All Forum Posts by: Ericka G.

@Brandon Brown  thanks for that reco - I'm going to check out that podcast

@David Song good points - will run numbers taking closing/marketing costs into consideration, hadn't really factored that in

Overall, I'm not seeing any smoking deals in Atlanta so I'm thinking to perhaps hold until we find something 1031 worthy - otherwise the tax hit makes selling costly. Also will take way the staggered sales idea rather than assuming I have to dump everything all at once. I think this soft month and the coming winter (snow on older roofs = no bueno) got me a little jumpy

@David Krulac wow, such a wealth of knowledge! Yes, good reminder that old houses are built to last.  We live in a 1950s property that still has the original HVAC unit and it still works!  These rentals are 1960s houses so perhaps the roof has more life than I'm giving it credit for.  Also appreciate your points on things to consider when deciding what to sell/keep.  Using your criteria, the only negatives with these properties is the distance away from me.  Hmmm...they are looking better to me now

This is all very helpful and has given me a lot to think about.

@David S. and @Dustin Beam thanks for clarifying the formula - started to run those numbers but they don't look great when you own a property outright

@Michael Noto yeah, we bought at a good time - found a gem of a neighborhood right before the values started to rebound 

Congrats!!!

Dean H. Wow. That's great advice...there is definitely something to be said for "the devil you know" and also a good point that trading up could just mean trading one set of problems for another.

Mike Dymski great points - I will run a couple of scenarios and see where things land. You're right that we had the perfect market entry conditions, but amazing bargains + rental shortages can't last forever. Initially the rough plan was to sell when the properties doubled in value, especially if we could get to that point before any major capital expenditures. using that rule of thumb we can sell 2 in the spring (both have doubled or nearly doubled and are also the 2 with the most capital expenses coming up) and roll that into something in ATL and hold onto the other 2 a while longer. Eureka! This is why I love this site - all the various advice has just helped me figure out a viable next step. Thanks all!

Josh Calcanis we definitely provide value and are considered the best but these new guys are charging 30% less for a similar offering and our niche, tho class A with solid income - is price sensitive because this is a second home while they commute/are on call for work...I may try to mystery shop some the competition and get more info on what they are offering

Dustin Beam good idea - not familiar with that calculation but will google it. If you don't mind sharing the formula that you use that would be great. We own 3 of the 4 outright and one is leveraged with a VA loan - not sure if that impacts the recommendation

Jd Martin that's reassuring to hear. I wasn't previously scared of roofs but several months ago went to a REIA event in Atlanta where a very well established flipper opened up her latest rehab, a small bungalow, and when she said the roof on that tiny place cost $8k I was floored. It is good to hear there is a range. These are small houses so hopefully the roofs will be on the lower end of the scale. We'll see

Matt K. I think most of our recent competitors are novices like we were 2.5 years ago who stumbled upon this opportunity, not sure any of them will be ready to buy 4 at once BUT we might be able to sell off individually if we can get the word out to the right niche of folk - perhaps via a trade magazine or website. Great idea if we decide to sell!