All Forum Posts by: Michael C.

@dan mahoney  I'm .5 miles from fort mcpherson station.  I'm also aware tyler perry purchased this place for studio space so thats a great draw for me.  I'm getting quotes for all the necessary repairs( i.e. roof, aluminum retrofitting) and any safety issues.  I have plenty of cash to do these things but definitely want to be efficient as possible. HVAC luckily is in good shape and seller agreed to purchase home warranty as well.  

@dan mahoney

@Greg Scott 3. yeah the tenant thing I will have to wait and see. the interior of the house looks pretty great except for some nasty linoleum in the kitchen and repaint needed on some cabinets but easy fixes. thanks for responding so thoroughly Greg

@Greg Scott 3.

@Greg Scott 1. I'm having an electrician come in and look at all of the outlets and make sure they are pigtailed and or rated for aluminum. my biggest concern is that I'd have to do any major rewiring which would be an instant deal breaker. 2. I'm not sure what the house will appraise for after I make some adjustments but I think I can get 10 grand out of it or 15 even if I make some minor changes that are pretty simple that should have been done a long time ago. I have plenty of cash Reserves but either way 20,000 down is a lot of money to me but plenty of cash Reserves oh yeah

@Manolo D. Manolo I actually anticipate a market correction in the next year or two but the neighborhood I'm in ain't no North Dakota it's a long established family working class neighborhood on the upswing. new gas stations and developments close to the house and very close to public transportation (Marta) I don't anticipate any huge depreciation or appreciation in value or the rents anytime soon but I am prepared for it mentally. I see a lot of opportunity in Atlanta because there are still so many tear-downs meaning in 15 years and neighborhood that was considered a lost cause could be thriving it's already happened here in multiple neighborhoods. but I could also take a huge loss I guess that's the game I'm playing LOL.

@Andrew Syrios I purposely left the after repair value at zero percent increase to plan for the worst case scenario I think after some of the improvements I make I will get a bit of value but I don't know who to talk to about how much and what to do to maximize the price jump the Interior of the place is pretty decent. minor exterior upgrades could really help out the curb appeal. thanks

@Manolo D. I have financing in place already even if I raise the repair value in my Reserves I'm still cash positive in a good way but you're right it was very hard to find a lender that would go that low and was decent @Jason DiClemente I do consider that sometimes I didn't factor in any extra value from repairs being made because I was starting simple but there's definitely work that could be done to bring up the value of this home and I might try that strategy thanks

@Kyle Kufeldt

I've been in ATL for a week and a half researching and driving neighborhoods.  Called leasing signs in the neighborhood and checked comp rents on line.  plus property has a tenant in place that wants to renew for another year.(SWEET)

I do have a PM already.  I think %10 is high but I know it's pretty standard here.  Property's in the area in similar condition are asking 80-85k.  I worked to 70k from 80k because of old wiring and shingle issues.  The aluminum wiring issue is my only concern because rewiring a house, even a small one can be devastating.  $3000 is a guess on budget plain and simple.  could be way off.

No Boarded houses in the adajcent streets and a good amount of renovation can be seen.  I feel like I've done good homework but It's always good to get a second opinion.  Plus I'm not a rich man so dropping 20k is a big deal.

I'm not betting on huge appreciation. I just want solid long term cashflow and good equity to use later in my career.  This is my first BUY.  hope to house hack my own home in LA whenever the market corrects.

Thanks Kyle

I am almost under contract on a property here in atlanta please read details and let me know if you see any big red flags.

Price: 70k  25% down plus closing cost will have me around 19,900 out of pocket

2bd/2bth currently rented for 950/mo comps in area represent this number as average for the neighborhood

Currently livable but definitely needs work.

Shingles soon

co/alum outlets for aluminium wiring(old house)

1 tree needs to be removed at some point SOON after arborist declares dead.

The numbers seem good but I'ts a lot out pocket for such a small property I wonder if I could make better use of my funds.  

Recap

70k 25% down

950/mo rent

mortgage will run about $420/mo plus 10% PM($95)

numbers look good on calc.  Honestly I'm just nervous.

What you guys think 

Calc is below

9pm: I was a bit disappointed earlier but I looked some more in the area I was interested in and found 2 more properties that will cash flow in the area.  Even got to look through them. I will return tomorrow if all my numbers add up and look at 2 more prospects.  Being resilient and patient has really paid off today .  I also secured financing today so the moment I find something I like I'm ready to pull the trigger. I really saw the benefit in not getting emotionally tied to properties but just lookng at the #'s today.  I liked some but there were others that did better on paper.   Will update tomorrow but going to magic city now.