All Forum Posts by: Joshua Feit

Hi! 

Pay a contractor to come along! An hour with a decent contract on-site will result in an estimate, and that will give you a clear idea of what will be involved in the rehab.

Oh, and whatever they quote you for time and cost, multiply both numbers by at least 1.5!

Cheers,
Josh

Hi Michael,

Josh here -- I'm an investor in Atlanta, and I've been at it for four years. You probably already know a lot of this, but just in case:

Get started by making yourself a list of tasks. Break it down, and start to check things off. The biggest question to answer is how you are going to fund your projects. While you are interviewing banks, getting your savings in order, etc., here are some things you can do now:

-Start driving neighborhoods! Google street view is not going to cut it. You need to know how the streets look and feel in person. And as you drive, get out of your car to meet neighbors, ask questions. See if anyone knows anyone that wants to sell. Pound the pavement!

-Get a paid account here, and use the calculators over and over and over. Analyze 10 sample deals a day, until it only takes you a minute to input all of the numbers. Once you have analyzed 100 deals, you're going to start to intuitively understand which ones are good and which ones are not even before you hit the final button to analyze the deal.

-Start to network. Build a spreadsheet with at least 10 contacts for contractors, handymen/women, listing agents, buyers agents, property managers (yes, even if you intend to self manage), etc. Ask for references, and call the references. Build the team long before you are ready to do your first deal.

I imagine you are in Greenville, which is why you are asking about it. I have a lot of experience with the Atlanta market (I have done all of the above, and now own 10 rentals in the region). I'm also a licensed agent as well. If you every want to chat about ATL or about RE investing in general, I hope you will reach out! I'm always up for a conversation about RE.

Cheers,

Josh Feit

Hi Dan,

This is just a quick response to say that I think you are doing an amazing job -- working incredibly hard, saving money, and laying out short and long term goals. I'm impressed!

I was not nearly as organized or discipled when I started investing four years ago. And I made some big mistakes. but I also got the ball rolling and wound up with some amazing properties that have performed well and appreciated like crazy.

So I guess my encouragement to you is to to go for it! Even if a property isn't 100% perfect, as long as it meets your major criteria, jump in and make at least one of those goals a reality -- and sooner than later!

Wishing you many successes in 2019!

Cheers,
Josh Feit

The simplest way is to just write a flat fee for water / sewer into the lease as a line item. I did this at a rental in Atlanta, and it worked pretty well. Some months we made a few extra bucks, and some months we lost a few. In the end, we pretty much broke even on the costs and there was zero work or cap-ex (sub-meters etc) involved. Hope it helps!

Hello BP!

I wanted to introduce myself. My name is Josh, and I have been investing in long-term rentals in Atlanta for four years. The market's on fire here, so I thought I'd try a new strategy -- vacation rentals in Gatlinburg / Pigeon Forge!

Thanks to Lucas and Avery Carl (top contributors in this forum), I have acquired my first cabin, and we have our 7th guest staying there right now. It's been an exciting journey, and though I am a little nervous about it, I'm also enjoying the ride.

So, just saying 'hello'! Please reach out -- I'd love to connect with you, especially if you are renting cabins / condos / etc. in this area.

Cheers,
Josh Feit

Sorry for the off-topic remark... Keeping it on track. Would love to hear from some folks who have taken the plunge with AIRBNB vacation rentals. Thanks!

Where do you live in Kansas? I have an 'investment' property in Harper County, which is by far the worst investment I have ever made...

BP!

I have 10 rental units in Atlanta, and like everyone else, have been having a harder time finding solid deals that produce the way my current ones do. So, I've been thinking about getting creative and trying something new to me -- AIRBNB.

I'm a mountain biker, and I found a property that would appeal to me as a renter. It's a duplex (3/2, 2/1) that needs a complete cosmetic overhaul + HVAC, but has a lot of character (exposed brick, large deck, unique rooms, etc.). It also has a small garage that potentially could be a third efficiency unit.

It's on two acres of land that backs up to one of the best mountain bike trail systems in the Atlanta region. I think it would be a fun place to rent out for a few days and go biking right out the back door.

They want $204K for it (it's been on the market for 100 days), and I bet they would take a good bit less. I would think it would take about $90K to get both units looking great and ready for short term rental, plus maybe $10-20K to landscape the property, add a fire pit, porch swings, etc. Down the road, another $20-25K to turn the garage into an efficiency unit.

I went through the steps, and AIRBNB seemed to recommend starting the 3BR unit off around $70/night and anticipated about a 60% occupancy rate.

Okay, so there's the basics. My question:

How can I tell if this would be a good AIRBNB rental? It's hard to do the numbers, since there are several unknowns. Any ideas about how to calculate the return? Any other tips in making the decision?

Thank you for the help!

This is not in Shaker. This is in Mt. Pleasant. BIG difference.

Thank you, everyone, for your input! After much consideration, we have decided to pass on this one. The individual issues are surmountable, but it's the combination (flood plain + low rents + lack of appreciation + bad economy + violence on the street) that made up our minds. Quite the cocktail!

If anyone wants to make a run for it, I am glad to give you the address and the property manager's contact. Send me a PM. Cheers!