All Forum Posts by: Josh Bowser

Hey Trevone - house hacking is definitely the best way to get started for a multitude of reasons. 

House hacking a multifamily in ATL is doable, but it is very competitive depending on your location / price point.

Have you considered house hacking a 3 or 4 bedroom house? It's less ideal, but definitely more obtainable in this current market. 
 

Hey Suraj - 5.5 is likely not a great ingoing cap rate here. You're going to need a lot of additional capEx to meet proforma revenues, and proforma cap rates are inflated as they include fixed operating expenses and do not have property management expenses accounted for. Not sure what local lenders are offering for rates on these MHPs, but in GA we are seeing Prime + 50bps at minimum with 10-15% of the loan value in deposits. 

Granted, this looks like it has some stick built housing / duplexes on the property which would drive the cap rate lower.

Are you planning on self managing? Do you have any connections with local CUs / banks that could get this loan done?

Hey Phillip - you can likely find something in the following areas:

Austell, Lithia Springs, Douglasville, Stone Mountain, Decatur, Riverdale, Conley, East Point, College Park.

There is enough inventory at current levels for an investor to flip a few deals that are on market.

Hey Clay - welcome to BP. It's a pleasure!

I'm based out of the ATL. Let me know if you have any questions - happy to help wherever I can!

Hey Kevin - it seems like you might be in a position to talk to someone in the 1031 and NNN space to see what your options are on that front as well.

You're situation has me interested, I'm going to send you a message.

Hey Joe,

I love the hustle and congratulations for being in a great position!

The one thing that you are missing in the post is the seller situation. Ex:

1. Why is he selling?

2. Does he need the money?

3. What is he going to do with the money?

If he is not willing to take those offers initially:

You need to make your offer more advantageous than for him just to go to the market and cash out. The one thing when dealing with friends in a situation like this that they have an open line of communication with you to request for their money back sooner. Can you offer him 20-30% more money over a 20 year period than he would otherwise receive if he went to market? For example, even if you offered him 180k at 0% over 20-30 years you'd likely be better off than getting a loan at 140k in this current market and he's gonna like the idea that he sold his property for way more than it was worth.

If this is a significant amount of money for your friend, it is likely that something will come upas 0%-2% interest for 20 years is a great advantage to you in this case.

If this is not a significant amount of money for your friend, and he is willing to take those offers because he wants to help you get started - you're probably good as long as you have a legal contract in place!

Hey Lauren!

House hacking in the area you plan on living in might be the best option if you can find something at your price point. There are lots of reasons for this, but primarily because it's a tax efficient way to subsidize your living expenses and owning in the market you live in is a better way to hedge against cost of living hikes in your particular area. Instead of buying a duplex, could you find something that is in your price range where you can rent out the existing rooms in a 3bd or 4bd house?

With that being said, you can still subsidize your cost of living with a property in Atlanta that helps pay for your rent in LA. However, to have strong cash flow within Atlanta, you would need to put a good chunk of change down on the property. With current rates, rents, and prices most properties aren't cashflowing strongly after taking vacancy and repairs into account with long term rentals. 

We are seeing the rent by the room strategy work effectively in Atlanta right now to increase revenue and cashflow. Happy to chat more about the Atlanta market - feel free to reach out!

Hey Annette, just saw one quoted for an Atlanta BRRRR at 9.5% this week @ 70% LTV. Could you buy 2 and get conventional financing instead? Or do you need to hit 3 properties for a certain loan amount on the 1031?

Hey Michael - great story and congratulations on becoming a Dad! 

I'll reach out to you in the DMs

Hey Mackey - congrats on taking the step! 

Have you nailed down which asset class you're going to go after?