All Forum Posts by: Sean Mills

I have a SFH that I have rented the last year in Atlanta GA. The tenant is moving out on 7/16 and new tenants are moving in on 7/20. Do I need to switch utilities over into my name for this couple of days of vacancy?

@Jason Allen

Thanks for the reply!!! I’m gonna look up some of the content you’ve posted and let you know if more specific questions come up while it digest!

Hi,

I have been looking into rental arbitrage as a way to boost short term cash flow with the ultimate goal of help with acquiring long term buy and hold properties. Would love to meet and chat with people currently doing rental arbitrage in or around Atlanta GA, to hear their stories of how they got started and how they find The Atlanta area as a market for rental arbitrage.

I have also been listening to a couple podcast, so would love recommendations on good resources for gaining knowledge.

Thanks!

As long as you qualify you can. I bought my 3 unit building with a conventional 2 years before getting FHA for my primary residence with no issues.

Background:

About 9 months ago I purchased my first investment property with some partners. It is a 3 unit multifamily house in Cincinnati OH that we found and purchased through a realtor and traditional financing. I am very happy with this property and would like to grow my portfolio. 

Due to the mortgage company being a tremendous pain to deal with (All partners have excellent credit scores and above average income and savings) and potential for better deals, I would like to get a little more creative with my acquisition strategy. 

Going forward I would like to try and find individuals with high equity, that have high potential for OWC finance with smaller down payments to limit the funds I need to bring to the table in order to grow in the short-term with the ability to refi into better and longer terms down the road to boost ROI.

What I am looking for guidance on:

• Advice on how identify and market to individuals with high equity and potential for OWC financing terms (what qualities to target, types of marketing, etc.)
• I do have some specifics in terms of property attributes (i.e. 2-8 unit multifamily, locations within Cincinnati OH area, etc) that I would also like to have to focus my efforts further

I think it's a matter of implementing a direct mail campaign focused on high equity, out of state owners but have not been through this process and before spending money on lists and mailers would like some more tactical advice from the community. 

Appreciate any help and advice that can be offered.

HI All- Sorry for the delayed response. Haven't been on in a while! This is all great perspective. Overall my goal is generating long term cash-flow for early/better retirement. @Jon Holdman it's the first time I've heard that saying but I like it. "You can't eat equity". Sounds like for my situation it's best to stick with using cash-flow as my measure and any potential increase in equity is just icing on the cake.

@Tim G.  Sorry for the delay I haven;t been on in a while. Thanks for those details! It's a good starting point.

Tim-

Great insight with the turnover on the 2 and 3bd vs 1bd. I will definitely be considering that as I a look for properties. 

I am planning to target similar individuals, bearing in mind fair housing laws. 

Do you by chance know how far off the square his units are, and how important that is in the area? I assume properties should be within walking distance but could be wrong. Also in terms of his properties cash flowing pretty well would you or your boss be willing to talk more specifics? 

Thanks!

Kevin-

Thanks for the perspective. I will be more looking for rentals so streets with lots of renters won't be a huge concern for me. So long as the properties are generally well maintained. 

I like your point of Hyde Park being expensive. It could be more difficult to find a good deal that will cash flow. 

Thanks!

I am planning to purchase my first rental property this coming winter using conventional financing. While I save for a downpayment I have been analyzing properties for practice. When looking at properties and the return they will generate, should I account for rent paying down the mortgage and building my equity in the property while doing my analysis? Is this something that is just nice to know, or should I be factoring it to my decisions?