Atlanta rehab buy and hold is not DEAD!
Investment Info:
Single-family residence buy & hold investment.
Purchase price: $130,000
Cash invested: $19,000
Alot of people will tell you that buying a resonably priced home in Atlanta is IMPOSSIBLE, and you have to be a ninja to pull it off. Well we recently purchased a SFH split level home in Atlanta that needed a bit of TLC, cosmetically renovated it and rented it out to a wonderful tenant without A. Being a Ninja, or B. Throwing a ridiculous amount of money at the thing.
What made you interested in investing in this type of deal?
I am in love with the idea of buying and holding, so once this deal came across my plate I was eager to take action. The location, price, and renovation needs were right up my alley and fit the criteria I set for my investment strategy. This goes to speak to having written down criteria and knowing exactly what you're looking for.
How did you find this deal and how did you negotiate it?
I found this deal through networking and letting those around me know what I'm looking for. Once this deal popped up on a local real estate agent's radar, I was one of the first people they thought to call about it coming onto the market and after a tour and inspection we closed the deal through a brief back and forth negotiation.
How did you finance this deal?
Traditional bank financing.
How did you add value to the deal?
Added value through a full cosmetic interior rehab.
What was the outcome?
The outcome was a rehab process over the course of 1.5 months through the holiday season, and placing the home for rent and having a strong tenant with a lease signed roughly 3 days after the home was listed.
Lessons learned? Challenges?
A few key lessons learned for me are how to account for small easy to miss items in a rehab cost that may fly under the radar on the initial untrained eye look-over, and how to eyeball a rehab due to the fact that I was fully involved in all of the purchasing and planning for each part of the rehab for this home.
A key challenge that I faced was with tenant screening and how to best handle extremely high call volume and listing interest.
Did you work with any real estate professionals (agents, lenders, etc.) that you'd recommend to others?
Yes I worked with granite professionals, painters, electricians, plumbers, and flooring professionals that I will recommend at the drop of a hat! Please reach out to me for their information if you're considering any of the above!
