All Forum Posts by: Joshua Austin

@Howard Gale There are several factors that go into pricing and it would be good to find a few other comps. I would always price it a little over what you really want. If it’s too high people won’t bother looking so make sure it’s reasonable. Also, read Chris Voss’ book “Never split the difference.” In it he talks about the emotional side of negotiations and how you want people to “feel” like they are getting a good deal. 

@Jamie Spitale You can certainly get $1300. On a nice single family rental around 1300-1500 sqft that is definitely doable. I have a rental coming available soon in South Guyton that is 1300sqft that I plan to market at $1295.00 per month. 

Rincon, Pooler, Springfield, & Guyton are areas outside of Savannah to look into.

@Mitch Messer We can manage a Lease/purchase. In fact we had one last year that we helped put together. We do not manage STR's. I know there are companies who do both but we have found our niche in long-term residential and that is where our expertise is.

Robb Dickerson with Half Moon Homes may be a resource.

I'm obviously biased because I hang my license with them but Frank Moore & Company manage my rentals. The property management department is amazing! We have averaged less than a 3% vacancy rate over the last 6-9 months and have had ZERO evictions across our entire portfolio of 200+ properties in the last 7 months and counting. That means we have a 100% collection rate in the last 7 months. We also do Asset management for our of state/country investors.

We manage a couple of hundred units in the Savannah market. Returns can be great, especially for our of state investors. My first investment property I purchased last year is cash flowing $400 per month and is giving me a 14% COC return.

I would be happy to answer any questions you may have about Savannah. 

Investment Info:

Single-family residence buy & hold investment.

Purchase price: $48,800
Cash invested: $23,500

This was an off-market deal that one of my team members found. The seller owned three of these condos and wanted to sell. We put together a package deal with assignment clauses for $151,500 (including buyer commissions). We then assigned one to me, one to my team member, and one to a previous client. My team member and I (both licensed agents) then negotiated our commissions out of the deal to drop our purchase price to $48,800.

What made you interested in investing in this type of deal?

We manage 45 of these units already as well as the Association itself. I knew the returns and the value going into the deal.

How did you find this deal and how did you negotiate it?

We found it by filing dispos at the courthouse. The owner of one of the units was there and a conversation gave us the lead. We spent several weeks negotiating down from $55,000 per unit to $151,500 for all three units.

How did you finance this deal?

Local credit union. Commercial loan. 25% down, .5% origination fee, and a $400 appraisal fee. I currently pay $252 per month for the mortgage and $200.00 in HOA amenities (this also covers insurance) for a total of $452 per month in cost. The entire condo has been renovated so I don't anticipate a ton of maintenance cost in the coming years. That being said, after taxes I anticipate around a $400 per month cash flow.

How did you add value to the deal?

I completely rehabbed the unit and spent about $10,000 doing such.

What was the outcome?

I rented the unit for $895 per month and plan to hold onto it for life.

Lessons learned? Challenges?

Rehab costs were more than predicted. Once knocking out cabinets and vanity I discovered mildew which lead to removing and replacing Sheetrock and insulation. I also learned to not take on this type of rehab costs while your wife is 39 weeks pregnant. haha

Did you work with any real estate professionals (agents, lenders, etc.) that you'd recommend to others?

I am an agent so I negotiated the deal myself along with a team member in my office who purchased one of the other two units.

Investment Info:

Single-family residence buy & hold investment.

Purchase price: $48,800
Cash invested: $23,500

This was an off-market deal that one of my team members found. The seller owned three of these condos and wanted to sell. We put together a package deal with assignment clauses for $151,500 (including buyer commissions). We then assigned one to me, one to my team member, and one to a previous client. My team member and I (both licensed agents) then negotiated our commissions out of the deal to drop our purchase price to $48,800.

I spent $10,200 completed renovating my property and we got a tenant in there for $895 per month.

Financing: I used a 5 year commercial balloon note to purchase the property. 25% down, .5% origination fee plus a $400 appraisal. I came out of pocket for all of the repairs.

I currently pay $252 per month for the mortgage and $200.00 in HOA amenities (this also covers insurance) for a total of $452 per month in cost. The entire condo has been renovated so I don't anticipate a ton of maintenance cost in the coming years. That being said, after taxes I anticipate around a $400 per month cash flow.

What made you interested in investing in this type of deal?

We manage 45 of these units already as well as the Association itself. I knew the returns and the value going into the deal.

How did you find this deal and how did you negotiate it?

We found it by filing dispos at the courthouse. The owner of one of the units was there and a conversation gave us the lead. We spent several weeks negotiating down from $55,000 per unit to $151,500 for all three units.

How did you finance this deal?

Local credit union. Commercial loan. 25% down, .5% origination fee, and a $400 appraisal fee.

How did you add value to the deal?

I completely rehabbed the unit and spent about $10,000 doing such.

What was the outcome?

I rented the unit for $895 per month and plan to hold onto it for life.

Lessons learned? Challenges?

Rehab costs were more than predicted. Once knocking out cabinets and vanity I discovered mildew which lead to removing and replacing Sheetrock and insulation. I also learned to not take on this type of rehab costs while your wife is 39 weeks pregnant. haha

Did you work with any real estate professionals (agents, lenders, etc.) that you'd recommend to others?

I am an agent so I negotiated the deal myself along with a team member in my office who purchased one of the other two units.