Multifamily BRRR deals in Atlanta

Wes Crafton · 2019-12-29T10:02:08-08:00

Hi everyone!This is my first BP post after listening to several podcasts, reading books and sifting through various discussions on BP. I am in my mid thirties and somewhat new to the field of commercial real estate but for the past three years I have been working as a registered commercial appraiser in Atlanta. Prior to my appraisal experience, my family and I sold our engineering firm in Cobb County and I have a fair amount of cash to invest in a multi family property- I have approx. $700k and thought about quitting my job now and started knocking on doors in Atlanta looking for a good BRRR deal. I know the answer is obvious to some of the younger folks out there on BP, however I have a family to raise and bills to pay but at the same time I long for financial flexibility offered by MF. A lot of the podcasts I listen to seem to have the same regurgitated story of house hacking with say a husband and wife with no kids and don't have a lot of cash. My circumstances are slightly different and we are living comfortably with my salary and diversified stock portfolio. After working in commercial RE for a few years I am quickly discovering $700k doesn't go too far especially in this market. I seem to be caught in between starting with several SFR BRRR deals or just waiting for a downturn and deploying all that cash for a multifamily. I hate timing the markets and I personally don't see a recession coming anytime soon but I am curious what the Pros on this board would recommend doing given my current situation. Lastly, I have little experience with rehabs and was considering working for a property managment or asset management firm to gain skills, continue having an income and prepare for a downturn. Thoughts/partnerships/new relationships are welcome! Thanks y’all!

Bryan MitchellPro Member

Rental Property Investor · Columbus, GA · Member since 2016 · 623 posts · 337 votes

6y

Wes, you're about to get bombarded with comments from those with Congratulatory responses, advice from a variety of Experienced individuals, and those who will subtly offer syndication opportunities. People will ask you what your risk tolerance is and and provide legal advice or considerations regarding the larger sum of money you have to invest which happens to be more than what most on bigger pockets have. They'll discuss forming a trust, forming an LLC, diversifying the $700K into multiple smaller deals, and some may even advise you to hold on and wait for a downturn and then pour the entire amount into it. Good luck!

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Brenden MitchumBusiness Member

Rental Property Investor · Atlanta, GA · Member since 2019 · 1k+ posts · 872 votes

6y

Hey @Wes Crafton! First off, welcome to the BP community!

While I am definitely not a pro, I can offer some advice that I believe many pros here would give.

So essentially while you don't have enough capital to go do some huge commercial deal on your own, you do have a myriad of options. First, there is syndication. Having no first hand experience yet, you will likely have to join a deal as an LP or partner with some other experienced investor(s) as a GP. Being an LP may be ideal for you if you do not have a ton of free time at the moment and depending on who the GP(s) is/are you could even gain some valuable experience to do your own syndication next. However, if you really want to dive straight in, you'll want to go the GP route and start looking for deals and networking to make this happen.

You also have a ton of options in the residential realm. Doing some BRRRR deals would be a fantastic option for you, especially if you really want to quit your job and dive in head-first. And you definitely do not need to start with SFH, unless you really want to. There are several areas in greater Atlanta with good BRRRR MFH opportunities, even in the current market cycle. With that kind of money, you could easily get a MFH with cash and refinance it to get your money back after the rehab to rinse n' repeat This is actually an ideal BRRRR situation (one that many cannot afford) because you do not have to deal with finding any private or hard money.

That is just one residential option. You can even grab several low rehab properties (SFH or MFH) and simply go the buy&hold route, while keeping your W-2. I would not recommend the flipping route if your goal is financial flexibility since that is just another full-time job that builds capital.

Honestly with capital like that, the options are practically endless and as @Bryan Mitchell suggested I am shocked more pros have not added their two cents.

Anyways, I hope that helped at least a bit! Feel free to pm me with questions anytime!

[email protected]404-737-0018

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Marc Brenner

Realtor · Atlanta · Member since 2018 · 126 posts · 81 votes

6y

Hey @Wes Crafton, welcome to the BP community.

First, I would recommend you look into joining a local REIA like GAREIA. You will meet many experienced investors there who can offer guidance and opportunities to partner on deals.

My two cents is - you already have significant capital and would likely prefer to keep it working for you rather than it all being tied up in one or two multi-family properties. The BRRRR method would allow you to do this and is in some ways easier to do in the commercial space than in SFR's.

Why not start off gaining experience and a little monthly cash-flow by starting to BRRRR a few SFR's? Once you get comfortable with the process and build out your team, you can aim to acquire a multi-family building and force equity through improvements / raising rents.

You should be able to accomplish this without having to quit your job. A few good Realtors, Wholesalers, and networking with other investors is all you need to find good deals.

Best of luck to you Wes.

2 Reply

Bryan MitchellPro Member

Rental Property Investor · Columbus, GA · Member since 2016 · 623 posts · 337 votes

6y

Originally posted by @Marc Brenner:

Hey @Wes Crafton, welcome to the BP

.....My two cents is - you already have significant capital and would likely prefer to keep it working for you rather than it all being tied up in one or two multi-family properties. The BRRRR method would allow you to do this and is in some ways easier to do in the commercial space than in SFR's.

Why not start off gaining experience and a little monthly cash-flow by starting to BRRRR a few SFR's? Once you get comfortable with the process and build out your team, you can aim to acquire a multi-family building and force equity through improvements / raising rents.

Marc makes a good case for starting out slower and learning. I like this for me too but it’s not for everyone. You don’t need to rush your way to success (or failure). Have you heard the saying “rushing to failure “. I suppose determining your level of involvement you desire is a major factor in one’s (my) previous investment decisions.

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Wes Crafton

OP

Appraiser · Kennesaw, GA · Member since 2017 · 5 posts · 1 vote

6y

Gentlemen,

Thank you for your wisdom and sharing your experiences. Great discussion here and I am feeling a good bit more confident. I do believe as @Marc Brenner pointed out that you it may be good to crawl before you run may be the better route before investing all in one location/one multifamily. The more I speak to ATL multi fam brokers I hear the deals in the $5mm to $10mm range are best because it pushes out the smaller investors and are often not worth the time of the larger institutional guys. Also, this price range will buy a good location in a decent neighborhood with decent scale- 30+ units. Thank you @Bryan Mitchell for your suggestion to follow this as well.

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Multifamily BRRR deals in Atlanta

Multifamily BRRR deals in Atlanta

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