All Forum Posts by: Kalim Kalla

Hey Jack UGA grad here so super familiar with the area. One of my biggest regrets is not buying a house and house hacking it while I was in college. The biggest reason you are probably only seeing 2-3% CoC is more than likely due to the increase in interest rates and the lag that rents have in catching up with home price increases. The combined effect has decreased CoC on any new buy and hold opportunities. The biggest thing that I would say is of importance is the type of opportunity that you are looking for STR/ LTR. LTR is solid and chances are you could face a significant amount of wear each year on the property and can handle that using deposits.

I have a friend that actually does homes and condos STR in Athens and although he may not have occupancy rates as high as LTR, He often makes the equivalent of 1 months rent on 1 game day weekend. Just some food for thought if you see CoC returns lower than your ideal metric there are other ways to increase that cash flow number. (AirBnB being one of the most common). Another target audience in Athens is the international student community that often come for 1 semester and are not looking to get into the long term lease options thrown at students with majority of the housing. That target audience will pay a premium for Airbnb long term stays and could increase your avg nightly rate with longer occupancy times. The audience is there its just about getting the execution right on a specific property.

Curious to hear about some of the more detailed performance as states by Ross!

Hey Leslie, Curious for your property management services do you guys source the properties for your clients as well as managing their STR, What is the typical management rate that you charge for such services in the Smokies?

I presume this was a personal residence you purchased as a new construction. Lived in it for 2 years and got your equity with 0 capital gains using Homestead? Curious if you had any other intentions when selling, looked at holding and refinancing or any other routes before you decided to sell. Have a somewhat similar situation on my hands.

In GA Wholesalers are not required to have their state Salesperson License, but as @Brenden Mitchum mentioned majority of the above board wholesaling/ investment focused companies/brokerages do require this in order to maintain a more professional conduct of business.

I will say in the real estate realm of GA and i'm sure of it throughout the country, your retail agents generally scoff at wholesalers with or without the license often thinking that we have no knowledge of the industry and are low life's in the space. Coming from an extremely analytical background with my college degree in real estate from UGA- I still get agents that I speak to that have 0 respect for the work I do and undermine my intellectual capacity. That being said- personally I find it gives me an edge to be able to state I have my license in the wholesale realm just off the bat it presents that I am held to a higher code of standards than your avg unlicensed wholesaler in GA. This is not advice, but if you plan on doing wholesaling in GA and do not plan on joining one of the investment brokerages I do not think it is worth it to get your license. 

I hope this answers your question and delves more into my personal experiences in the space! 

Welcome Luis, if you add me as a friend on Facebook I would be happy to invite you to the essential groups in Atlanta! A lot of the information you seek can be found there.

Welcome to Atlanta Matthew, @Brenden Mitchum hit the nail on the head, he has a lot of experience in the ATL market and takes the time out to educate people. I second his statement to do as much networking and speaking to individuals as much as possible. Take everyones advice/lessons and make your opinion as you hear enough/learn the themes that are reoccurring. 

Hey Bruce, to give my 2 cents on the question itself, I would assess your financial situation. When I say this I mean that if you are restricted by capital that keeps you. below the 100k mark then you really don't have much of a choice, however if you have more liquidity that is possible to use then you could go int it with the goal to find something under the 100k mark and still be open to higher priced deals that may have other upside like appreciation and overall area development that increases the price of the home over time- (capitalizing on gains that may not be received by buying in An area that is lower entry but provides great CoC return/ cashflow only as opposed to larger appreciation in addition to okay cash flow.)

I would hit the board and narrow down how much more you would be willing or able to spend and still be comfortable if you found a higher priced deal that is more wholesome. It's sort of a give and take relationship with Cash flow and appreciation.

Atlanta is a vast city, I would narrow down your location. If it is a condo/ townhome or even an add value opportunity I would look inside the 285 on the West side as there are a lot of developments going on and a large desire for people to live there. Super cool area with lots to do. I you have any in depth questions I would be happy to answer as much as I can to guide or help you navigate the Atlanta RE Space. Feel free to shoot me a DM. All in all I would say narrow down the area you would like to look in based on preference metrics, intent, and then go from there. The most desired place to live imo currently for having tenants with a desire to stay with is going to be west midtown. you are correct in that Atlanta it is tough to find MFH. I think a townhouse in West midtown could be the best bet for you to house hack of sorts.

Investment Info:

Single-family residence fix & flip investment in Decatur.

Purchase price: $119,000
Sale price: $247,900

Contributors:
Christopher Mannella, Adam Polokoff, Stone Bettersworth, Mitchell Kramer, Blake Massey, Clay Corley

Awesome Deal we found for our investor, Purchased this home earlier in the year with expected numbers below:

Purchase Price: $119,000
Rehab: $25,000
Expected ARV: $165,000

This property was expected to be a rental however in the ever appreciating Atlanta Market my investor was able to flip this property for a significant amount over expected price.

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

The spread and opportunity to flip in a hot pocket of Decatur

How did you finance this deal?

Investor used Hard Money financing

How did you add value to the deal?

Found the deal for an investor

What was the outcome?

Sweet net profit with ARV well over expected.