All Forum Posts by: Danielle Prendergast

Prepare for the squeeze in Atlanta. There are a couple big time investors eating up all the inventory down here. Because of this prices have sky rocketed in the past 6 months. Unless your using cash you will find it difficult to get offers accepted. Try to get your offers in within the first 2-3 days minimum. I can refer you to my agent who has been great in writing up offers and getting them out quickly. Felicia Porter [email protected] - 678-820-8838 Good luck!

Thanks guys for the advice, Mark Ferguson that info was amazing, and Simon Campbell and J Scott I think I've finally landed a good agent so far. This week she drafted me about 7 offers already and she has no problems with it. I said agents because I have used many over the span of 2 years, not signing agreements thankfully. The one I currently have would like for us to sign something and I have no problems doing so now that I know she is willing and open to writing these contracts and she understands the urgency. Lastly, in the beginning I may admit I was low balling just a little but that quickly changed this year and I am now offering over the asking price. It is good to know I have the option to write my own contracts in the future on at least some types of properties.

Good stuff!

I apologize if this sounds silly but I honestly do not know. I imagined this was not possible without an agent but after listening to some podcasts I've heard mentions of doing this and using sample contracts. Is this true? Is it worth it? too risky? i ask because at this point I'm frustrated with having worked with many agents and having closed on no properties. I do all of the work and my agents basically wait for me to call them with my offer and property address. I think they are taking advantage of me doing all the searching or maybe I'm expecting too much. Fact is the Investor market in my area is drying up/ moving into cash offers only and I try to put out as many offers as possible but is asking my agent to draft 5-10 offers a week asking too much?

Btw these agents aren't even showing the homes, not until the contracts are accepted and if I need info such as hoa or availability I usually contact the listing agents myself to save time. Waiting on my agent has cost me a few properties as I missed deadlines.

Thanks for your help.

Hi Ali Boone thank you for the help! I am looking in Atlanta. What's the best way to reach out to you, would love some additional insight. Thanks!

Hi @Ali Boone thank you for the help! I am looking in Atlanta. What's the best way to reach out to you, would love some additional insight. Thanks!

Hey guys,

Thanks for the input so far. Here are some specifics. These are actual properties I'm looking to put an offer on. The neighborhoods are not the absolute best but are not the worst either. One of them is actually in a great neighborhood with great schools.

I do see your point in going the Section 8 route. If this is an endeavor meant to take off stress I don't want to put more on but then again Section 8 rent is the most reliable rent, as the money rolls in automatically, right? Coming from NYC maybe Im underestimating my power to deal with these tenants? Also can someone confirm that Section 8 will make repairs (as long as you document everything).

All estimates are made with a 4.625 interest rate. I'm using a mortgage calucator to get the numbers but not sure if this monthly payment amount incldues property taxes (it asked me to put in the amount in the calculator before it spit out the monthly payment so Im guessing it did include, but to be safe I will add the taxes in again into my monthly expense). If they were already added, the cashflow would be around 70-133 more per month depending on the property.

57k
65/hoa
1500/yr taxes
Downpayment - 11,400
Monthly payment - 359
total expenses = 549 (359+65+125)
900/month rent
cashflow = 351/month

61,5k
25/hoa
1600 taxes
Downpayment - 12,300
Monthly payment - 386
total expenses = 544 (386+25+133)
90/month rent
cashflow = 356/month

40k
66/hoa
1300 taxes
Downpayment - 8,000
Monthly payment - 272
total expenses = 446 (272+66+108)
800/month rent
cashflow = 354/month

40k
700 tax
35/hoa
Downpayment - 8,000
Monthly payment - 222
total expenses = 315 (222+35+58)
800/month rent
cashflow - 485/month

About getting loans under 50k. I have noticed this is going to be a problem. I've spoken to some lenders that do this, and waiting on another today to let me know if they will do. In the event I cannot get a loan this small what do you all think of the idea of buying one rental as a start cash and then re-financing after 90 days to recoup 75%? This also may get me a better deal if I offer cash.

Also anyone have lenders in mind? I've tried AimLoan and Quicken and I'm waiting on Bank of America. Some people say the limit is 45k-50 but I've heard some as low as 25k.

Thanks again!

Hi BP!

I am a newbie to real estate investing, and could use any advice that I can get. I currently do not own any properties but have been looking to purchase for some time now and believe I am now ready. I've read numerous books but do not know many investors nor wealthy people firsthand so maybe I can get some expertise here. The people around me have no idea about real estate investing and leave it to my parents they think I need to put the money away in a CD and call it a day.

But I have other dreams in mind..

Im a 25 year old female who works and lives for free in NYC making 43,000 a year with zero debt and a 680 credit score. I don't necessarily hate or love my job but I want to be in a place where I don't feel as though I have to get up everyday just to maintain. My immediate goal in real estate investing is to finance a home in my hometown of Atlanta between 150k-200k but when I do I do not want to have to pay my mortgage on it. I want to purchase rentals now, set tenants in place so that when I buy my home, my tenants can pay my mortgage later.

I have 65k to spend now and I save 1k a month.
I'm looking to invest in 2-3 rental properties between 40k and 70k spending about half of my capital (35k) to finance the rentals. The remainder of my capital 30k will be used for the downpayment on my home (150k) after i purchase the rentals.

Ex scenario:

1. 45k property
9,000 cash down payment
rents for 800-850 minimum
taxes under 1000/mo
mortgage: roughly 300/month
cash flow: at least 300/month after everything (numbers compute to about 450 so 300 is safe to say)

2. 50k property
10,000 cash down payment
cash flow: at least 300/month after everything

3. 60k property
12,000 cash down payment
cash flow: at least 300/month after everything

Total down payments = 31,000
900/month cash flow after taxes, hoa, repair reserve

Of course the numbers here can vary, im considering section 8 which i've seen on 70k properties bring in rents as high as 1295/month. These numbers are on the minimum safe sides.

But my questions to you...

Does this sound like a legitimate plan?
What type of financing should I look for? Do i use conventional or buy cash and then refinance (to be more competitive)?
Is it odd for me to look to purchase rentals BEFORE purchasing my own home?
How will these rentals effect me when going to purchase my own home? Will it help or hinder me in qualifying for my own mortgage later.
Should I look for single-family or townhomes only.

I have a million and one questions, let me know if you can help with any.
Thanks :)