All Forum Posts by: Kevin Tran

Hi everyone,

I'm new to the rental business and thinking about buying a duplex in Atlanta, GA. I'm Looking for advice on a potential deal. I've given a verbal offer but trying to come to agreement on the existing renter before submitting the written offer.

This duplex is in rough shape inside and out, and will need a full renovation to bring up to rent ready condition. One side is vacant, other side occupied by a tenant who has not been paying rent to the current owner. Based on the pictures, the occupied unit (just like the vacant) would be deemed inhabitable. Leaky roof has severely damaged the ceiling and floors, which are both disintegrating. This deal is from a wholesaler, who is looking to assign the contract he has with the seller. I asked the wholesaler to include a provision in the purchase agreement which requires the seller to have the occupied unit vacated prior to closing while ensuring no further damage to the property through closing. I feel bad displacing people but it's potentially my first buy/hold deal and I'd like to come in with a clean slate. At first the wholesale indicated that should be doable without too much issue. Today, they got back and said the seller is old and doesn't want to deal with evicting the tenant. Wholesaler suggested "should be easy to evict, we'll help you."

I've crunched the numbers and think it'll be a good investment once fixed up. It however comes with a tenant who has not been paying rent. I'm also a little leery of this wholesaler's who is making it sound simple. Reading the GA eviction laws, the process of filing, responding, hearing can take up to a month, plus lawyer and court fees. Not to mention the potential damage left behind be the disgruntled tenant. 

As a rookie, I prefer to step into my first deal as a clean slate, but the deal is good enough to where I would like to explore my options. I thought of renovating one side while letting the tenant rent the other side, then allowing them to rent the renovated unit with increased rent while renovating the other side. But that smells like disaster with a tenant who has not been paying rent. Looking for advice and/or guidance if anyone has dealt with this before.

Thank you,
Trong

@Dieggo Goncalves Congratulations on the move and welcome to the South. Hope you have a smooth transition. It's always great to add another trade/contact into the network. What are your REI goals and strategies?

I first heard of the BRRR strategy on the BP podcast, that stroke of genius drove me to join the community. Now there's a whole book on it! Will definitely add to the reading list.

@Vincent Finn I flipped in Gwinnett and Decatur, but really open to anything within 30miles of metro-Atlanta for now. Particularly interested in flips in the West Side around the beltline, like West View and Washington Park. For rentals, I like the the Marietta/Smyrna area, but the Forest Park and College Park areas seem a little more affordable.

@Frank Dortilus and @Michael Mullininx look forward to connecting with you.

@Dmitriy Fomichenko thanks for the love, will see you out there.

@Bill Hampton Wow, thank you for the tips. That is a lot of useful information and time you didn’t have to spend but you did. Thanks so much for that. I’ll be sure to put it to use. I read the “voting” link first ;)

Hi friends,

My name is Trong, new RE investor from Atlanta, GA. I found BP when I first read J Scott's Book on Flipping Houses a few years ago, and recently started listening to the BP podcast. I've flipped 2 houses in the Metro-Atlanta area in the last couple years and now looking to branch out into rental properties. Particularly interested in the BRRR strategy because it's kind of a mix of both, flipping and buy/hold. I work a 9-5 and make decent income but would like to generate more passive income to ultimately have more time to do the things I want to do, like traveling or spending time with my family. My goal of joining the BP community is to learn, network and hopefully contribute. I would love to get connected with any member in the metro-Atlanta area. And if I can be of value to members outside my area, I would love to connect with you as well. Thanks for reading and look forward to connecting.