All Forum Posts by: Ethan Atkinson

There are some duplex “neighborhoods” in different areas and you need to ask your agent to have a longer conversation with your agent if you really want to find something. If you just started looking in the past 12 months, to be frank, you are late to the party. That doesnt mean there is no hope. When you speak again with your agent(s) ask them to help find where these pockets are that might be random duplexes, triplexes, quads or actual neighborhoods. Many are just outside the perimeter or close to it. Look at sold properties to find them and send mail to all their neighborhoods. Many owners don’t want to sell right now because times are good, but with persistence you can find that diamond in the rough. You definitely should call the ones listed for rent and ask if they want to sell. My opinion is go triplex or quad. Last idea, get in your car and start driving for dollars. Go find stuff with your eyeballs in the areas you like most by hunting in your car.

Hey - in an Athens investor, agent, flipper and think I know what listing you’re talking about. Did you get it accepted? Seems some of the deals are getting prices way to high.

@Charles Dobens, Looking forward to learning more about some syndication and raising money at your Atlanta event.  Myself and a colleague just signed up for the June event.  Any other Atlanta folks want to join us?

 @Azeez K.,  

@Dzmitry Zakharau, @Travis Oglesby, @Abhi Golhar, @Steven Viores, 

@Matthew S., @Tony DeMario, @Lem Egipto, @Melvin Music, @Brad E., @Jon Hill, @Bill Van Wie, @Sam Thurmond

@Derek Moore   Send it over.  

Don't worry about the California numbers. Or use them to figure very conservatively. I have learned that's the best way to go. Is this all in one building? You should be able to totally remodel for $50 per foot in Atlanta right now. Likely not including basement property should be around 9000 square feet. So that math says totally remodel and be like new construction for $450,000-$500,000, which is conservative also. If the neighborhood is on the rise then you should be able to get $700 easy for all the units. Using 50% expense ratio to stay conservative, proforma math says this value is $600k+ depending on the cap rate, with $50,000+ NOI. Finding the right contractor will be the tough part. Every single one worth hiring is busy busy.

To figure out a market you need to call some local brokers and network over the phone.  You would want to get on their list also if they have deals that they email out to investors.  Let them know your criteria, and ask them lots of questions about what they would buy. They will also have the best recommendations on local lenders.  There are plenty of US wide lenders you can talk to as well.  Rates are great right now, but also you and 90%+ investors are looking for a "deal" right now.  Counter-intuitive to what I just said, the deals are probably not going to come from a broker unless they bring you something off market.  It will also be real tough to get them to send you that info since you haven't purchased yet.  

-- The market we are in now, in most metro-US cities,  as @Keivan Darius suggests on his curve, is Construction OR EXCESSIVE construction.  This matters a whole lot more if you are buying the big stuff.  You can still buy a small older MF "deal" and make good cash flow.  But good cash flow is relative.  If you are planning on buying older or really anything that needs improvement, that makes the distance game even tougher.  This is where the local broker can really help you. Some have plenty of experience handling project management, which would require a fee or % of the deal.  For you to really push returns you need to push improvements, value added things like attractive remodeling, better curb appeal, and really important good management and maintenance.  

Personally, I am out there searching for self-storage and MF deals. Also looking for them in my own backyard of ATL.  Seems that a ton of folks are out there already buying deals in Atlanta for many reasons, like job growth, product that's only from the 70's-90's, but needs easy cosmetics, rapid rental rate incline that already happened, and just the plethora of gentrification or improvement of every neighborhood  you see whether inside or outside the perimeter of I-285. 

BP will also have some really great blog posts and forum Q&A's that will tell you the current market conditions.  Analyze deals all you want, but if you are not making offers, you won't get anywhere.  The first thing I learned was "Go see a lot of deals, and make a lot of offers." 

In my current search for deals I may come across something and would gladly add you to my list if you like.  Almost everything I am targeting is OFF market.  

What city/area or neighborhood are these properties?  Do they have an asking price already or looking for offers only?  Same owner for both?  Can you email me the NDNC?  [email protected]

What kind of partnership do you need for this property?  Someone local, or some financing?  

I think we can help each other. 

Welcome! We will be having another Athens REIA meeting soon. Check out our Facebook page and get on the mailing list. I’ll try and make sure there is a post on BP at least a week ahead. See you soon.