All Forum Posts by: Trey Reese

@Dieggo Goncalves

Yes, Dieggo- all of these are in Columbus, GA.

Brian, I don't think you'll get much response on this one.... this  is the Columbus, GA forum, not Columbus, OH.

@Leighann Davis,

I did finalize the deal and close on the house.  To address a few of the points I made in the first post:

• Seller actually had a sales contract ready, so I didn't have to draw up one myself
• The inspection was a little problematic:
  • The financing bank hired the appraiser, and they (inspector) were generally hard to deal with.
    • I've since bought 2 more SFH's finance thru this bank and had similar problems with their appraiser - - so next time, I may try a bigger bank that can bring better tools to deal.
• Seller and I signed the contract at the same time, but due to the appraiser problems, I had to go back to him to offer an extension to the closing date.
• Closing went very smoothly.

The seller was also a landlord/investor/flipper - so he was pretty easy to deal with during all the bumps.

Things I should have done differently:

• I should have spent more time negotiating, so I paid a bit too much for the house, but I was in "first-house fever" and wanted a set of keys pretty badly.
• I should have researched more banks.  I chose the one I did because they were small, and I felt I would get a higher level of service - -- I got that, but it came with a higher level of hand-holding, too.

This is a pretty low-income housing area, so the rent is consistent, but not always timely.  I've turned this house over to a property management company, and the 10% per month, and markup for repairs/calls has been worth my time saved.

Now, I'm looking to start acquiring small apartments, but I'm always looking for a good SFH deal, too.

Does anyone know if a landlord can claim homestead exemption on non-owner occupied rental property in GA?

I didn't think so, but the closing documents from the attorney on my last house contained a reminder note to file for homestead exemption prior to a certain date next year.

Thanks

Guys, I've noticed several houses in my city that have several LARGE red "D"s spray painted on them.  These are run down houses (typically in more run down neighborhoods).  Most of them have the windows boarded up.

Does anyone know what this means?  Maybe the city has tagged as 'derelict'? 

I've seen it across at least 5 different neighborhoods.  Always "D"s, always red.  Always several of the same size on the front of the house (doesn't look like kids messing around).

Thoughts???

@David Morgan - the next meeting will be Oct 4th @ 7pm (1st Tuesday of each month).

@James P. - I don't typically meet anyone advertising themselves as property managers, but I'm sure you could network to some with people at the meetings.  It's a reasonably small meeting group - usually 10-15 per meeting.  I have some contacts with local property management companies - if you'd like, I'll pass along that contact info.

Thanks Hunter.  I appreciate the insight/advice.

Bump.   

Any Georgia based buyers out there that could add some insight?

I need some procedural guidance on a deal I'm working - -and I need someone with experience in Georgia.  This is my first investment deal for rental property. So far all of my house buying experience is with purchasing a primary residence, with the assistance of a realtor - and the realtor drove the step-by-step items (attorney, closing, title check, working with bank timing, etc).

I've found a SFH that I want to make an offer on, but it is a FSBO. Both the seller and I are not inclined in involve a realtor (and the included commission). My question is more about order of operations... I think I've got it, but I want to make sure I'm not missing any pieces or doing things 'out of order'.

• Viewed house
• Negotiate a price with seller
  • <this is where I am, now - still negotiating>
• Take details of agreement to Real Estate attorney and have him/her draw up a sales contract
  • contingent on clean inspection, qualified financing, lien check, etc
    • I assume I should handle hiting the inspector
• Have seller sign sales contract
  • will probably want their lawyer to review
• Finalize financing based on my down payment and LTV
  • appraisal conducted by bank
• Once financing is finalized, the attorney will set a closing date?

What am I missing?

All,

I've been struggling with getting my mind around all the numbers involved in evaluating a house/multifamily for purchase as a buy/hold.  I've spent a lot of time trying to simplify it for myself and understand how each changing variable affects the overall outcome of the deal.

I was able to poll some smart and helpful people in the community and put together the spreadsheet in the link below.  I'm posting the link here and I hope that it will help someone else understand their deals better, too.

Summary - This sheet allows you to input the purchase price of the property, and assumes 6% closing cost. You can also pre-load any make-ready expenses (inspections, appraisal fee's, etc). This will show you what your out of pocket costs will be to purchase the property -- the assumption is a commercial loan with a 75% LTV (so you'll be out of pocket 25% of the purchase price, plus the closing). There are also field to input your yearly insurance and tax costs. There are 4 tabs that will figure yearly payments for 4 different loan types (5yr, 10yr, 15yr, 30yr) based on the 75% LTV.

Obviously, you can tweak the percentages (or any other assumptions), but I'd save a 'golden copy' , before you start modifying it too much.

All of this info is calculated to show you what your yearly cashflow will be - based on your rent, debt service, vacancy/repair percentage.

Download it and look at it - I'll answer any questions I can and I hope this helps some of you.

LGF Group Evaluation Spreadsheet

Offered as an educational aid - no warranties express or implied, etc, etc, etc