All Forum Posts by: Luke Bauer

Hi Oliver,

I have invested in Athens since 2017 and continue to do so today. I own several duplexes and small multifamily in the area with my business partner, @Ryan Hamm. Ryan is an agent in Athens and has worked with several investors, I would recommend connecting with him. We work with different lenders and contractors in the area so Ryan will also have some good recommendations there. 

A few things to mention, many of the traditional duplexes and small multi's in Athens tend to be in slightly rougher neighborhoods. That may not be a problem but it is something to consider, especially when looking at a house hack. Inventory has been pretty low for small multi's so be prepared to do a decent amount of searching and to move quickly when you find a good deal. 

Besides that, we have really like the Athens market and will continue to buy more deals in the future! Feel free to reach out if you have more questions!

Thanks

@Parker Shaw

My RE partner and I own 24 units worth of small multi's scattered around Athens, GA. We are always looking to purchase more! Please keep us in mind if you come across anything for sale. I'll send you a DM.

Thanks!

@Joseph Vaughn on the list of comps posted by @Jordan Wright, I sold 385 Fowler Dr on 2/25/22, I own a duplex on Freeman Dr which appraised for $210,000 in March 2022, and I own a duplex on Ashmore Dr that appraised for $180,000 in February 2022. In total I have 8 comparable duplexes in Athens, 5 of which I refinanced between Jan-March of this year. Appraisal values for all of these (varying conditions) ranged between $165k-210k. I say all of this because $245k sounds high in my opinion in comparison to what an appraiser will tell a bank it is worth. I can also tell you that this neighborhood will not support B class tenants. Even fully renovated, you will get C class tenants on the majority of the streets in this neighborhood (dependent on your definition of B vs C). The good news is, these type of units at this price point are in high demand. 5% vacancy is a good conservative estimate but a good property manager will have this place rented as soon as it is rental ready (if not before haha). Below is what I have seen as far as rents and average annual expenses in this asset class.

Market Rent:    $1000/unit (fixed up)
Annual total:   $24,000 (Gross rents)

Vacancy:         $1200/yr
Property Tax:   $1750/yr
Insurance:       $1080/yr
Prop MGMT:     $1920/yr (8%)
Landscaping:   $1200/yr
Maintenance:  $1800/yr
Capex: $1200/yr (check age of roof $7-9k to replace and HVAC $4500-5200 to replace)
Total Expense: $10,150/yr

NOI:                $13,850/yr

Mortgage PI:   $13,412/yr (20% down on $210k purchase, 30 yr fixed at 7%)

Cashflow:       $    438/yr

Certainly not a homerun by any means, but it gets you into the property. Some items to consider are the large capex as these will kill your cashflow. Your major expenses will be roof, HVAC, and siding as long as the structure is in good shape. Windows can also be expensive if you have a particularly rowdy tenant... DONT SKIP SCREENING

Value and rents in this area for this asset class have exploded. 120%+ appreciation and 50% rent growth in 4 years. If you don't believe me, look at historic sales of all of these properties on qpublic. While I do not believe we are in for a market crash, I would expect to see these growth rates flatline with rising interest rates. I have a hard time predicting rent growth as demand for these units is still through the roof, but I would imagine they will soften with price stabilization. 

Feel free to DM me if you have questions!

Thanks!

@Troy Thurston

Welcome to BP!

Feel free to reach out if you have any questions or if you want any info about investing in Athens. I lived in Athens for the last two years and currently have 2 rental properties there. I have recently moved to Denver but am still buying in the Athens area through the help of my local agent and property manager. I've got another duplex under contract at the moment that is looking promising, fingers crossed it all works out! Good luck on getting started.

Hi Scot, I invest in the Athens, GA area. Athens has the advantage of a steady renter pool if you are willing to deal with the high turnover and often high wear of college rentals. The good news is UGA isn't going away anytime soon which gives protection from vacancy. I personally look at small multifamily which is not usually college students but tends to have higher cash flows. Feel free to reach out if you have any questions about the Athens market. 

I would recommend talking to Lexi at Iron Horse properties. It’s a little bit smaller of an operation in comparison to some of the others in town but Lexi takes good care of her properties and is very responsive. You get more of a personal touch. 

Hi Anthony and welcome!

I am in a very similar situation as you, just getting started in RE in Athens. I just purchased my first rental property about 6 months ago and am gearing up for the refi to complete my first BRRRR project. I'd love to chat some time. Send me a message when you have a chance.

Also I know @Georgui Kasaev has been hosting a meetup for the last year or so that you should check out as well. I'm sure he would be happy to add you to the email thread.

@Koob Moua I'm still trying to find reliable contractors as well. I have a painter that I like who could probably handle some smaller handyman jobs as well. Send me a message if you would like his contact. 

@Koob Moua Thanks! The private money lender I am using is a family friend. The bank I am looking to refi at is Regions Bank. Todd Cowert is my loan officer at the branch on Prince St. in Athens.

@Jaysen Medhurst The property was purchased in August of this year. I've got a good relationship with the loan officer mentioned above. I asked him about a seasoning period and he's telling me that he is able to offer a refi sooner than 6 months. I'm not sure if he will be keeping it in house or if he has a different work-around but he's saying he can offer 75% LTV and we could complete the refi process by December.