All Forum Posts by: Berenger Greer

 Nothing wrong with staying consistent with the duplexes if you understand how they work and how to get them leased up to quality tenants. I am not sure what part of Atlanta you are in, but in my experience, finding a quality duplex under market value is a bit difficult in Metro Atlanta. 

How much equity do you have established in these units and what part of town are you in? I know SW atlanta has a decent inventory of fix and flip properties that can give you a chance to scale quicker and add more cash to your pocket. 

It really depends on how much time you have on your plate, and the proximity of the deal. 

As a property manager myself, I typically encourage investors to give it a shot for a few months as you can always go ahead and hire a company at any point.

STR management can be expensive, typically about 15-20% here in Atlanta, so it could be worth saving some money and seeing how it goes.

Important note, do be sure to have good contractors, handy men, cleaners, etc. if you are to self manage. A PM's access to a good network is a huge bonus when working with them. 

Jaylin, 

Great work on those two properties, can you describe how these house hacks functioned for you and how you were able to procure the deal, house hack, and make it into an investment? I only ask because there are a few different strategies and knowing what you're accustomed to will be very helpful. 

• -General advice on how to scale wisely from here—especially over the next 1–3 years.
• Lets see what you're use to, I think house hacking is a great way, and I can explain some tips on expanding door count, getting cashflow, get quality tenants, and ensure security with long-term leases. It'll be about 5% downpayment and up to $20 rehab in each property, but it does work. 
• -Thoughts on using existing equity to fuel future deals.
• Going to have to have a look at the established equity and new loan rates for this, there are ways to make it make sense, but as soon as you pull existing equity you will be subject to a new interest rate that can end up hurting your monthly returns more than helping. 
• -Any creative strategies you’ve used to grow beyond the “starter phase” and build momentum
• Flips, BRRR, and more househacking. I know you feel like you're still a rookie, but with two doors under your belt, you are definitely not a beginner. I know you want to accelerate your progress, but I do want to remind you that you are still doing just fine and are on the way to building a solid portfolio.
• -Tips to make this next purchase even stronger than the first two.
• If you can provide some insight as to the first, then we can develop a plan to make your money go further. 

Looking forward to your response, 

Berenger 

DaNeale, 

Congrats on getting into real estate! I have been an investor/agent/property manager in Atlanta for almost a decade now and will be happy to provide any resources you need. 

I hate to be the bearer of bad news, but multifamily investing in Atlanta is a difficult game as we have a general lack of affordable multi-family homes, most are sold at a 4-6% cap rate, and getting a return on your investment with these can take years. 

I do have a few strategies that I have implemented to still grow door-count quickly, utilize multi-family style investing with single family homes, and make sure you are mitigating risk as much as possible. 

It would be a please to talk and see where I can help.

Thanks, 

Berenger

Andrew, 

Thanks for the positive feedback. I have learned a good bit through my personal investments as well as managing these unique properties. It is my favorite mode of real estate investing as it offers a way to bring in more income, gives tenants the benefit of a good rental at a lower price, and provides the landlord with less risk as we are able to have them on GAR lease agreements. 

Please feel free to send me a message with your contact information and we can schedule a call at your convenience. I work as a full service agent for all investors and will explain my process via phone call. 

Thanks, 

Berenger 

Cade, 

From what I understand, you are looking to get your feet wet in REI, want something relatively low risk, and have some capital to put towards this.

You mention your market has new construction homes for about 300k, which indicates to me that you may be able to buy a multi family home (less than four units) for a pretty reasonable price, do you know the average price of a 2-4 unit in your area/the cap rate? That will really help decide where you are to go next. 

If we don’t have the info on multi family, here’s what I did at your age: 

Purchase a home with cosmetic rehab needed (kitchen remodel, bathrooms, floors, paint, fixtures) at a discount and get at least 25-45k below market even after the work is finished. Get with a local property manager and ask for their advice as far as contractors and handymen go, I would recommend not finding these off Google or most realtors. Property managers do a lot of rehab and good ones have already tested which contractors do good work for a fair price. Buy that house for 5-10% down (no need to use all your income) rent it out after a year. That is the most low risk way of starting off, and gives you the opportunity to mitigate your rental price with a mortgage and have a solid escape plan if you’d like to get out. 

If you want to get a bit deeper and make money while you live there/start the passive income- 

-Roommates in the other bedrooms

- I never liked roommates so, get a house with a basement preferably with a bed and bath room, add a kitchenette, now you have an in-law suite and when you move out can lease as a duplex/added some appreciation with the addition to the basement 

-travel for work? You can use a primary home loan and put your home on Airbnb for 6 months out of the year earning income while you’re out of town. This is a bit riskier and causes you to sacrifice some lifestyle decisions while having strangers stay in your home, but there are solutions to make it work. 

Point is as a first time home buyer tou should leverage an FHA loan for lower rates, you can also put 18-22% down to avoid PMI, and have a better intro mortgage wise in the future.

If you can get a multi family in your area with a cap rate of 6-7%+ I personally think that’d be the best way to go. Live in a unit and lease out the others. 

I do recommend finding something that needs a bit of forced appreciation, it’s a good way to build quick equity, not much, but better than nothing and gives you a cushion of safety in the event you want to sell if it isn’t your thing. 

Kedric, 

This is awesome! I always encourage investors to build good relationships with property managers. They are a great source for vetted contractors and repairmen because they go through the actions of finding who's good and who's bad so you don't have to. 

Congratulations on your accomplishments, hopefully you can start finding some more deals soon. It is a fantastic market to make some lowball offers on listed homes, and the investment off market sector is starting to a big uptick in production. 

-Berenger 

Investment Info:

Condo buy & hold investment.

Purchase price: $250,000
Cash invested: $18,000

Condo in Smyrna a short walk to Truist Park/Circle 75 business offices. Got it on great terms at 250k PP with a 315k ARV. PITI+HOA fee paid for by long term tenant. Just had to do a quick cosmetic flip, paint, kitchen, and bathrooms.

What made you interested in investing in this type of deal?

Short commute to a major hub for all sorts of professionals. Many sought after amenities nearby. Smyrna GA is rapidly growing with over $3B of added infrastructure to come within 2 miles of home within the next 3-5 years.

How did you find this deal and how did you negotiate it?

Met with lady who had for sale sign on condo that has sat on market for 120 days. Was willing to work out a fair deal.

How did you finance this deal?

Conventional loan

How did you add value to the deal?

Cosmetic rehab

What was the outcome?

Cashflows for two years with loan structure, after 2 years I plan to sell and reinvest more (if I cant refinance a lower rate, of course.)

Lessons learned? Challenges?

No challenges.

Did you work with any real estate professionals (agents, lenders, etc.) that you'd recommend to others?

I am an agent. Used Jan Wagner at Banksouth to lend on the deal