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All Forum Posts by: Nicholas Smith

Nicholas Smith has started 9 posts and replied 33 times.

Post: Buy & hold turned flip

Nicholas SmithPosted
  • Investor
  • Stockbridge, GA
  • Posts 34
  • Votes 6
Quote from @Jake Baker:

@Nicholas Smith

That is a great lesson learned. 


 Absolutely 😅

Post: Buy & hold turned flip

Nicholas SmithPosted
  • Investor
  • Stockbridge, GA
  • Posts 34
  • Votes 6

Investment Info:

Townhouse buy & hold investment in Lithonia.

Purchase price: $100,000
Cash invested: $6,000
Sale price: $189,700

Purchased townhome with 5 year interest only balloon loan for $100,000. 3.5% interest. The median rent in the area is around $1500. Had terrible tenants and had to turn place into a flip to get above water.

What made you interested in investing in this type of deal?

I saw the growth in the area and knew it would be the stepping stone I needed for financial freedom.

How did you find this deal and how did you negotiate it?

It was my uncle's free and clear townhome. I negotiated a deal to give him the cash he wanted for it but only after a 5 year balloon loan.

How did you finance this deal?

Owner financing. Agreement was a no money down, interest only 5 year balloon loan for almost $300/month in interest. At the end of the 5 years, or when I wanted to pay off the loan, $100,000 would be paid to owner for townhouse.

How did you add value to the deal?

Rental tier renovations to the property through credit cards.

What was the outcome?

Horrible tenants drove us to pivot and sell instead of refinance. Ended up making over $50,000 in profit.

Lessons learned? Challenges?

Never let family live in your investments.

Post: New Short Term Rental Rule in Atlanta

Nicholas SmithPosted
  • Investor
  • Stockbridge, GA
  • Posts 34
  • Votes 6
Quote from @Nick Rutkowski:

Does this only apply to residential zoned properties or does it apply to commercial/mixed use zoned houses as well? 

I'm not 100% sure about that, but from the sounds of the rules, I think it goes for any property within the Atlanta city limits. If they stretch it to all of the ATL metro area that could be a huge problem for a lot of investors because many places are in the surrounding cities which are technically not Atlanta. 

Post: New Short Term Rental Rule in Atlanta

Nicholas SmithPosted
  • Investor
  • Stockbridge, GA
  • Posts 34
  • Votes 6
Quote from @Rodney Sums:
Quote from @Nicholas Smith:

How do y'all feel about the new STR rule? It says that you have to purchase a license for running STRs and also can only have 2 rentals with one being your primary residence. And you have to be an Atlanta resident too.

 Although I'm not from Atlanta I can see more restrictions becoming commonplace in more metro areas. I'm ambivalent regarding such measures. As an investor I can appreciate disappointment with investment obstacles. I recall the frustration trying to by my first house to live in, losing properties left and right to cash buying investors. I think it's healthy overall to ensure citizens have a fair chance to enjoy home ownership, the opportunity to invest in and benefit from owning real estate preventing it from being heavily limited to investors. Moreover I think this would be beneficial for new and small time investors facing increasing competition with Institutional investors buying in large numbers. 


 This is a very good point! I can understand this perspective because I'm living it! 🤣 I am a novice investor, but I have a family so I was looking for a house to live in that I could flip. It took me nearly a year to find something because of investors snatching every house I bid on because they had cash offers. I'm not at the stage of investing where I have much capital so I was losing every time! So I can understand putting some type of shackles on big investors that can gobble up all the real estate leaving the scraps for people just wanting to purchase their first home.

Post: New Short Term Rental Rule in Atlanta

Nicholas SmithPosted
  • Investor
  • Stockbridge, GA
  • Posts 34
  • Votes 6
Quote from @Rick Baggenstoss:

It's very restrictive. Likely thousands of STRs will disappear fearing fines, etc. Atlanta Hosts are counter suing to eliminate the requirement for residency and to grandfather existing properties. I'm sure Atlanta can't police STRs, but if your neighbor wants to shut you down, then they can. Hard to imagine even after all this that Atlanta will be a safe place to be a STR host.

Most of mine were converted to furnished rentals for nurses and other folks staying longer term.  I've enjoyed this model more.  It's also compliant.

For properties that are convenient to Atlanta, I'm going to convert them to Airbnb, where appropriate.  I expect demand/profits to increase significantly.


Good morning Rick. One of my good friends is a STR investor in the Cobb area. He has a rental near the Battery that has been unbelievably successful and now he is worried about his future plans. I also think there should be a grandfather clause because a rule this huge should have been dated to start next year so that people could have time to get compliant.

Post: New Short Term Rental Rule in Atlanta

Nicholas SmithPosted
  • Investor
  • Stockbridge, GA
  • Posts 34
  • Votes 6

How do y'all feel about the new STR rule? It says that you have to purchase a license for running STRs and also can only have 2 rentals with one being your primary residence. And you have to be an Atlanta resident too.

Post: [Calc Review] Help me analyze this deal, please!

Nicholas SmithPosted
  • Investor
  • Stockbridge, GA
  • Posts 34
  • Votes 6

Hey everybody!

My uncle has a free and clear townhome that he is trying to get rid of, and I've been wanting it for a very long time. The problem has always been that my financing was tied up in other things. He wanted to help me out since we are family and agreed to do an owner financed interest only 5 year balloon loan. My plan is to do a BRRRR by rehabbing the place to get it up to par for renting and then pay him the $100,000 that he wants for the place. Now before anyone even looks at the report, I know that this isn't a standard looking balloon loan, but my uncle was fine with the interest rate being as low as I have it. This will be my first rental and will definitely set the groundwork for another. So he wanted to help me out. Thanks in advance!

I want to become more active as a Pro member and utilize the tools that I'm paying for so I wanted to know if you guys can give me some opinions on this deal I'm working on.

View report

*This link comes directly from our calculators, based on information input by the member who posted.

Post: Cash Out Refinanced Live-In Flip...Now What?

Nicholas SmithPosted
  • Investor
  • Stockbridge, GA
  • Posts 34
  • Votes 6

Post: Cash Out Refinanced Live-In Flip...Now What?

Nicholas SmithPosted
  • Investor
  • Stockbridge, GA
  • Posts 34
  • Votes 6

Hey guys! My wife & I finally finished working on our house we purchased in 2016. We purchased it for $110,000, put around $5000 in rehab into the property, and a month ago it appraised for $154,500!!!! I got a little over $17,000 back.

I inquired on getting a rental property next, only to find out that my debt to income ratio is slightly too much to get a loan through the bank. My car has about $5,000 left on it. I'm paying 365 a month in the car payment. 


I was thinking about holding the 17K to help me get a hard money loan so that I can do a deal, but I starting thinking that maybe my first step should be to get my debts down so that I can do deals without the worry of them not getting excepted because of the debt to income ratio. What do you guys think? I'm leaning towards killing some debt since I'll still have some money to use on a down payment.

Post: Help Analyzing My First Buy & Hold

Nicholas SmithPosted
  • Investor
  • Stockbridge, GA
  • Posts 34
  • Votes 6
Originally posted by @Will Gates:

Were you going to purchase with cash or financing?

 Financing.