Investor · Decatur, GA · Member since 2015 · 313 posts · 207 votes
8y
Yes strong schools make a big difference on MF properties in regards to tenant quality, appreciation, rent growth and turnover. MF is extremely cyclical and with yield at historic lows I have been selling rather than buying. Single family the yield factor can be compensated by the historic low interest rates and the ability to lock it in for the full amortization schedule of the loan versus commercial where the loan terms rarely exceed 10 years.
Rental Property Investor · Atlanta, GA · Member since 2016 · 325 posts · 253 votes
8y
MF in Atlanta, in the perimeter and outside metro area are priced too high to sustain the cap rates. I am looking for small to medium MF but have not came across anything appealing. If properties are priced too high and has poor rental history or below market rents, I think it will be hard to secure commercial loan.
I found a set of duplexes in Jefferson, GA near the new Kubota plant that was a good deal. There are many multi-families around that cap, but you have to get way out... I.e., Rome, Flowery Branch, McDonough, etc.
Real Estate Broker · Loganville, GA · Member since 2017 · 25 posts · 6 votes
8y
I understand the draw to multifamily with being able to scale. If the deals aren't there, do you wait on the sidelines or do you invest in SF? I haven't gotten the hair on my berries for multifamily yet. I am comfortable investing in strong school districts with SF, does the same apply for MF?
Rental Property Investor · Atlanta, GA · Member since 2016 · 325 posts · 253 votes
8y
I am kind of contemplating the same thing. I have several SFH so obviously leaning towards MF but the deals are scarce. even SFH are priced higher than usual. What's other BP investors are doing?
Here's a sample breakdown. You can get a duplex out in lawrenceville for about $180K. It gets approx $1600 in rent. The taxes are around $1600 a year. Insurance another $700 a year. If you buy the same house you're lucky to get $1395 a month in rent. Taxes around $2700 a year. I built an XLS and started running numbers on MF verus SF. SF *may* get more appreciation though with MF you can get the same if you improve to get rents higher. For example, you can get a duplex for around $110K, that's getting about $1000 a month in rent....improve it, and increase rents, and voila! you have a $160K property. I imagine that these MF's will significantly increase over time. Just ask the owners of this blog about the Denver market and how its done that 8).
Investor · Decatur, GA · Member since 2015 · 313 posts · 207 votes
8y
Yes strong schools make a big difference on MF properties in regards to tenant quality, appreciation, rent growth and turnover. MF is extremely cyclical and with yield at historic lows I have been selling rather than buying. Single family the yield factor can be compensated by the historic low interest rates and the ability to lock it in for the full amortization schedule of the loan versus commercial where the loan terms rarely exceed 10 years.
Acworth, GA · Member since 2017 · 18 posts · 21 votes
8y
I am planning a move to the Atlanta area in 2018. I am just starting out on my investing journey and have been looking to start with a duplex/fourplex. I have been running the numbers and I cant really find anything that will cashflow over $150 or so. Since I don't live in the area yet and have been doing my market research I was beginning to think perhaps I was doing something wrong. I'll glad (not really glad per-se) to see that I am not running my number wrong. I would love any advise and input from locals. My focus areas have been mostly Cobb county (I'm somewhat drawn to Smyrna) and north Paulding county. I'm finding more of the "bank for the buck" advantages in the Dallas and Hiram area. I am looking to house-hack for awhile until I get fully settled in in GA.
There is a shortage of multifamily in the greater Atlanta metro. You'll find better value the further you go out. There's still some good stuff out there.
Flowery Branch, GA · Member since 2016 · 4 posts · 0 votes
8y
Build it haha, I'm in the Commercial construction industry for 20 years. North of Atlanta is currently hot, we live in Flowery Branch SF homes sell within 2 weeks. Not many MF around, I have a proforma for student housing and also identified the property already zoned MF with 300 units will cost around $15 mil to do. I'm sure most developers that deal in these type of deals don't use BP but hey we can dream.
I'd stay away from Atlanta and ITP unless your have deep pockets.
Yeah I really don't have appetite for 300 units yet. I am eyeing deals around 5-45 units in 2018. It takes a lot of capital to do 300 units. Those are typically multiple investors going in on those types of deals. I have found commercial paper to help fund these types of projects though you need 30% to get them off the ground.
Marietta, GA · Member since 2017 · 17 posts · 2 votes
8y
I'm located in Cobb county GA and would also like some recommendations on where to be looking when it comes to buying multifamily homes also how do you DM?
Vendor · Mcdonough, GA · Member since 2017 · 11 posts · 13 votes
8y
In my service business, I have a few commercial office building clients which are selling and I see a lot of nice vacant office buildings (say 20-30 units) going cheap in outer perimeter cities of Atl.
Update: I've recently did a renovation on one of the four units I have in two duplexes that sit side by side. I was able to increase the rent from $500 to $700. If I can do the same with the remaining 3 I'll have a very good cap rate!
Investor/Real Estate Agent · Atlanta, GA · Member since 2014 · 63 posts · 18 votes
8y
Any updates on the MF market in Atlanta? I'm looking to house hack a duplex/quad and I'm hoping to find a place in Cobb that will cash flow when I leave one of the units
All, I am trying to close a MF deal, where I have 30% down and my go to (State Bank and Trust) currently doesn't have appetite for any MF commerical deals. I need $1MM any advice on who I can talk to to make this deal happen?
Laguna Niguel, CA · Member since 2017 · 24 posts · 1 vote
8y
@David N Peterson Try Quantum National bank . Milton branch and ask for Mark Nay. Dm me if you need his phone number. I like to hear more about your MF. How many units and where? Do you have partner on this deal ? How do you find the deal ? What is the cap rate and coc?
Thanks. Its a deal that's currently on FMLS. 44 Unit apartments, $1.3MM. I don't think I'm going to be able to swing the deal, but if you know of anyone interested have them reach out.