New to BP - Michael in Atlanta, GA (Metro)

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New to BP - Michael in Atlanta, GA (Metro)

Michael Whillock
Member since 2019 · 9 posts · 2 votes

Hello everyone:

I joined BP about a month ago and am just now getting around to introducing myself on here. I figured it was time to check that off the list :).

I am currently trying to assess the current landscape to determine how and where to invest next. I work full time so that means I'm mostly a passive investor. Well, I have an LLC in my SDIRA. So, by definition, I'm a passive investor there. However, I'm looking to create another, separate entity for real estate investments, as well.

While I'm trying to educate myself on the landscape, I'm looking for a SFH as a buy and hold rental. Ideally, it would be a BRRRR but it doesn't have to be if it cash flows well from day 1.

My long term goal, I assume, is similar to most everyone else — to have passive income exceed expenses. In reality, I’m just a small investor with big goals. 

Finally, I’m looking forward forward to chatting with the group. 

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Alec Granger
Real Estate Agent · Atlanta · Member since 2019 · 44 posts · 24 votes
6y

Hey Michael,

There are a few things that are suggesting the market is turning towards more of a BRRRR market. Just looking at the stats for 30310, which is a zip code that we have done a lot of business in the past, there are a few indicators. First, DOM are significantly higher than last year. In September 2018, the average DOM for this zip code was 7 days compared to 24 days in September 2019. Similarly, total months of supply went from 2.6 in September 2018 to 4.3 in September 2019. Although, it is still a seller's market, this would indicate that the market is becoming more saturated and is slowing down. However, the average rental rate is still increasing. From January 1 to June 1 this year, the average rental rate was $1,291/month. Since June 1 this year until now, the average rental rate was $1,470/month. This is a similar trend that we have observed across a variety of other zip codes as well. Along with increased rental rates, prices are still low enough for the cash flow to make sense. In 30310, the median sales price in September of this year was $234,500. The city of Atlanta as a whole has only seen a 7.8% increase in sales price since this time last year.

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  • Robert Collins
    Rental Property Investor · Greenville County SC / Atlanta, GA · Member since 2017 · 403 posts · 120 votes
    6y

    Hello @Michael Whillock welcome to BP 

    I’m new to the rei world myself & one thing that’s help me in my journey is the Bp meetup that’s held at the ivy Buckhead Atlanta every last Tuesday of the month. Great thing about the month the world famous @jscott will be attending this one so it’s one you don’t want to miss . I’ll try and share the link if bp allows . If it’s doesn’t show up , you can go to the event section and it will be there .

    I wish you all the success in your journeys 

    Robert 

    https://www.biggerpockets.com/... 

    0Reply
  • Ned CareyPro Member
    Moderator
    Investor · Baltimore, MD · Member since 2008 · 17k+ posts · 13k+ votes
    6y

    @Michael Whillock welcome to BP. We were all small investors with big goals once. Some of us are still small investors but were here to help none the less. LOL

    0Reply
  • Michael Whillock
    OP
    Member since 2019 · 9 posts · 2 votes
    6y

    @Robert Collins Thanks for the heads up. I have the details for the Atlanta meetup on 10/29 and am making plans to attend. 

    @Ned Carey Thanks for the warm welcome. We have to start somewhere...right? 😂 

    0Reply
  • Alec Granger
    Real Estate Agent · Atlanta · Member since 2019 · 44 posts · 24 votes
    6y

    Hey Michael,

    Welcome to the BP community! Real estate can be a great way to add extra cash flow and give yourself financial freedom. The Atlanta market especially is starting to turn and become a great market for the BRRRR strategy. How far into your process are you so far?

    1Reply
  • Robert Mitchell
    Contractor · Atlanta, GA · Member since 2014 · 130 posts · 25 votes
    6y

    Hi Michael

    Welcome to the BP community.

    0Reply
  • Michael Whillock
    OP
    Member since 2019 · 9 posts · 2 votes
    6y

    @Alec Granger Thanks for your response.

    I’m currently in in a phase of research, planning and preparation in deciding where to invest. Even though I live in Atlanta, I haven’t invested here. My other properties are in Memphis. So, I’ve been researching Atlanta a bit. Not just the areas but also lenders, property managers, contractors, and other providers needed to get a property closed, rehabbed, and rented. I do have financing with a pre-approval letter in place from a lender so I can move when the timing and deal is right. In short, I don’t want to secure a property without a plan. I’m also considering other areas out of state but that also requires more research and planning.

    The economic landscape is also changing and I'm keeping an eye out on that as well. What, in your opinion, are you seeing that tells you the market is turning to support BRRRR?

    0Reply
  • Alec Granger
    Real Estate Agent · Atlanta · Member since 2019 · 44 posts · 24 votes
    6y

    Hey Michael,

    There are a few things that are suggesting the market is turning towards more of a BRRRR market. Just looking at the stats for 30310, which is a zip code that we have done a lot of business in the past, there are a few indicators. First, DOM are significantly higher than last year. In September 2018, the average DOM for this zip code was 7 days compared to 24 days in September 2019. Similarly, total months of supply went from 2.6 in September 2018 to 4.3 in September 2019. Although, it is still a seller's market, this would indicate that the market is becoming more saturated and is slowing down. However, the average rental rate is still increasing. From January 1 to June 1 this year, the average rental rate was $1,291/month. Since June 1 this year until now, the average rental rate was $1,470/month. This is a similar trend that we have observed across a variety of other zip codes as well. Along with increased rental rates, prices are still low enough for the cash flow to make sense. In 30310, the median sales price in September of this year was $234,500. The city of Atlanta as a whole has only seen a 7.8% increase in sales price since this time last year.

    1Reply
  • Charlene Fetzer
    Investor · Nashville, TN · Member since 2019 · 40 posts · 25 votes
    6y

    @Alec Granger - This is all very helpful information, thank you for that. I am also in the research and prep stage of investing in Atlanta. My goal is to find a property in the next couple months to move forward. I grew up in the NW suburbs of Atlanta and know the future is bright ITP. I've been researching that exact zip code because I see it as a path of progress from what it used to be. Ive been trying to learn everything I can with every spare moment I have to make a smart investment in this area, recently becoming a Pro member after watching last weeks webinar on rental by Brandon. 

    @Michael Whillock Thanks for starting this forum and warm welcome to Atlanta 

    1Reply
  • Alec Granger
    Real Estate Agent · Atlanta · Member since 2019 · 44 posts · 24 votes
    6y

    @Charlene Fetzer No problem! Don't hesitate to reach out if you have any questions!

    0Reply
  • Bill HamptonBusiness Member
    Accredited Investment Fiduciary, AIF®, Financial Planner, Tax Strategist, Real Estate Investor · Atlanta, GA · Member since 2012 · 2k+ posts · 977 votes
    6y

    @Michael Whillock

    Welcome to Bigger Pockets. Good luck on your real estate journey. 

    404-482-3170
    Hampton Tax and Financial Services LLC4.7106 Reviews
    WebsiteView Page
    0Reply
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