All Forum Posts by: Shyam Panchal

Hi BP Community,

I am relatively new to the BP community and am in the market for some rental properties in the Greater Atlanta area.  I currently have one rental property in Alpharetta, but was looking elsewhere as the price points are too high for my budget ($150k).  I've mainly been looking in North Atlanta, and the agent I am working with suggested areas such as Marietta, Dawsonville, Cumming, Sandy Springs, Woodstock, Doraville, and Brookhaven.  Dawsonville, she said, might be the next up-and-coming area.  

I have a friend who recently bought a few properties in West Atlanta with a high percentage of renters (75%+).  I was considering this strategy, but thought the areas he invested in didn't seem that great based on median income, vacancy and unemployment rates (30331, 30311, 30349, 30008).  Vacancy rates in these ZIP codes ranged from 10-20% according to NeighborhoodScout.  Median Income was lower than the national average and unemployment ranged from 10%-15% (taking these details with a pinch of salt).  

I suppose I have a few questions really:

1)  Has anyone recently invested in Atlanta and have any suggestions where else to look?  North Atlanta seems quite pricey at the moment, and I'm have doubts I will be able to pick up anything with my budget.

2)  Does it make sense to invest in rental properties in low income/high unemployment areas, IF there is a high percentage of renters compared to owner occupiers?  

3)  I am looking to sell my rental property in Alpharetta.  Unfortunately, the experience hasn't been great with the amount of repairs, bad tenants, and challenges selling the property (It almost sold last year, but due to the repairs that deal fell through).  However, I am not having trouble renting the property.  It seems to generate a lot of interest as it's near good schools (Brandywine Elementary, DeSanna Middle School, Cambridge High School).  I was considering doing a cash-out refinance to use the equity towards purchasing more property and renting it out as I am today.  Is it recommended to avoid doing a cash-out refinance on properties which have had trouble selling?

Thanks!

Shyam

Hi Greg, thanks for reaching out, definitely will give you a call.  Interested in hearing what advice you have.  I recently tried to sell the house but with no offers unfortunately. I'll explain when I call.

Hi Joseph thanks for your response.  After a few months on the market, it looks like the reason why it's having trouble renting is because there are tenants living in the basement.  The top level and bottom are segregated though.  There are some issues, however.  I asked my previous realtor to check if this house is a proper multi-family house.  I later discovered that she did not check everything.  It looks like tenants will have to share utilities and the HVAC system is not segregated, unfortunately.  In addition, multifamilies are apparently illegal in Forsyth County.  Granted, part of is my fault for not checking these details myself.  However, I did ask these relevant questions prior to buying.  Unfortunately, I live out of the country so would be difficult on my end to check everything.  If you have any advice, would be great to hear your take.    

Hi Jaysen,

Thanks for your reply.  Part of the issue is that my tenant in the basement is a refugee from another country (also not disclosed during the purchase process).  I don't think the family would be legally allowed to purchase the home, nor would they have the funds.  I am thinking the worst case scenario is that I sell for a discount..but still exploring other options.

Thanks

Shyam  

Hi All,

I am new to BiggerPockets but have been following the forums for some time.  I am looking for some investment advice on the sale of a rental property I have out in Alpharetta, GA.  The property is a single family home with a finished basement.  The upstairs living area and basement are segregated, with a 3 bed, 1.5 bath in each unit.  The basement unit is currently rented with a long-term tenant.  

I recently purchased this property back in February 2018, but since then I have had a laundry list of issues with the property since I closed the deal.  Some information during my purchase wasn't disclosed by my agent and I found out after the fact.  There are high-voltage power lines running through the backyard of my house and I recently discovered that duplexes are not legal in Forsyth County.  These facts came out of a refinance appraisal earlier this year after I purchased the home.  In addition, there were a laundry list of repairs which I had to complete over the course of the year.  Now I am in a situation where my top unit is having trouble renting, it's been on the market for 2.5 months.  Needless to say, I am considering selling the house now.

Has anyone every dealt with this situation and are there any strategies that I could implement to sell the home faster?

Thanks