Developer · Augusta, GA · Member since 2018 · 40 posts · 20 votes
Hows it going BP? New to BP other than viewing the Podcast. I'm still new to real estate and consider myself in the education stage. I recently moved to the Augusta, Ga area from Northern Virginia and I'm originally from Boston, MA. Coming from saturated and expensive markets, I was very impressed with the low purchase prices of homes in GA.
I recently purchased my first property with my fiance in February. I paid close to asking price, but it was the perfect property for us and we were tired of looking at the same old same basic ranch homes in fair neighborhoods. As I'm looking to expand my portfolio and have found a property rental property which will provide cash flow and is about 30k under the actual value.
I have two main questions:
1) How much under the asking price should I offer?
2) What lending options should I consider? I could pay 20% down for a second home, though this isn't preferred.
You will definitively find better home values in Atlanta than here in NOVA. Answering your questions:
1. You don’t have to make an offer based on the asking price. You have to analyze a property and, after knowing (or assuming to the best of your knowledge) your net income, then make an offer that works for you.
In today’s market, asking price is usually pretty high and you will find that most properties you find don’t work as an investment property. Keep analyzing, make tons of offers that work with your numbers, and you will end up finding something. Better wait to find a good property than buying a bad one.
2. If you only have one loan and are looking to purchase a SFH or up to 4 units, a conventional 30 year fixed mortgage will be your cheaper option. Yes, you will have to put 20-30% down (you can get creative and ask the seller you carry this portion if you don't have it, ask friends and family, partner with someone, etc.) and your credit and DTI must meet the bank requirements.