All Forum Posts by: Mike O'Connor

Viki - congrats on making the jump, that is exciting!

Yes, you should absolutely set up an LLC. You should then buy the property through the LLC (e.g., have the LLC's name on all paperwork and contracts instead of your own). If you don't have your LLC set up before the purchase, you can always deed the property over from your name to the LLC. Each one of my properties is set up under it's own LLC. Some might say this is overkill but when it comes to tax season as well as multiple partnerships with different structures, it helps keep things black and white. Plus, there is an element of shelter in each LLC.

You can file for your LLC via the Secretary of State.

Hope this helps!

Mike

It is always good to get the full picture... so I say yes, find out more.

All of those Cap rates look good but there is much more to it than just the rent and purchase price to make sure your Cap rates and cash flow are correct.

- Will you be managing these yourself? If not, what is the managers %.

- What % of income did you allocate towards expenses?

- What would the taxes and insurance be for the property?

- What is the condition of the property? Does it need a new roof, plumbing, HVAC, etc? Those factors could quickly increase your acquisition costs.

- Are the rents currently below market value? Do the tenants currently pay for their utilities (and if not, is the property sub-metered for water)?

Those are just a few items, but you will need to get more details in order for someone to properly evaluate things. 

We actually just did this exact thing. The house was a 3/1.5 which made it easier to convert since a lot of the foundations for the full second bath were already there in the half bath. In our case, the half bath was in the master and it was up against a closet that seemed to be serving little to no purpose in the living room. So, we sealed up the doorway and knocked down the wall between the half bath and closet to make the full second bath.

I would say to look for house configurations such as this as a good starting point. The renovation was quick and easy. I haven't added on a full bath from scratch yet, so I wouldn't be able to speak on that.

Mike

I have a 32 unit complex in North Atlanta and would love to find more in the area just like it. I would say it is a good area to look, but finding a good deal will be tough. As far as flips, I prefer East Atlanta. So, I guess it depends on what you are looking for...

Hey Drew - I would suggest sending a PM to @Azeez K. he is a very knowledgeable and investor friendly agent and knows the Atlanta area well. I have worked with him both professionally and personally (my personal residence) and he is great.

Hope this helps!

Mike

Wish that I could make it!

@Azeez K.@Matt Wood@Kiran K

Mark, you are right in both regards... real estate is a great investment, but we are in a very tough market, especially in Atlanta. Fortunately, this site is full of great resources and people who can help you find, evaluate and close deals. The best thing that you can do is to start networking, asking questions and letting people know what it is that you are looking for and eventually you will find something! Best of luck and welcome to the site.

Hi Charles, welcome to the site. @Azeez K. is one of the best investor friendly agents in Atlanta. You should connect with him if you are looking to invest in Atlanta.

Good luck - Mike

Thanks all for the great inputs!