Investor · Atlanta · Member since 2023 · 10 posts · 3 votes
REI based in Atlanta and I just purchased a bank-owned vacant Single-family property 3BR/2BA. Closed in Jan with a DSCR loan and now in need of funds for maintenance, light however necessary repairs, HVAC replacement, painting, furnishings, operational expenses etc. The plan is to use STR or MTR model until mortgage is paid in full. Hopefully this is the right group for this question.
Hi @Taqiyyah Ellis congrats on getting your deal to the closing table. If you can help with the terms of the mortgage I could better assess how I would work on this deal.
Have you considered lease option in it's current state? I've used this strategy in a similiar situation wherein the repairs needed to the property were made part of the agreement and the tenant buyer took possession with repairs needed and fixed the property to livable condition.
Also in the scenario I received $5.5K down payment on a 3 year term $1200 per month and P/I cost me $550 and I paid taxes and insurance. My expenses on that deal was $745 per month and tenant buyer paid for all of the utilies, upkeep of the property etc... I pocked around $430 per month with limited responsibility.
I was able to sell that property in 24 months to that tenant buyer and made a decent return.
This doesn't make sense for every property buy lease options are a way to take a property that is sitting, to a property that is producing income while limiting your expenses
Hi @Taqiyyah Ellis congrats on getting your deal to the closing table. If you can help with the terms of the mortgage I could better assess how I would work on this deal.
Have you considered lease option in it's current state? I've used this strategy in a similiar situation wherein the repairs needed to the property were made part of the agreement and the tenant buyer took possession with repairs needed and fixed the property to livable condition.
Also in the scenario I received $5.5K down payment on a 3 year term $1200 per month and P/I cost me $550 and I paid taxes and insurance. My expenses on that deal was $745 per month and tenant buyer paid for all of the utilies, upkeep of the property etc... I pocked around $430 per month with limited responsibility.
I was able to sell that property in 24 months to that tenant buyer and made a decent return.
This doesn't make sense for every property buy lease options are a way to take a property that is sitting, to a property that is producing income while limiting your expenses
@Taqiyyah Ellis, a business loan/line of credit or private lender will likely be your best and most realistic option. Unfortunately, most hard money lenders do not have loan products for maintenance funds/expenses. However, as noted above, I recommend exploring the offer and creative strategy of structuring a lease option. It sounds like there may be an opportunity there, given the scenario.
Taqiyyah - congrats on the purchase! I have some friends (and myself) that lend on these types of projects (private money) in ATL through GAREIA. We'd be interested at taking a look!
Sure, advise the best way to connect. Still learning how to navigate Bigger Pockets based on the rules, lol. I do have an info session scheduled several times this week via Eventbrite registration daily thru Thursday of this week and next week, however moved the 8:30PM ET to 6PM the week of March 10th.
Sure, advise the best way to connect. Still learning how to navigate Bigger Pockets based on the rules, lol. I do have an info session scheduled several times this week via Eventbrite registration daily thru Thursday of this week and next week, however moved the 8:30PM ET to 6PM the week of March 10th.
Sure, advise the best way to connect. Still learning how to navigate Bigger Pockets based on the rules, lol. I do have an info session scheduled several times this week via Eventbrite registration daily thru Thursday of this week and next week, however moved the 8:30PM ET to 6PM the week of March 10th.
Hi! What kind of info session?
Info Session on the REI project in Atl. Seeking advice on how to secure funds or resources to prep the property for renting in the MTR and STR market.