At $575k, returns using the below are 17% Levered IRR (assume 80% LTV, 4.5% 360), 12% cash on cash, 1.33% rent to price ratio.

Aside from traditional lender financing, I'd like to make sure I've explored options to put less money down than 20% and potentially find a better rate than at a local/commercial bank.  Therefore if there is an active hard money lender in the area or suggestions for loans that might fit this deal profile, I'd be delighted to discuss.  

I'd also greatly appreciate any comments on assumptions - anything I've left out or where I might be too aggressive.  Thank you BP community in advance for your assistance! 

Haley 

3 buildings, 14 units 

Units	#	Rent
3 BR
2 BR	14	$550
1 BR
Total	14	$7,700
Gross Purchase Price	$575,000
Total Budgeted Programmatic Capex	$30,000
Closing Fees	5.0%
Closing Cost	$28,750
Net Purchase Price	$575,000
Resale Value	$650,000
Exit Cap Rate	9.0%
Hold Period (Years)	5

Revenue	Monthly	Annual
Gross Annual Rental Income	$7,700	$92,400
Other Income (Parking, Pets, etc.)	$0.00	$0
General Vacancy Loss	10.0%	$9,240
Expenses	Monthly	Annual
Fixed
Electricity	$0.00	$0
Water	$66.67	$800
Sewer	$0.00	$0
Garbage	$15.50	$186
HOA	$0.00	$0
Insurance	$415.00	$4,980
Taxes	$448.83	$5,386
Other	$20.78	$249
Variable
Repairs and Maintenance	3.0%	$2,772
Property Management Fees	20.0%	$18,480
Other
Capital Expenditures (Reserves % Gross Income)	3.0%	$2,772
Market Assumptions
Market Rent Growth (per annum)	2.0%
Expense Inflation	2.0%

Hi - unrelated to the above but thought that the people replying here would be a great resource.  A friend of mine owns and resides in a single family home in Regents Square. The home is not subdivided in any way but she has 2 college students renting rooms from her. Neighbors "called in" to the city pressing that she should have to have an Occupancy Permit and associated inspection. It seems to me that since she is just renting the rooms and not commercial, subdivided units, that she could push back on this. Do you have any suggestions?