Last couple deals over last few months (note: I'm just a bit outside "metro" ATL in Cherokee and Cobb and Cartersville, but market is just as hot)
- BRRRR PP $122k, repairs 8k, just appraised for 207k (rents for 1.5k)
- BRRRR PP $80k, repairs $500, arv 120k (rents for 1k)
- closing on another BRRRR PP 122k, repairs 3k, arv 190k-200k (rent 1450)
- Just "flipped" a house in Kennesaw. Bought for 78k, just de cluttered for 1.5k, listed on MLS and sold yesterday for 150,500. (house needs about 60-70k which I didn't want to do). ARV probably 230k. Guessing they'll just rent it or they'll try and bump the comps (which that's too risky of a strategy for me).
-------------------
All off-market deals I sourced.
As proven by my last deal there, trying to buy on market at 75-80% arv - repairs is impossible. I don't even look anymore.
@Kalim Kalla : I am looking for both...but since I am a OOS investor..I can only handle cosmetic repairs nothing too major. Lets connect if you fell you can assist in finding solid B class rental ppties
@Ferry Vendy hey, just saw your respond to my comment on your other posts. I want to follow this thread and know what investors are buying and how much they have to offer above asking price just to get it.
Also the bidding war situation get very frustrating starting late September to me. I was able to find turn key rental around 230k that can rent for 1500-1600 without adding any $$ in early September.
Depends on what you mean by a "great" deal. I would argue Atlanta generally doesn't have "great" deals anymore. That was years ago. But there is still cash flow (not huge amounts, but it's there) and there are still deals.
@Ferry Vendy hey, just saw your respond to my comment on your other posts. I want to follow this thread and know what investors are buying and how much they have to offer above asking price just to get it.
Also the bidding war situation get very frustrating starting late September to me. I was able to find turn key rental around 230k that can rent for 1500-1600 without adding any $$ in early September.
I am also curious to know how much more $ people pay for the offer, I went to see a property last week and saw a lot of other investors. pretty sure it was a bidding war at that point.
Depends on what you mean by a "great" deal. I would argue Atlanta generally doesn't have "great" deals anymore. That was years ago. But there is still cash flow (not huge amounts, but it's there) and there are still deals.
I would love to use BRRRR as my main focus, in order for it to work I need to find one with a max offer of 75% - Rehab cost of ARV, that would be the "GREAT" deal in my opinion.
And I agree with you, there are still cash flow properties I can get but I don't want my fund to be "stuck".
Great topic, man! As you can see, great deals are pretty rare in the Atlanta area right now. However, they do absolutely still exist, depending on your strategy and if you know where to look.
One of my clients closed on a sweet little section 8 condo last month. Purchase price was $80k and rents out for about $1k.
Another client is under contract on a flip right now for $140k and ARV is $280k with an estimated $70k in renovations. We're out of DD and feeling confident this one will close too so fingers crossed!
Neither is an absolute home run but definitely solid deals. That being said, both clients took about a month of searching to find these deals so we are certainly not swimming in them here in Atlanta. Also, both deals were in Decatur so might be an area to keep your eyes on.
Please, feel free to reach out anytime if you have other questions or just want to chat!
Last couple deals over last few months (note: I'm just a bit outside "metro" ATL in Cherokee and Cobb and Cartersville, but market is just as hot)
- BRRRR PP $122k, repairs 8k, just appraised for 207k (rents for 1.5k)
- BRRRR PP $80k, repairs $500, arv 120k (rents for 1k)
- closing on another BRRRR PP 122k, repairs 3k, arv 190k-200k (rent 1450)
- Just "flipped" a house in Kennesaw. Bought for 78k, just de cluttered for 1.5k, listed on MLS and sold yesterday for 150,500. (house needs about 60-70k which I didn't want to do). ARV probably 230k. Guessing they'll just rent it or they'll try and bump the comps (which that's too risky of a strategy for me).
-------------------
All off-market deals I sourced.
