Newbie moving to Buford, GA

11 Replies

Hi BP community! Looooooong time lurker finally at the point in life where my wife and I are going to jump into our first deal. I thought this was going to happen 4 years ago but better now than never. Since my last post 4 years ago, a lot has changed. Looking back we basically live in flipped two homes. Our first home I personally did a lot of work and we ended up selling 2 years later with a capital gains tax free 50k, we rolled that into our 2nd home in West-Midtown Atlanta and just sold our Atlanta home in November 20' for just under 100k in tax free dollars! We are closing on our third home in Buford, GA on 1/27/2021 and this will be a home we stay in long term (1 kid, #2 on the way).

That said, we have around 50k in capital and over the last 6 months, my wife and I have been doing a deep dive into all the books, podcasts, forums, blog posts, etc. Growing up, my dad owned a remodeling business so I am well versed in gut job bathrooms, renovating kitchens, addons, decks, electrical, plumbing, etc. You name it, I've probably fixed it or remodeled it. We are looking to take the 50k in capital and buy a property near us that is in poor condition and rehab and either flip to build capital, or BRRRR. My value add is I know (and am willing) to do the work but also understand the value of time so will contract out when it makes sense. The goal is to do a few hands on flip or BRRRR's to get our hands dirty and then scale.

Anyways, I am looking to connect with other local investors and, once we close on our home next week, we'll be in the clear to get the train rolling!
-Tyler


Tyler,

Welcome back and good luck investing. 

Check out the Georgia Real Estate Investors Association for local networking and education. 

Let me know if I  can be of assistance. 

Hey @Tyler Evans , welcome to the BP community (again)!

Congrats on the fantastic success you have had with those live-in flips! And congrats on the new home and kiddo on the way!

As I'm sure you already know, Buford is a fantastic market. It is quite pricey which is fine for flipping but tough for buy&hold. BRRRR could definitely work out there, as well. Do you plan to stick in that area or invest across the MSA, eventually?

Also, you mentioned scaling, what does this mean to you?

I'd give my left arm (not really) to have the renovation knowledge you have. Please, shoot me a message anytime if you're looking for some help on a project or just want to chat about the ATL market!

@Bill Hampton - I'll definitely check out the Atlanta REIA and will try to make some events soon. Question, this is something that just popped in my head and I've been doing some reading but don't have an answer. Can I flip several homes, then 1031 exchange into a bunch of rentals with the intention of holding in perpetuity and then refinance the (untaxed) equity out?

@Brenden Mitchum - I PM'd you, to answer your q's in this post - Buford is pricey, but I'd be willing to branch out 30 minutes or so. Also would consider buying in Henry County/Ola area, I grew up in HCo and my family lives down there and my dad would help on the reno. On the first 3 or so deals, I want them to be close(ish) by because I'll be doing most of the work. Once I start building up experience (and hopefully capital!) I'll feel more comfortable building up a team of contractors and start doing less and less of the work myself. I want to do most of the work myself to save money at first, obviously accounting for time. 

We came across quite a few homes in North Gwinnett that were ripe for flipping when we were searching for our current (or soon to be current) home. One in particular, we ALMOST put an offer in, was asking at 300k but ARV was easily close to 400. Needed new kitchen cabinets, replacing a little rotten wood, landscaping, new carpet in Bedrooms and a few walls knocked down. I could have done the full job for 25-30k or less depending on how much work I did my self, and easily sold at 380-390.

Regarding scaling, my wife is very interested in building a business out of all of this and we want to get to the point that she is able to quit her job and run the business full-time. Scaling to me would be, instead of doing my goal of 2 deals 2021, scaling means that we would have a pipeline of deals closing and getting to the point that we are flipping 10, 20, 50, 100 homes a year. So, start off small, learn the ropes and then scale by building teams.

@Brian Ellison - Know of any meetups in our specific area? Interested in starting one? We'll be settling in the new home mid-feb, we should link up. We love the Downtown(?) Suwanee area!

Tyler, 

I recommend the Georgia Real Estate Investors Association. Georgia REIA is a nonprofit and focused on education and networking.

I do not recommend Atlanta REIA. Atlanta REIA is very salesy.

They are two different organizations. 

@Tyler Evans Congratulations on the move and the success with your live in moves.  That is how we started in RE Investing 8 years ago.  It was a great way to build tax free capital to move forward with flipping & value add rental properties.  I also did a lot of the work myself and will continue to do some moving forward but have learned that time has value also, not just the value of your time but also calculate your monthly carry costs as part of your research.  Does bringing in sub contractors speed the process and not only save your time but also save cash by reducing your carry costs for the project.  Best of Luck! John

@Alexandra Hughes - know of any local to our area meetups? One of the area's we'd be interested in learning more about is the Lawrenceville/Lilburn/Duluth area. Just close enough of a drive to do a deal.

@John Sledge - 100% agree with you. It'll be tough to find that balance between doing the work myself and paying a sub-contractor to do the work time/money wise. I do work a regular 9-5 and it's either going to be working very late nights and every weekend, or pay someone else to do the work. I'm thinking working until 1am and all day on the weekends would get old after not too long!