All Forum Posts by: Rick Baggenstoss

@Sean Chua. I think you might end up doing, and doing better with, two refis. You can refi now with a DSCR lender immediately after reno. You might be able to get a lot of your cash out based upon market rents (vs. rent by room actuals).

As you get all the rooms rented, interest rates stabilize, go at it again in 3 - 5 years with a full doc loan.   At this point, you're more likely to be able to refi with cash coming out.  Not much sooner. 

OR, if you can get the rehab done quickly, then do a full-doc with a 7 yr ARM and maybe your rate will float down as things improve and you can avoid a second refi.

Might draw more people in if we knew what you were doing or debating about this property.  

An ADU is a new build. Therefore, this is the kind of GC you're looking for. The prices will be high because it's almost as much effort for the GC to do a new 800 sf house as it is to do a 2000 sf house -- same number of subs, inspections, materials orders, and timeline.

I think you can cut your costs down significantly if you take some of the steps on your own starting with getting permits.  

Westside including Austell, Mabelton, and Douglasville should also be on your list.

@Matt Buck Do you meant a REIA that meets virtually and in-person? Would you want them to have active email groups addressing local issues, contractor referrals, local lead sharing? What else?

@Matt Buckundefined

$250/sf ballpark.

Devil is in the details.  How about a single family home with 8BR/8BAs with huge kitchen/den rented by the room for $1000/mo?  What about 8 - 1BR/1BA, 4 stories?  ... Varies wildly.  Kitchens and baths are very expensive.  Taller than 3 stories is very expensive.  Land can be very expensive.  Creativity is ... priceless.

There's really no benefit from the transfer at this point.  Anyone could figure out who you are in a few minutes.  Make sure you're properly insured and keep going.  There may be another opportunity down the road when/if you refi.

I'd wait.  Your timing will be much better when you graduate and you both have jobs.  Focus on school and your relationship while you learn about real estate in your spare time.  

When you have a job/law degree, you'll be in a much better position to buy, get good rates, be close to the job, etc.

Steve Harlan at Harland and Associates.  He's in Sandy Springs.

I started in my own house - renting out portions to friends.  I'd start there.  After that, I might turn my primary residence into a rental and buy another to house hack.  

After that, I'd look at other markets for cash flow AND appreciation. To me, any healthy sunbelt city (secondary market) is a good candidate.  Healthy meaning it has good job growth, pop growth, and a diversified economy.