All Forum Posts by: Azeez K.

Hi John, 

Couple questions

1. Your current loan is that under an LLC? or did you buy in someone's name and the Quit Claim Deed to an LLC?

2. Does this LLC have a domestic partner?

3. What is the foreign shareholder equity share in the LLC?

4. What is your current interest rate on Property 1?

Typically, Banks are hesitant to provide a HELOC on an investment property for various reasons unless the property is (unencumbered) i.e. paid off. However, PenFed is one bank that provides HELOC under an LLC but your cost of finance will be higher given the current market situation. Their processing times are ridiculous a few months (super slow). You can certainly get HELOCs done but a lot of it depends on your existing relationships with Banks.

If your property is at a higher interest rate and if the numbers work you could cash out refinance into a portfolio loan and buy both properties. However, the minimum Debt service coverage ratio would be around 1.25 (higher the better)

Hope this provides some guidance. However, once you answer the above questions then it will provide a better understanding and can brainstorm creative ideas. 

Hi @Cameron Cooper

I am very familiar with the area and have over 35+ rentals n the area. Belvedere Park is a good long term buy and hold. Dekalb county is a pain to deal with and I am not a big fan of the county. Generally, speaking the county has a lot of issues. House hacking is certainly possible and is a good option for first time home buyers. 

Feel free to hit me up if you have any questions. 

Hi @Tiffany

I have first hand knowledge on STRs in the Atlanta market. Lets connect live and I can answer your questions. You asked a loaded question so best to answer your questions live so I can answer specific questions. Feel free to DM me and we can connect.

Good Luck
 

Hi @Lauren Salvani

Firstly, sorry to hear about your issues. However, this is unfortunately part of the business. In regards to your questions. 

Ikea Kitchen question (your separate thread) - Firstly, on your thread on Ikea kitchens I would avoid it because they have horrible customer service and they take forever to install kitchen (speaking from experience). Don't take my word for it but check out the BBB reviews on Ikea https://www.bbb.org/us/pa/cons... I would certainly avoid that. If you are interested to know the process then you can pay $199.00 or so to get their kitchen designers to come out take measurements  > they do measurements > send estimates > you approve > you pay > 3-4 months out they schedule install > people come to install > they forget to bring some additional pieces > install the kitchen > wait couple weeks to install missing pieces > You get an ok quality kitchen

Countertops - Depending on your tenant profile & rental price it may dictate what you install. Generally, I would recommend install a stone countertop as the cost difference is not that bad $400 - 600 ish but it would be lasting better in the long run and plus attract better tenant profile. For ex White Quartz stone counter top is about $36 ish/sqft & may cost about 1800 - 2000 for a standard kitchen. I can certainly recommend a good countertop guy. It's best to get 3 quotes for any job. 

Flooring - I have a good flooring contractor who I can recommend to get the job done. He can send you what'sapp videos etc given you are located out of the country. 

Happy to provide additional guidance. Good luck and much success.

Hi Justine, 

There are lots of things to consider in terms of surveys, easements, zoning, civil engineering, watershed, architecture etc etc. You provided a high level overview but devil is always in details. Feel free to connect and I can provide additional insights & guidance on initial feasibility. 

Good luck & much success 

Hi @Ana Cristina

Welcome to BP community. STR certainly lucrative but there would be lots of factors to consider when deciding to buy something solely for the purposes of STR. In regards to occupancy you will have to do a little bit of homework to figure out the occupancy in your farming area. You can do so by doing research on occupancy rates using sites such as Mashvisor/AirDNA and in conjunction joining some local STR facebook groups and talking to STR owners in the area.

Given the interest rates are trending higher I would proceed with caution as prices tend to work inversely based on interest rates i.e. when rates rise prices fall when rates are lower property prices are higher.

In addition, look at STR ordinances in the county that can impact the numbers. I have a STR in midtown that was impacted by STR ordinance in Atlanta. However, we stay pretty booked during the weekends and have less occupancy during the week but it more than pays up just based on weekend occupancy.

There are several meetups in the city so keep an eye on BP meetups or FB meetups. If you have any questions feel free to hit me up. Hope the above provides you with some guidance to make an informed decision about investing.

Good luck and much success. 

@Bryan Kelly DCCU does not work for properties outside GA. Did you try PenFed I got a HELOC from PenFed slow process but it worked. Good Luck

@Melissa Burr yes there are STR restrictions that were introduced this year. Read more information here https://www.atlantaga.gov/gove...

Good luck

Hi @Audrey Easton

Go with HELOC and look at local community banks for example here in Atlanta Delta Community Credit Union would have better rates on HELOC compared to BofA so look around at local credit unions.

Good luck and much success

@Chris Stonestreet

Congratulations on pulling the trigger. Wish you much success in REI journey