All Forum Posts by: Kasey Gourley

@Sean Rooks

Congrats on your first deal! In my opinion this is a double at minimum, considering a lot of people lose money or breakeven on their first deal and it even meets @Brandon Turner minimum cash flow per door of $150/unit. Nice job!

Hello BiggerPockets,

I have been slowly, but surely building my REI foundation via listening to the podcasts, reading the forums, reading books (just finished J Scott's "The Book on Flipping Houses" and "The Book on Estimating Rehab Costs"), and have begun to analyze deals.

I am a numbers and process/systems guy, also cautious and like to check all the boxes, so I have been looking at various markets to potentially invest and I am wondering what other out-of-state BRRRR investors look for when identifying a new market. How you are identifying viable markets for investment? What are the criteria you look for in a healthy market, what are the key economic data points or statistics you're looking at, and what websites and sources are you using to gather this data?

Thanks for all the help!

Thanks @Matt P. I should have mentioned this property is about 1.5 hours from where I live so house-hacking is not an option either.

Hello BP Members,

I am looking to buy my first rental property, but do not have enough capital to put 20% down plus cover closing costs. I have analyzed multiple deals, looked at what comps sold for in the area and what current rents are in the market.  After running the numbers multiple times, looking at best, worst, and base case scenarios the deal still makes sense. The property is a duplex and each unit is 2 bdrms 1 bath. The duplex currently rents for $1,000/mo ($500/ea), while market rates for similar properties on the same street are between $650-750 per unit. Even at the current below market rates the deal will still cash flows $130/mo per unit, after factoring in 10% vacancy and 10% maintenance/capex. 

Considering I only have the ability to put down about 10% at this point, what other options do I have for acquiring this property outside of owner financing since this property doesn't need an extensive rehab and is currently occupied with tenants. Below you can find additional details about the deal.

1,680 sqft Duplex w/ 2 bdrms 1 bath units

Purchase Price: $85,000

Rental Income: $500/mo per unit ($1,000/mo. total)

Cash Flow: $275/mo

Cash on Cash ROI: 19%

Market Rent: $650/mo. per unit

Currently Occupied

Capital Available: $10,000

Thanks in advance for your help and advice!

Thank you all for the responses. I realize a 1 hour radius is a large area, my initial hope was to get the name of a few places ITP and OTP to begin researching, then begin to narrow my search even further to 2-3 areas that are growing and have a strong rental market, because right now I am throwing darts at a board with no idea where to aim.

@Michaela G. I noticed you have done some wholesaling and have rental properties, so asked differently, where are you investing, seeing your wholesale clients invest, and why?

@Loreal Amporful Thank you for the insight. I will put both of those zip codes on my radar and begin watching the market. 

@Curt Smith I will google to see what REIAs are near me and plan to attend the next meeting. Thanks for the information and the advice. I will definitely begin following the job trends and companies moving to the area, as well as ensuring the areas I focus on have access to the expressways and good schools. Are the areas OTP less competitive? I moved from Nashville where I lost multiple deals in a bidding war and was never able to land my first property, so I am hoping my due diligence and a little luck will pay off for me here in Atlanta.

Hello BiggerPockets,

I recently moved to Atlanta and I am not familiar with the real estate market here quite yet. I have a few different searches saved on Redfin, Trulia, and Zillow with homes for sale and rentals properties in the Atlanta area and have been combing through those searches daily to get an initial feel for pricing and rental rates. My questions is what parts of town are hot areas for investors, specifically investors employing the BRRRR strategy? What parts of Atlanta are you investing in, what parts of Atlanta are seeing a surge in growth or expected to see a surge in growth, and what parts of Atlanta should I stay away from?

I realize this is a broad question and Atlanta is a very large spread out city, but my hope is it get the name of a few areas (Doraville, Smyrna, Decatur, etc.), so I can focus my search and begin driving those areas to look for opportunities. Willing to work within a 1 hour radius of Atlanta.

My criteria: 

1. SFH under $150k needing less than $10k in rehab and will rent for 1% of purchase price.

2. Duplex, triplex, or quad under $300k, each unit needing less than $10k in rehab and each unit cash flowing $250/month.