As proven by my last deal there, trying to buy on market at 75-80% arv - repairs is impossible. I don't even look anymore.
Great topic, man! As you can see, great deals are pretty rare in the Atlanta area right now. However, they do absolutely still exist, depending on your strategy and if you know where to look.
One of my clients closed on a sweet little section 8 condo last month. Purchase price was $80k and rents out for about $1k.
Another client is under contract on a flip right now for $140k and ARV is $280k with an estimated $70k in renovations. We're out of DD and feeling confident this one will close too so fingers crossed!
Neither is an absolute home run but definitely solid deals. That being said, both clients took about a month of searching to find these deals so we are certainly not swimming in them here in Atlanta. Also, both deals were in Decatur so might be an area to keep your eyes on.
Please, feel free to reach out anytime if you have other questions or just want to chat!
HI Brenden,
Thanks for reaching out, I am most likely will implement the BRRRR strategy and maybe a flip.
It seems to me that you got both of your client a pretty solid deals,
you got a 1% rule on the rental and a perfect 75% rule on the flip, which are what I've been looking for the past few weeks now and can't seem to find one.
I have been looking at almost every part of town and still not sure if I have to narrow it down to do a more extensive search on certain area.
Last couple deals over last few months (note: I'm just a bit outside "metro" ATL in Cherokee and Cobb and Cartersville, but market is just as hot)
- BRRRR PP $122k, repairs 8k, just appraised for 207k (rents for 1.5k)
- BRRRR PP $80k, repairs $500, arv 120k (rents for 1k)
- closing on another BRRRR PP 122k, repairs 3k, arv 190k-200k (rent 1450)
- Just "flipped" a house in Kennesaw. Bought for 78k, just de cluttered for 1.5k, listed on MLS and sold yesterday for 150,500. (house needs about 60-70k which I didn't want to do). ARV probably 230k. Guessing they'll just rent it or they'll try and bump the comps (which that's too risky of a strategy for me).
-------------------
All off-market deals I sourced.
As proven by my last deal there, trying to buy on market at 75-80% arv - repairs is impossible. I don't even look anymore.
Hi Joe,
Went to Cherokee last week to take a look at property
- Flip PP $140k, Rehab estimated $120-$140k, ARV $320k.
of course I didn't get any of these because I don't think it'll work with my strategy.
that basically proves your point which is almost impossible to get a buy of 75% ARV - Rehab unless I plan on working on the rehab myself to cut the cost which is not an option at all.
Yet somehow you still managed to closed on 3 great deals though, kudos to you.
What kinds of repairs only cost $8k and $500 but gave such a huge jump for ARV?
And how did you find those deals?
Keep me in mind when you have an extra deals you want to pass on.
Last couple deals over last few months (note: I'm just a bit outside "metro" ATL in Cherokee and Cobb and Cartersville, but market is just as hot)
- BRRRR PP $122k, repairs 8k, just appraised for 207k (rents for 1.5k)
- BRRRR PP $80k, repairs $500, arv 120k (rents for 1k)
- closing on another BRRRR PP 122k, repairs 3k, arv 190k-200k (rent 1450)
- Just "flipped" a house in Kennesaw. Bought for 78k, just de cluttered for 1.5k, listed on MLS and sold yesterday for 150,500. (house needs about 60-70k which I didn't want to do). ARV probably 230k. Guessing they'll just rent it or they'll try and bump the comps (which that's too risky of a strategy for me).
-------------------
All off-market deals I sourced.
As proven by my last deal there, trying to buy on market at 75-80% arv - repairs is impossible. I don't even look anymore.
Hi Joe,
Went to Cherokee last week to take a look at property
- Flip PP $140k, Rehab estimated $120-$140k, ARV $320k.
of course I didn't get any of these because I don't think it'll work with my strategy.
that basically proves your point which is almost impossible to get a buy of 75% ARV - Rehab unless I plan on working on the rehab myself to cut the cost which is not an option at all.
