All Forum Posts by: Cynthia Calhoun

@David Begley

Here is the technical (i.e "long answer") to your question:

• "A" Class properties are newer properties built within the last 15 years with the most amenities, highest income earning tenants, lowest vacancies, and will typically demand the highest rents with no deferred maintenance. These buildings are usually owned by Institutional investors and demand the lowest Capitalization Rates (CAP Rates), highest per unit prices, and generally have the most appreciation potential, but lowest cash flow starting out.
• “B” Class properties consist of properties built in the last 15-30 years with some amenities; rents will be a bit lower than the A Class buildings with low deferred maintenance. These buildings demand rents slightly lower than Class A properties, with a mix of white collar workers and more skilled blue collar workers. Class B properties are typically owned by Institutional investors and private investment groups, or very high net worth individuals. They are valued at slightly higher cap rates than Class A properties and usually have appreciation potential with decent cash flow on acquisition.
• "C" Class properties are typically older properties, built 30+ years ago with much fewer amenities, if any; rents are lower than B Class buildings and usually have more deferred maintenance and a lower occupancy rate. Your tenant base will be mostly blue collar service employees, and could have a mix of government-subsidized tenants. These buildings are usually owned by private investors and private investment groups, and provide for higher cash flow and CAP rates, but will normally have much lower appreciation.
• "D" Class properties are older buildings in challenging neighborhoods and potentially dangerous areas. They are older, with no amenities, have high deferred maintenance, functional obsolescence, and the tenant base can be very challenging and very management intensive. These properties will usually have double digit CAP rates and will not have appreciation potential. D Class properties are the most challenging, and definitely are not recommended for most investors, especially new investors. While they might look like cash flow kings, the cash flow is often diminished greatly due to repairs and lack of payment by tenants.

When you look at areas, the classifications are very similar, with the same A, B, C, and D area class as follows:

A – newer growth areas

B – older, stable areas

C – older, declining, or stable areas

D – older, declining, potentially rapidly declining areas

364 Falling Timber Ct, Stockbridge, GA 30281

4 bedrooms, 3 baths - Built in 2003

Tenant: N/A

Condition: 4 (Needs plumbing, cosmetics, has no copper)

Comps: $110-$125k

Asking Price: $85k - If interested, email me and let's talk. Make us an offer.

https://www.dropbox.com/sh/x7d2u050luoc4gz/AAD_8aGQuyJhiVA7pmcpL7-Ba?dl=0

4/3

2 Car Garage

Vacant

Hi Brian and Welcome!

I've had a busy week and somehow missed your original post; but you will undoubtedly find this community quite helpful. I will agree w/ Rick for the most part; however, you will need to be very selective in Mableton. There are pockets (like with most places) where you will not want to invest, because of the time it will take to realize your return. I'm finding good things in Chamblee as well...and don't worry about other investors being afraid of you treading our same waters...we all know there is truly plenty to go around. Don't know if you'd be interested in this, but I know for a fact that "anything" in Sandy Springs is also a great investment, and flips go in a matter of days. Just did one that sold in 6 days! We pulled $29.4k (net) out of that deal, in just 8 weeks. Will be glad to help in any way that I can.

Absolutely, we are! I "almost" feel like sleep is a necessary evil these days. I'm so psyched that I'm "finally" living out my passion, and have learned things that I know will change the lives of those who will listen. Not only do I feel that I'm living my passion, I also believe I'm living my purpose. I now know that I need to teach adolescents and young adults how to begin establishing their legacy much earlier in life. I feel that I allowed my clouded dreams of the corporate ladder to waste so much of my time; and I will always teach a different strategy. I feel that I need to constantly redeem the time, however...I know "all things" happen in seasons of time, and His timing is never late...

@ Clark,

Welcome! As everyone has forestated...wholesaling is a great way to begin. I wish you all the best; and would love to connect. You like ugly houses, you say? I've got plenty of those! Give me a shout if I can possibly assist you in any way; although it sounds like you are definitely doing ok. All the best...

@Bill Manassero...Welcome! 

A special welcome to you!  So...you've made me feel better. I have wanted to do this since I was in college, but took the corporate route; and worked my butt off...believing the hype. Made a good living, and allowed the nice paycheck to defer following my passion. Then I got laid off late in my career...I decided to invest some of my severance to fund my dream. I'm so glad I did. I'm getting started very late in this game; and I find that it is full of talented, young, smart-working, savvy investors. Sometimes, I feel so out of my zone! We will be fine though. I'm enjoying the journey! Hope you do too...

Rush,

I have the resources to partner for the upscale Decatur project. Let's see if/how this can work...

Rush,

I have the resources to partner for the upscale Decatur project. Let's see if/how this can work...

@Oscar...Welcome! 

You'll find a wealth of information here. This is a wonderful group of people who are willing to help. As others have stated, find your niche...and "yes" you will have one. We all probably felt like this..."I "just want to be a RE Investor"! Then we get into it; and realized we hated swinging hammers, and knocking down walls, or we hated dealing with the 3 T's (tenants, toilets, and taxes), or whatever...Remember:

(1) There is no need to "buy yourself another job". That's when you're an entrepreneur, but doing something you don't enjoy. Find out what your niche is, do that (or those) and don't make apologies.  

(2) Applied knowledge is power. Don't be too "Frugal" (Ahem, AKA "cheap") to pay an expert when you need one. If you don't know something, be generous enough to hire a "competent" professional. If you think professionals are expensive, try paying for the clean-up of an amateur. 

(3) Being a RE Investor is "A Business"! Treat it like a business, and it will pay you like a business. Treat it like a hobby, and it will cost you like a hobby. 

All the Best!