Hello bigger pockets family, hope this post finds you well.
About a year ago I posted asking for advice for getting started into real estate. I greatly appreciate everyone that responded to my post.
As an update I have done 5 wholesale deals in the last 11 months and now I’m getting decent traction by staying consistent.
I have invested a lot of time in myself looking to learn as much as possible, but I realized I wouldn’t learn without action.
So here I am seeking advice once again as I’m barely scraping the surface in this business.
I have primarily focused on single/ multifamily homes in the greater Atlanta/ Gwinnett area.
However, after letting everyone know I’m in the real estate business a buddy of mine reached out looking to sell a condominium he has in south Atlanta. (Not really a market I target)
It is a section 8 rental where the tenant is paying him $200 and $850 from the state ($1,050 total)
$230 in Hoa, he purchased it for $137k and is asking $100k
The apartment is in pretty decent condition minus cosmetic repairs
But after looking at comps, units in this complex are going between $110-$115k
I’m not too certain if this a deal. But I’m looking to help him get rid of this property because he is out of state and has motivation to sell fast..
I haven’t had any luck with my buyers because they only focus on Multifamily or single families.
So what would be a good way to help in this situation?
I would say that is too pricey for you to pick up. Many investors use the 1% rule to evaluate their rental properties. In this case, you are getting $1,050 a month in rent minus the $230 HOA fee and even if you sold it to an investor for 100k (no profit for you), with the cosmetic repairs they will probably be all in around $110,000, which is way under a 1% deal. If they were to use cap rates, it would be an 8.9% cap rate. There may be someone willing to buy at that price, in order for you to make anything on it you need to get a price break.
I hope this helped! Feel free to reach out with any other questions you may have.