All Forum Posts by: Drew Steusloff

Chris, I believe this will work fine as long your RV is still on property. Owner occupied loan essentially means that you cannot rent an alternate residence or purchase another property to live in for the first year. I think would be a great option to maximize your income from the property.

Hi Michael,

Looks like this was a solid investment. Out of curiosity prior to selling what were you able to charge in terms of rent? Also Overall what has your experience with Buy and Hold in the Atlanta suburbs. I'm currently looking for my first deal in the Southwest Side of Atlanta, but am considering expanding my search to the Northwest Suburbs.

Hi @James G.,

I am based in the Atlanta and am looking at intown Single Family homes. The neighborhood I am looking at is more transitional and is centered near a few exciting major projects, A new park being built out of nearby quarry, a bike trail and transit network extension, and a couple of new breweries and restaurants. Many of the people locating here are trying to get in early on area that will certainly be very desirable in the future. Additionally you are less than 15 minutes away from the employment hubs in Midtown and Georgia Tech. From the information I have gathered appreciation in the last year alone has been 148%!! The window for obtaining cash flowing Rentals is quickly closing. However its seems that most of the people looking in this area are looking to purchase property and not necessarily rent. My hope is to take advantage of the slow down from COVID and pick properties that investors are backing out of at a price point that works.

Hi BP,

I am playing with the numbers on some potential deals and I'm struggling to come up with rental rates. I have primarily looked at listings on craigslist as well as rentals on sites like Zillow and Realtor. However, while this information has given me a range to hone in on, Its is too wide to make an informed decision as the swing can make or break a deal. Additionally, I'm not sure how to gauge vacancy in order to tell if the listings are to high or too low. To be extra cautious I am only assuming 80% occupancy in my calculations. 

Additionally, does anyone have thoughts on the reliability of Mashvisor for investors. I have been using this to run some quick figures on  properties, but had never heard of this until an agent referred me to it. So far it seems like a good tool but what is everyone else experience?

Thanks,

Hi @Jennifer D.

I have not looked into Washington Park or the adjacent Bankhead and English Avenue areas, largely due to concern of finding reliable renters and overall safety of the areas. You mention that you have received a lot of interest in your property, but how have the tenants been overall? Are they paying rent on time or have you had to go through any evictions?  I would definitely be interested in hearing more about the financials, as that seems biggest hurdle for me right now. 

Thanks,

@Brenden Mitchum

That's an excellent point about House Hacking and shared spaces. In this climate it is definitely a concern. You mentioned in your post that Refinancing is becoming more difficult, so far the lender I have discussed this with has had a fairly positive reaction. Are you thinking that this is just a trend due to the COVID outbreak, or is there other underlying issues?

Thanks for the feedback @Account Closed, 

I've read a few articles on Subject to and Wraps, interesting concept. I recall hearing about this a few times on the podcasts. A few questions about this, Subject to and Wraps seem to be a good option for a seller that is looking to collect a passive income stream and perhaps already has another place to live. However, the Areas in Atlanta I am looking to invest are West End, Westview, Grove Park, Mozley Park. Near the beltline extension and Bellwood Quarry development. To me it seems unlikely that the residents area would be willing to do a subject to without any cash in hand to relocate to a new primary residence. The scenario, I would see this working in is an absentee landlord or inherited situation. I guess the only way to know for sure is to begin the direct marketing campaign. Regarding the wrap, do you think a conventional lender would be open to something like this, or would I need to look into for private money / hard money. I am currently having conversations with a lender that will work with me on Home improvement loans giving me some options on improving distressed properties, but I will need to ask if they have ability to do wraps. Also in my reading the common concern that comes up is the due on sale clause that may be activated in wrap situation. Is there any key things to look for in order to avoid this? 

Hi BP community,

After spending significant time educating myself and saving for a down payment, I am ready to take action and move towards my first deal. I have been scouring Mashvisor and working with an agent to try and find properties that will cashflow. Primarily my search parameters are based on two strategies, House Hack, BRRRR, or the rare option that something can be rented immediately. My focus has been on single family homes in the Atlanta market. However, I have not seen anything that offers significant cash flow at my price point. I'm working with an all in budget of 300k and roughly a 10 percent down payment, but do have some room to increase if there is a deal that makes sense.

So far I have yet to see property listed that will meet the 1% rule and very few with a Cap Rate above 6%. I have widened my market to essentially the entire Metro Atlanta Area within the I-285 Perimeter, but this has done little improve my results. I have also looked into the suburbs, but have not seen anything that is significantly stronger of a deal. Additionally, I still feel that long term my current farm area will be a better investment, but I do not want to bank on appreciation. 

One thought I had was to perhaps put together a direct mail campaign to try and source deals, but my hesitation is that I am currently working with a conventional lender and do not have money on hand for cash deals which I feel are more typical in off market transactions. 

I would greatly appreciate anyone's thoughts or recommendations

-Drew

Hi Bryndon,

You are in good company, I am also to make my first purchase during the pandemic. I am hoping that we see some opportunities in the coming months as a result. I continue to hear that a surge of Airbnb properties will be hitting the market which may be a great a opportunity for you being near SoCal. Additionally areas that are more speculative will likely soften as investors who are holding the properties for flips or appreciation plays back out.

Hello BP members!

I recently joined the community to enhance my knowledge of real estate and begin networking with fellow investors. So far Bigger Pockets has been an amazing resource and the podcasts have made my commute a much more productive use of time. 

As for my background, I have a Bachelors degree in Urban Planning and I also have my Masters in Architecture. The experience in these two fields ultimately set on my path to be an aspiring Real Estate investor. I believe that good development and smart investing can not only be financially rewarding, but also leave a positive impact on the communities we are a part of.  

For the past five years I have been living in Atlanta, after relocating from the Chicago suburbs. Currently, I work for a project management firm that specializes in owners representation for Hotel Developers. The position has been an excellent complement to my educational experience, allowing me the opportunity to work on some of the most high profile Hotel projects in the US. In addition to the insight I have gained through my work, I have educated myself through various books and podcasts all while saving for my first deal.

 Ultimately, I would like to start by building a small portfolio Single family Rentals in the Metro Atlanta Area and eventually move onto larger multifamily properties. Atlanta continues to be a strong market for growth and appreciation. Primarily my focus has been the Southwest neighborhoods

This year, I would like to acquire my first rental property by summer. I'm either looking into potentially a house hack strategy or BRRRR for this first deal. Following this I would like to scale this concept by finding an additional property next year, and 2 by year three.

Looking forward to meet you all.

Drew