Yet somehow you still managed to closed on 3 great deals though, kudos to you.
What kinds of repairs only cost $8k and $500 but gave such a huge jump for ARV?
And how did you find those deals?
Keep me in mind when you have an extra deals you want to pass on.
All deals were offmarket. So it's marketing to sellers, going to house, building rapport and making an offer.
The ARV isn't jumping because of repairs, it's simply I'm buying at a discount. I don't try and force appreciation as it's bitten me in the butt before.
Buy at a discount with only the repairs you need to get to that number (i.e. look at comps), then hold or sell.
The $500 was to remove a small tree the insurance company required :D
@Ferry Vendy As other have mentioned, I think it's all about where you source your deals. MLS is especially poor for find deals right now because the supply of houses is way down and has been since COVID. Therefore, buyers are scrambling to get into a fewer number of listings and driving prices up.
That being said, in off-market properties you can still find great deals, so it’s all about setting up systems to find those deals. Have you interacted with any wholesalers in the neighborhoods you want to invest in?
Atlanta proper is a tough market. We live about 50 miles south and had to look even further south that that to find properties that worked for us. Once you get into the more rural areas of Georgia you'll find inexpensive properties but the rents are lower. A lot lower. But it is much easier to achieve the 1% to 2% ratio. In the past year I found a 2/1 duplex for <$50k and purchased a couple SFR from a wholesaler in a little country town for under $40k (for two houses) Rents are low though starting at about $400 for 2/1 houses. (there's room for some rent increases)
Care to share what areas in ATL are you seeing deals and at what price?
I primarily work with turnkeys, which there aren't really any more of in Atlanta. So with no turnkeys, I'm working with the closest thing I can get-- all the ones I deal with were formerly sold as turnkeys and the owners now are ready to offload them. So they vary in time since rehab, etc. I say that to say... I can't speak to flip properties, wholesaled properties, etc. Mostly just on the turnkey or turnkey-related front. Prices on those are upper $100s, low $200s at most. Douglasville, Covington, McDonough, Hampton... basically I-20 and south.
Those are awesome deals. What is happening in Cartersville to drive up the prices? Is it only because prices is Atlanta have increased so much that people are having to move farther away, or are there other fundamentals?
Last couple deals over last few months (note: I'm just a bit outside "metro" ATL in Cherokee and Cobb and Cartersville, but market is just as hot)
- BRRRR PP $122k, repairs 8k, just appraised for 207k (rents for 1.5k)
- BRRRR PP $80k, repairs $500, arv 120k (rents for 1k)
- closing on another BRRRR PP 122k, repairs 3k, arv 190k-200k (rent 1450)
- Just "flipped" a house in Kennesaw. Bought for 78k, just de cluttered for 1.5k, listed on MLS and sold yesterday for 150,500. (house needs about 60-70k which I didn't want to do). ARV probably 230k. Guessing they'll just rent it or they'll try and bump the comps (which that's too risky of a strategy for me).
-------------------
All off-market deals I sourced.
As proven by my last deal there, trying to buy on market at 75-80% arv - repairs is impossible. I don't even look anymore.
@Ferry Vendy I'm glad you brought this up as I'm having the same issue as well. It sounds like Atlanta market is on fire right now. I haven't been able to find deals where I could cash out most of money. I would have had to leave around $30K-$50K in the deal, which I think too much? This would lower the COC return as well.
Ideally we would like to cash out all our investment, but in this current market, I'm curious how much would you comfortably leave the money in the deal? Also what COC return are you aiming for?
@Daniel Budihardjo leaving $30k-$50k is definitely way to much imo, if that's the case it is most likely it wasn't even a good deal in the first place.
Which is basically what we've been seeing with almost all of MLS deals lately, ARV - 70% without any room for rehab.
I'd be happy to get a 10% COC from my initial investment.
@Ferry Vendy deals in Atlanta are not easy, but also not impossible. I have taken a more hands on approach to create deals an it has paid off tremendously. I would love to connect and explain in more detail.