First-time fix-and-flip investor from Atlanta, GA

First-time fix-and-flip investor from Atlanta, GA

Real Estate Investor · Atlanta, GA · Member since 2017 · 15 posts · 3 votes

Hello everyone,

My name is Romont Johnson and I'm a 36 y.o. male living in Atlanta, GA (from Pittsburgh, PA).  I'm a Senior PHP Developer for a local chemical sales company where I've created and maintain proprietary sales and business management software.  

I've wanted to get into house flipping for the past 15 years but until recently I wasn't comfortable making the leap.  I've been educating myself in the subject for years.  In college I purchased Carlton Sheets No Money Down CD set and I've read a ton of books over the years.  I'm also subscribed to loads of business-related podcasts which eventually led me to the BiggerPockets podcast and fortunately this website.

My background in real estate began in 2007 when I purchased a duplex in the West End area of Atlanta.  A year after the purchase I was completely underwater due to the housing crisis and tenant quality soon began to degrade.  I eventually sold the property for a loss in 2013.  I purchased my second property, a 7 BR single-family home in Atlanta in 2011.  I recently sold the property for substantially more than the original purchase price.  The funds from the sale are giving me the confidence to finally take the leap into flipping.

My real estate goal for this year is to flip at least 2 properties.

I look forward to connecting!

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  • Real Estate Agent · Atlanta, GA · Member since 2016 · 127 posts · 48 votes
    9y

    Welcome @Romont Johnson!  Looks like you have done your due diligence, best of luck and many successes!

  • Investor · Pittsburgh, PA · Member since 2015 · 1k+ posts · 1k+ votes
    9y

    @Romont Johnson Nice to meet you Romont. I am a fellow pittsburgh native still living here going on 51 years. Good luck with your RE goals.

  • Kennesaw, GA · Member since 2016 · 52 posts · 9 votes
    9y

    @Romont Johnson I am in a similar spot with my RE investing cycle. It would be great to connect with like minded investors from the location market.

  • Investor · Athens, GA · Member since 2011 · 306 posts · 156 votes
    9y

    @Romont Johnson - Welcome to the BP.  Hope you find it treating you well and I am sure the connections you make here will be extremely helpful and plentiful.  Great work on the appreciation for that 7 BR - Are you going to 1031 that money so you don't have to pay any tax any time soon?  Is it too late?  There are projects avaialble all over Atlanta, dont get discouraged and dont worry about walking away from a deal.  

     @Alec B Calzada  Hey- I hear some good things about Augusta, as I am in Athens, not far from there. Why Augusta, or is that just the starting point for where your family/friends live?  The flipping opportunity could be there with less competition, but you also have less buyers who will pay for the big nice project you complete. 

  • Real Estate Investor · Atlanta, GA · Member since 2017 · 15 posts · 3 votes
    9y

    Thanks @Ryan Johnston and @Alex Deacon.

    @Kj Rustom, I look forward to connecting and seeing what we can do in this market.

  • Real Estate Investor · Atlanta, GA · Member since 2017 · 15 posts · 3 votes
    9y

    @Ethan Atkinson, I'm under the impression that the IRS doesn't tax a primary residence if you've lived there for a certain number of years.

    I found this on the TurboTax website:

    I was in the home for 6 years and profits didn't exceed the $500,000 threshold (I'm maried filing joint).  Am I missing something?

  • Dave FosterBusiness Member
    Qualified Intermediary for 1031 Exchanges · St. Petersburg, FL · Member since 2013 · 9k+ posts · 9k+ votes
    9y

    @Romont Johnson, No you got it nailed.  You lived in the house for 2 out of the 5 years prior to sale.  It was your primary residence not an investment property (although it ended up being a great investment).  So you can't 1031.  You get the benefits of the $500K tax free profit.  Congrats!

    The 1031 Investor5137 Reviews
  • Real Estate investor professional · Suwanee, GA · Member since 2016 · 233 posts · 81 votes
    9y
    Originally posted by @Romont Johnson:

    @Ethan Atkinson, I'm under the impression that the IRS doesn't tax a primary residence if you've lived there for a certain number of years.

    I found this on the TurboTax website:

    I was in the home for 6 years and profits didn't exceed the $500,000 threshold (I'm maried filing joint).  Am I missing something?

     Seems like you should be fine. As long as main residence and Married get away with up to 500k, single get away with 250k. 

  • Real Estate Investor · Atlanta, GA · Member since 2017 · 15 posts · 3 votes
    9y

    Thanks @Dave Foster and @Ralph C.

    I was getting worried for a sec.

  • Real Estate Investor & Consultant · Los Angeles, CA · Member since 2016 · 620 posts · 386 votes
    9y

    @Romont Johnson My suggestion is to go onto LinkedIn and search for the wholesalers and agents in your city and send them an intro on what you are looking to do. You'll probably have to reach out to 50 or so individuals to get a few good contacts. 

    Onwards!

    sjw

  • Investor · Athens, GA · Member since 2011 · 306 posts · 156 votes
    9y

    Come on out to the next Atlanta REIA and Georgia REIA meetings. There are some great people to connect with each meeting. Atlanta REIA even has an onsite renovation meetup to see what the experienced folks are doing. There area also indivudial smaller meetings for each side of town North, West, and South. Not sure why they gave up on the East side?

  • Real Estate Investor · Atlanta, GA · Member since 2017 · 15 posts · 3 votes
    9y

    @Ethan Atkinson I recently became a member of GAREIA.  I plan on being at the general meeting on Monday.

  • Investor · Greenville, SC · Member since 2016 · 19 posts · 8 votes
    9y
    Being from Atlanta, I highly recommend East Cobb County and Cherokee County due to their great schools and low crime. Fulton and Dekalb don't have well known schools, they have high crime rates, loaded with horrendous traffic and much higher taxes than Cobb and Cherokee. Hope that helps!
  • Real Estate Investor · Atlanta, GA · Member since 2017 · 15 posts · 3 votes
    9y

    @Micki Larkin Have you done deals in those areas?

  • Real Estate Investor · Atlanta, GA · Member since 2017 · 15 posts · 3 votes
    9y

    @Ethan Atkinson Sounds like a plan 

  • Realtor · Detroit, MI · Member since 2015 · 211 posts · 104 votes
    9y
    Romont Johnson my partner and I have had success in Dekalb County, I can send you photos and stats of her recent project, you can email me for details
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