All Forum Posts by: John Corum

Hope this post find you all successful and happy. I recently purchased my primary residence in South Georgia. With the property came an additional 5 units and 50+ acres. I knew nothing of real estate, but my math told me the extra income would pay my mortgage and then some. I did the deal and now I have found that I am in love with real estate, cash flow, math, and bigger pockets, lol.

Having paid cash for the plat with the 5 units I am planning on getting a HELOC to purchase more deals. I am located in the Vidalia GA area and wanting to get to know other investors in the area.

40% includes tax, insurance, repairs, management. Supposedly there is never a shortage of tenants as this is a college town and also walking distance to a Chick-fil-A and Lowe's so it's a B class neighborhood. Units have washer dryers but no dishwasher, and I would put in flooring slowly as tenant moved out also I would put new siding, roof and black top over concrete parking lot.

Okay, I am looking at a deal where the seller is asking $455000 for a 13 unit slightly distressed apartment building. Currently bring in $6000 a month. The area cap rate ranges from 7-9%. In my numbers I am using a conservative 40% expenses mainly because I have no other information on the property. I come up with an 11% cap rate. Is this a good deal, I feel it is. Also should I still offer 20% less than the asking price? 

PS, it is owned free and clear but I don't think the guy will go for a lease option or hold first mortgage.

Buy a 12 unit motel for $260,000 also comes with a manager suit so 13 units and convert into apartments.4 are made into extended stays with kitchenette. Take the remaining 8 units and convert into 4 units. All in, including 20% down on loan $132000.

4 Reb units 650 a month

4 existing extended stay 595 a month

1 master suite 725 a month

40% expenses = $27475.20

NOI= $41212.80

Cap rate now 12%

How in the hell is it possible that this property is now worth $2,833,333.33

Am I missing something, is this correct?

I mean the total price after rehab plus asking price is 340000. I'm so confused, if I lower the cap rate it makes worth even more. If I make the cap rate 50% I've still doubled my money. Either I'm a moron that thanks I know what I'm doing but im completely screwing this up or I'm a freaking genus and need to jump on this like stink on ****?? HELP!!!

What are some thoughts from Georgia investor's on the market from Macon GA to Savannah along I-16. I will be moving to Vidalia in July and want some opinions. Also are there any good meet up networking groups along the route? Thank you in advance!