All Forum Posts by: Rick Baggenstoss

Congratulations!  Great start.

You can find hard money lenders by googling or online.  Vet them a bit so you know someone who closed on time, has a reasonable draw process, and finished up/closed out the loan fine.  Some lenders are less expensive but difficult to work with -- costing you more money than you saved!

Private lenders linger at REIA meetings or you might find some friends and family willing to go at-risk with you.

Search for GC license course Georgia.  You can take it online or sit in a classroom.  You don't need it to fix and flip, but it will be handy and very valuable.  

In Georgia, tenants cannot withhold rent for repairs.  However, it sounds like the house was unlivable.  If they continued to live there, then you deserve rent and will have to go through eviction process (or most of the way) to collect or get a judgement. 

You certainly don't owe them anything for their clothes.  However, you may spend more proving your point than paying them something.  Do your best to work it out.  Otherwise, you'll get your rent many months from now and lose another $500 in court fees and attorney's fees.

By the way, NEVER put carpet in the basement.  Basements always leak in Georgia.  

Ten is a great goal until you're almost there.  It's addictive.  :-) 

I kinda like STRs but they're a niche, so you might want to think in terms of several STRs or none.  Hard road to learn a niche then don't scale it a bit.  Repeat as much as possible including an area of town, an investment strategy, year/make of house, finish level, and all that relates to your target tenant.

Good luck! 

First, why is someone living in Tampa buying in Virginia?  You live in one of the best markets in the country.  No need to buy far from your house.

I'd find the source of water.  Start with wrapping the duct that's condensing.  Probably not a big deal. Certainly not worth encapsulating and adding dehumidifiers. 

Happy we could connect via phone.  I know you'll do well with your investment.  Get that rent check coming in for the upstairs before you tackle the basement.  I'm happy to stop by and share thoughts on your basement when you're ready.  

BRRR has been around since the 80's. Since it's not new, it's not something with 'thought leadership'. However, BP did an awesome job putting a name to it. The most important aspect is to evaluate a project with the entire strategy / process in mind vs. optimizing a single step.

Buying a house which you can't renovate and add value might not work when you refi, for example.  Buying a house where rents aren't responsive to upgrades.  Trying to refi when rates are rising quickly ... tricky! 

I know many investors who fail to REPEAT.  They take a break after one or two.  Pacing yourself and knocking down a project every year/quarter/ or whatever is the best practice.  You'll be at that goal soon.  

GaREIA meets about 10x per month. It's not all about BRRR, but there are lots of us who do it as one of our primary strategies.

Hi Larry - I love this type of investment ... single family price but income like a triplex. 

First, to get the duplex operating legally.  Confirm with City Zoning, they agree it's a duplex -  two meters operating nearly continuously in the last year.   You may have to get proof it was working from Georgia Power, if it's not already known. 

Atlanta doesn't allow permitted basement ADUs today.  They were once and they've tried recently, but it's not permittable today.  You should understand what makes it a "dwelling unit" is an independently operating kitchen, specifically a stove.   Legally, you can build out the basement with a bedroom, bathroom, living room, kitchen sink, kitchen counters, microwave, and kitchen cabinets -- just no stove.  Don't even have a plug for a stove and don't label the room "kitchen".   It's a "wet bar". 

This type of area is legally called a 'guest suite' vs. ADU.

Good luck to you!  I'm sure it will do great once you get it running.

Rick

Read the law related to Atlanta watershed.  You need to share it with them to get it removed.

http://atlanta.elaws.us/code/c...

(c) A public or private water supplier shall not impose a lien against real property to secure unpaid charges for water furnished unless the owner of such real property is the person who incurred the charges.

@Elvin O'Neal II. Do you plan to force appreciation through some rehab or buy rent ready?  if you're buying close to rent ready, you better have longterm financing ready to go when you buy.  If you're rehabbing, then wait to contact for refi until late in the rehab process.  

Ask for refi lenders at that point.  They seem to come and go fairly quickly as they run out of money, get overwhelmed, etc.