All Forum Posts by: Eugene Beard

In my newbie opinion. Just make it clear to all parties  their options. If you want to be a upfront  and honest wholesaler then DO so. Let them know they can get a lot more for the house if they clean it up and do some renovations  BUT if they jsut want to sell as is and get out of their situation with the home A.S.A.P. then this option will work as well. If they inquire more about the difference  you say your fee will be included on top because you are in a business to help people AND make money. Unless your running a charity event type business then more power to you! Most people even given the option to make more still wont want to do the work. But you giving them their options and being honest is always how you should operate with your customers. But you know...grain of salt in a sandstorm.

@Joe Villeneuve

hey where are you getting that 12% COC on the 60K the stock market? or other properties as DP?

@Thomas S.

Im curious what is your exit strategies  are  for the properties since you leverage almost 100% on loan to value and put your actual cash funds in "income funds" I assume those are self directed stocks?

@Joe M.

 From a different stand point of view not that you have said you are not sure if you are cut out for it. I would say option #1.   You have to understand how risk-prone or risk adverse you are. Most Investors are all about leverage OPM(other people money), refinancing loans pulling value out, increasing debt, and stretching that money out to more properties and scaling up. while others are more interested in being debt free, actually owning the home(instead of the bank owning it), etc. You can guess which one I am. :)

Looking at the 75K, If you save 75K over 20 years is about $312 a month in reduced costs.  Thats money Not spent but its not extra income either so most people wont count that but yes it is savings. Sorry @Joe Villeneuve!

Looking at the 60K, If you spend 60K to make 850/month. You would recoup your money in a little under 6 years. after that your house is fully paid off, (saving the 75K) and everything after that is profit. Not bad IMO. If you can deal with that it sounds good to me. 

Now  it depends on your plans with your fiance in 6 years. 6 months sounds like you've already picked out the house and started packing but im not so sure your actually there yet. 6 months turns into 2 years very fast when things get put on the back burner. If moving to a family home is your priority and 6 months is the deadline then for sure option 1 is not for you. but If you can wait 2-3 years on moving focus on learning how to manage your new tenant(see if you like it) then you will have a better understanding to choose the other options. IMO if you chose #1 now you can always choose options #2 or #4 six months(maybe a year) down the road, pull all your 60K back out plus what ever appreciation you have(if any) and move forward. to me in option #3 you said paying interest bothers you and option 1 solves that problem, gives you practice with a new tenant so if they don't pay or u have problems you don't have 2 bills( your old mortgage and your new mortgage) to manage along with the stress(of kicking out your friend and finding a new tenant) just the one mortgage that your fiance already has within his budget(because your 60K didnt' factor into bank financing so you found a home to move to that was within his budget alone(even more safety net) or at least lower mortgage payment and house than if you had 60K to use to buy-down another home. but i digress....

Option #1 is less stress , less interest payments,and less of your money with 2 options left over at a later date. like joe said your 60K is safely locked away in the home(minus depreciation) which you can always pull out later on when you are more risk-prove.

Still your choice but that my point of view.

Good luck!

I new as well but i think you answered your own question. if your 2 rounds out of the minimum 6-8 then keep going... get to 7-8 before thinking about adjusting. Get some more data in your system so you can actually see if its working(compare round to round). Remember most people quite in the 2-4 round range. Good luck

@Sara Als.

Im also interested in multifamily in the atlanta area. But i think you need to be more specific with the area you are referring to/ interested in investing in. im no expert by any stretch of the imagination but in Gwinnett county i have been having a hard time finding deals on zillow that are worth their price. And since I have been looking/ analyzing for over a year in this area prices have only been increasing. Prices in lawerenceville for example for duplexes have risen from about 120K to 160K. im trying to invest in the <100K price point and I find it difficult in this area to even find a 150K duplex worth its merritt IMO.

To answer your original post,if your looking for turn key multifamilies of course your going to pay a premuium and atlanta "HOT" market is not going to make it any easier. but it would make sense to purchase these if they fit your numbers and if YOU see rising value in not only the home but the area as a whole. Ex. Nearby great schools, right next to the site amazon HQ is looking to  buy,city remodeling of parks and streets, etc. those are indicators to good rising areas. So a premunium maybe worthwhile if  the home is in places like this. do research mroe indepth to the area itself and you will have a better understanding of gambling in Atlanta markets :)

@Marcel Williams you need to call me brother! I have lived in snellville just about all my life. I literally did what your thinking about. Moved back in with my parents after college(engineering). Got a job at coca-cola( not engineering) so money was tight but I had to get out my parents place. I bought a duplex 200K in norcross and live for free now (well almost) looking for my next property. I made the mistake of not having my numbers right to move out quickly(I lose about $50 a month if I leave now. which isnt bad but its not good either). BUT what I did right was use NACA as a first time homebuyer with no downpayment and closing costs and low interest rate 3.5%. if you can hold on to your job a little longer this might work for you to squeeze out a little more house to get a duplex in the 200K price range. Gwinnett county is hot when it comes to multifamily thats what i focus on. If your interested I can give you the full story and you can get a leg up on your investing. Good luck!

Obviously DM me for my number :)

@Tawantis R Monroe which atlanta neighborhood is this in?

@Jered Sturm not in atlanta but.....

@Pat Marin-Finn welcome to Georgia! Definitely get a place close to work unless you have a bike to dodge traffic! (my main pet peeve!) I am currently house ahacking in the gwinnett area. If you have any questions Id be happy to speak with you.