Atlanta Help BRRRR, GC, REALTOR and PROP MGMT

4 Replies

Hi Folks,

My parents have owned property in NYC. I don't think I have that opportunity to put my hands on a Million dollar multi family just yet.

I have been looking into the atlanta market to do a BRRRR, all numbers made sense until after I realized that doing the REFI Cash out will increase mortgage payment, to where its negative cash flow. I dont want to liquidate my stock portfolio which ill have to pay almost 24-32% tax on for something as small as 50-100 cash flow.( any tips on how to avoid heavy taxes is helpful )

House needs full rehab, average arv is about 300K

whats is a rough estimate for a full house rehab? (walls, kitchen, flooring, bathroom etc for a 1200 sq ft home.) this will help determine how much I should be all in for.


Is it safe to buy a house with half rehab done on it? why would the last investor bail?

In need of property managers, realtors, and GC in atlanta area. any suggestions would be great thank you bigger pockets Community.

Originally posted by @Iqbal Ahmed :

Hi Folks,

My parents have owned property in NYC. I don't think I have that opportunity to put my hands on a Million dollar multi family just yet.

I have been looking into the atlanta market to do a BRRRR, all numbers made sense until after I realized that doing the REFI Cash out will increase mortgage payment, to where its negative cash flow. I dont want to liquidate my stock portfolio which ill have to pay almost 24-32% tax on for something as small as 50-100 cash flow.( any tips on how to avoid heavy taxes is helpful )

House needs full rehab, average arv is about 300K

whats is a rough estimate for a full house rehab? (walls, kitchen, flooring, bathroom etc for a 1200 sq ft home.) this will help determine how much I should be all in for.


Is it safe to buy a house with half rehab done on it? why would the last investor bail?

In need of property managers, realtors, and GC in atlanta area. any suggestions would be great thank you bigger pockets Community.

What you don’t make in cash flow you will make in appreciation and you will get all your money back so you can buy another property while having a tenant pay your mortgage. Make sure you consider all expenses, vacancy and prop management if you haven’t. That could eat into your cash flow. A full gut rehab can cost you anywhere between $75-85 a sqft here in Atlanta. It will depend on your GC and your finishes. Add 10-15% for any surprises 

Hey @Iqbal Ahmed , welcome to the BP community!

Yeah, you said it yourself - the problem with BRRRRing isn't always that you can't get the ARV high enough, but rather that the ARV outpaces rent. This is very common in many of the MSA's mid to high-priced areas. Unless you do rent by the room or find something with multiple living spaces, it is tough to cash flow at $300k+ ARV.

The bright side is that you are likely to see strong appreciation. However, then you might as well leave your money in the stock market since you're likely to win there over a long period too. 

If cash flow is part of your goals and strategy of choice, your best bet would be to either start looking in areas with better ARV to rent ratios or get more creative in the pricier areas (rent by the room, mother-in-law suites, ADUs, etc.)

And please, feel free to reach out anytime if you have other questions or just want to chat!

@Iqbal Ahmed if you have held the stocks for over one you may only be liable for capital gain taxes.   @ Duane Alexander confirmed the rough rehab costs.  

You may want to see if they pulled any permits from the city/county. If permits were pulled, you may need to work with a specific sub to complete the work that they pulled a permit for.  The seller may have discovered something after tearing down walls or he could have underestimated the size and cost of rehab.   

Good luck

Thank you so much for the insight guys ! Much appreciated. I have read on here about a horror story about a single individual who purchased a house rehabbed and when they went to appraise it their purchase price got evaluated into the appraisal and got appraised the same price that he purchased it for and couldn’t force appreciation. 

I feel all my tech stocks are doing okay but the bubble will burst and pulling out money beginning of 2021 I won't have to pay gain tax till 2022 but hopefully BRRRR'ing a house will give me and asset and if cash flow starts I can depreciate and offset some of those gains and start building portfolio.

I’ve been interest in Atlanta as I heard Microsoft just purchased an enormous amount of land. Hopefully that’ll increase rents as well as appreciation? 

If there’s tax consultant and realtors familiar with the area I’d love to talk and get a few ideas about Atlanta’s market. 

Thanks BP for being there for us. Once fear is out and data is used like kris krohn says we’re able to make a more educated decision and take emotion out. 

Let’s start building wealth!!! :-D