All Forum Posts by: Watson Smith

Long time no post..  I need to change my profile pic cause I'm not that young anymore...

I'm looking at building a vacation home in Cape San Blas on the Florida Coast. I'm comfortable building them in Atlanta but don't know much about building them on the coast.  Not sure if it would be in the X or AE flood zone - I'm still looking for a good lot.

If I went with the AE flood zone the elevation of the home wold have to be around 9'-11' and I'd want cement pillars.  I've done some research and seen where they can be around $1k each installed - So for a smaller house with 30 of them would be $30k.  Does that sound right?  The only other differences I'd see are hurricane windows/door, metal roof, the house designed for the coastal elements, ect.  Is that it?  What am I missing - I can build in Atlanta for $130/sft safely and wanted to ballpark $200-$210/sft on the coast.  Anyone have experience building down there?  What were the headaches and unexpected costs that came up? Any advice?

I do an open house as well.  I advertise it a week or so in advance and ask anyone interested to email me.  Then a day before I email/text everyone just to remind them.  If I don't find what I want I set up another date and do it again.  This did turn into a mad house once with around 70 people showing up within a 2 hour window... But I got a great tenant out of it. 

Another vote for thertastore.  I've put them in rentals, flips and even my personal home.  For the price you can't beat their quality.  I've had them in my home for 5 years and they still look brand new.  

Depends on what class of tenant you're renting to.  I've always provided a refrigerator just with no ice-maker.  My normal appliance package is refridge, stove/oven and dishwasher.  I advertise washer/dryer hook up but never supply them.

Add me please

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I have 3 SFR's in Rockdale. I bought at the right time so I've seen them appreciate. Tenants are hit and miss but for the main part haven't been horrible. If you find a good deal take it - Its not my favorite area to invest but a deal is a deal. Stay away from the Lithonia side though (Stonecrest Mall).

@Kyle Mccaw has covered it well.

All my properties are in C - D range neighborhoods.  If you're use to high class neighborhoods you won't make it long.  The first house I bought was in a D- neighborhood... It was rough.  I was all in at 38k after a near complete rehab...  its worth about 140k now and houses my best tenants who refer people they know and trust for all my other properties. 

The tenants are more needy.  It's not exactly "mail box" money.  I only take cash (most don't have bank accounts anyway) and I drive and pick it up.  The more they see and talk with you... the better.  You'll gain respect and actually get your rent.

When you rehab these houses don't spend a lot of money... its not needed an it'll look pretty bad in less than a year.   Make sure the plumbing, roof, electrical & HVAC are sound and you should be fine.  These type of renters just need the basics.

I currently have these renters who moved into a property of mine in the middle of a Georgia summer.  It was about 97 everyday... They moved in and the HVAC stopped working 2-3 days later.  I didn't know this till I showed up a few days after just to check on them.  It was 90 in the house and almost unbearable.  I asked why no one called me - They stated they didn't want to bother me.  I tried to put them in a hotel but they refused.  So, I bought them 2 cases of Colt 45 and a bunch of ice-cream for the kids till the A/C guy got there.  I've never seen a family so happy.  They've been with me 4 years now.

Point - They don't expect much - Just a landlord that treats them like a human and not a slum lord. I bring all my renters Honeybaked Ham for Christmas as well.  I've never had to advertise a home for rent... My phone rings almost daily from a referral.  If done right you can make money in low income areas... it's just more work and risk.

@Steve S. are you seeing this in California or all over the country?  I know in Georgia there aren't many investors sitting on the sideline.  I see you do private money loans and I personally know plenty of people that do them as well. The drop in their business is due to people able to get what they need through banks again.

Timothy - I started at 26 with zero experience.  Houses were dirt cheap so I bought my first one and fixed it completely... Took 7-8 months but I learned a lot.  My first renter did 12k in damage 5 months later and I rarely slept. I thought I had lost my mind... So I bought 9 more and looking to buy 50 more.

Point of this is just go out an do it.  90k with construction experience is wonderful.  Flipping and rolling profit into rentals is awesome.  Just make sure you do your comps and research the area so you know the average days on the market and make it happen.  Don't get over leveraged - and only do the deal if it makes you money.  Enjoy.

I was working a W-2 job when I started RE... and I'm still working the same W-2 job with 10 SFR. I use the W-2 money to live off so I can pay down the debt with 100% of the rental income. I'm fortunate to have what I feel is a good job.. But hate every second of it. I mostly sit in my office and tell myself I'm wasting my time... I could be doing much more productive things to help grow my portfolio. Thats my 2017 goal... Get out of the W-2 job... Unfortunately a W-2 job is very helpful to get started. Would you want to rent a house to someone who doesn't have a stable job? Well, a bank isn't going to loan the money to that same type person either.