All Forum Posts by: Robert Anderson

 Bingo. It will tell you it's own rating on accuracy for specific cities. For Atlanta, my town, it rates itself 3/5 stars or 60%...that's a failing grade. I'd rather spend my time and resources on something that provides me value through accuracy. 

Almost forgot...I also check rentometer, rentbits and check with my real estate agent to get rental rates in the area within <.5mi of the prospective property. If a conservative estimate of the rent does not get me close to the expectations mentioned above, I move on to the next property.  Don't get attached to any one property in case the numbers let you down.

Deborah,

Welcome to BP! 

I am a REI buy and hold newbie, located in Atlanta, GA. I am currently in due diligence for my first by and hold property. So, my knowledge is extremely limited but I will share my strategy thus far. Keep in mind my strategy is for buy and hold, so I am looking at long run factors.

I evaluate areas with either 1.New growth that is rife with young professionals or 2. established real estate value that will likely only go up. 

from there, I will run the property though 3 filters: Cap rate, Cash on cash return, and profit margin. I learned the first two from BP, the third is a simple fraction. 

Capitation rate = (rent-(tax+insurance+HOA+vacancy(rent*.1)+repairs(rent*.055))) / Property Cost. Looking for about 7% or higher.

Cash on Cash return = Net Annual income (all expenses in cap rate, but including mortgage payment) / Down Payment. Looking for about 15% or higher

Profit Margin = Net Annual Income / Gross Annual Income. Looking for as high as possible !!!

hope this helps!

Welcome Chantel! 

At the risk of sounding lazy, I second David T.'s comments. It seems the thought is that  Atlanta hit it's peak for investing already, but I believe there's a ripple effect in motion that presents many opportunities. Listen to the podcasts, research, and be patient.

Welcome Harold! What type of investing are you interested in? 

I am a fairly new member of BP myself, and I in the Atlanta area and currently working on my first deal ( I am a buy and hold investor. ) I am working in the Dunwoody/Sandy Springs area, but My strategy seeks properties all the way down to Buckhead/Midtown/East Atlanta. This site has been and continues to be a valuable resource in my education.  Listen to the podcasts!!!

I am in agreement with Westin hudnall. Cut that tenant loose and let her be someone else's problem. Hopefully, for the property manager's sake, she was not 300 pounds and ugly as sin.

 Great process...you've turned it on it's head and I think your method makes more sense than showing then screening. I'm still working on my first property, I think I'll employ your technique. 

Do you guys bring the application form with you when you do a showing?

 Also, heard some advice recently - go to the tenants current residence to complete the paperwork. That gives you a glimpse of how they will treat your property, and enables you to run away from THEM before its too late!

David - Congrats and good luck, seems like a profitable prospect!

Mike - that's probably due to the in the Credit Card Accountability Responsibility and Disclosure (CARD) Act. This law may have helped consumers but it gave entrepreneurs a raw deal.

my advice...do NOT get a biz CC, obtain a new personal one. here's why... 

With a biz CC You are now 100% liable for fraudulent purchases with no cap (unlimited liability), subject to sudden and sharp interest rate increases, retroactive rate increases, shorter billing cycles, they can pierce the corporate veil to come after your personal assets if you miss payments. 

I don't see why you would want one at all, unless a good DUNS score requires revolving credit. In that case, I would open one with a small credit limit ($500) and never use it except to buy some gum twice a year to keep it active.