All Forum Posts by: Michael Dumler

@Sam Abe, Georgia is a caveat emptor state (buyer beware). Unless you're still within your due diligence period, there is no contingency that you can enforce to back out of the deal and receive your earnest money deposit. The buyer is responsible for verifying all information about the property. It sounds like you submitted a blind offer without performing any initial walkthrough. Why? Was it that good of a deal that you had to submit an offer unseen? Hopefully, your real estate agent did not advise this. Can you confirm whether you're still within your due diligence period?

@Ama Roberts, probably not what you want to hear. However, "the best way to get started with no capital" = a recipe for disaster. In my opinion, the only valid investment strategy to acquire real estate for low money down, even though it still requires about 3%-5% down, is to house hack. You can consider and explore other low- and no-money-down strategies, such as seller financing and sub-to, but these come with risks and can be pretty nuanced. Moreover, you can also explore partnerships, i.e., you find the deal, and your partner brings the money. Start by reading Brandon Turner's book, "Investing In Real Estate with No and Low Money Down." 

@Josh Feit, as an Atlanta agent extremely familiar with this area, I know precisely which location this is in and the property type you're referring to. I encounter duplexes on the market in this area all the time. In 2020/2021, when rates were at all-time lows, this area was super hot, like most other Atlanta markets, and investor demand was high. Needless to say, as you mentioned, that is no longer the case with current market conditions.

I'm biased, but I recommend exploring and considering the option of vacating both units and renovating both sides for PadSplit. Hypothetically, this deal would perform very well if you achieved 80%-90% occupancy. Being close to a MARTA bus stop is always a good factor in assessing whether or not the property should be held as a PadSplit. Consult with an account representative at PadSplit to assess comparables and determine bedroom rental rates. I wouldn't necessarily advise selling unless you have another investment lined up that you can 1031 into.

@Shay Yao, yes, the parents are renting and living within the zoned school district. Therefore, their children can register and attend the respective school associated with the zip code.

@Jardin Gwin, this is probably not what you want to hear, but you're not ready to invest in real estate yet. The property will be in an absolute war zone at a price point of $30k—$100k. Feel free to take or leave my advice, but I think others will agree that, for now, you should focus on maximizing your savings rate, building your credit, paying off any owed debt, and house hack your first deal—just my two cents. In the meantime, start with REITs if you're gung-ho on investing. 

@Shay Yao, I noticed you posted on the forums a little over a year ago expressing interest in house hacking. Did this ever come to fruition? If not, I highly recommend revisiting and considering the house hacking strategy before pursuing a rental. As repeatedly advocated on BiggerPockets by myself and others, house hacking is one of the best forms of entry into real estate while mitigating risk. If house hacking has been successfully executed, have you considered exploring a new house hack opportunity and converting your primary residence into a rental? Rinse and repeat. This approach would be a little more sound and simplistic, in my opinion.

@Cameron Chambliss, primarily focus on creating a system for connecting with property owners and sourcing deals rather than establishing your end buyer list. You can do both simultaneously, but the former is much more challenging than the latter. If you have a quality deal under contract, souring an end buyer is not as difficult as you may think. There is a plethora of investors and flippers in metro Atlanta who are hungry for a good deal. Research and familiarize yourself with PropStream. The platform is widely used amongst wholesalers to source deals.

@Ralph Concentine, for wholesale transactions, work with Katz Durell or Rand and Associates.

@Bruce Yi, depending on your state's laws, request a higher security deposit to reduce/offset the risk.

@Jenna Chen, keep in mind that there are other strategies and avenues to explore regarding house hack deals in metro ATL besides the classic duplex example. For instance, properties with an accessory dwelling unit (ADU) on the lot that can be implemented as a long-term or short-term rental can perform exceptionally well. Likewise, the same can be said for properties with in-law suites or finished basements.

Have you considered or explored any particular ATL markets? FYI, a 203k FHA loan is not a DIY-friendly option. One requirement for this loan product is that the rehab must be completed by a licensed and insured contractor approved by the lender. To be blunt, this loan product can be very time-consuming and nuanced. Since this would be your first deal, I would advise targeting properties that only need a light cosmetic rehab.