All Forum Posts by: Ethan Rafferty

Wondering if anyone else had this issue. In the Atlanta/Metro Atlanta area. I'm in the market for flips, but it seems like every wholesale list/wholesaler I meet sending me deals is incredibly sketchy. The deals they present look great on the surface, but fall apart once there's any diligence done. Whether it's a super inflated ARV or way underestimating rehab costs. I'm probably on 3 or 4 lists and haven't seen one good deal. Is this the norm or is there a better place out there to find a legit wholesaler?

 I figured. I have already spoken with the county and they were very tight lipped about the likelihood of success. Which makes me think it's a bit of a pipe dream.

So I have the opportunity to buy a property in a great city I know well. It is a 1 Acre lot, with 2 homes on the lot. One home is a 2 bed 1 bath, and the other is a 4 bed 2 bath. They both need work, the larger home much more than the the smaller. But with what the property is listed for, the deal doesn't work unless I am able to split the lot into two parcels. It is zoned R40 - So I would need to rezone the property to be able to split the land. Has anyone gone through the process of rezoning, and if so, what are the chances I will successfully be able to get the property rezoned. It would be a great addition to the portfolio if possible, but I don't want to purchase if it's not a strong possibility.

Investment Info:

Single-family residence buy & hold investment.

Purchase price: $290,000
Cash invested: $75,000

Bought a single family to live in and rent out the other three rooms to cover the mortgage. I paid slightly more than I should have and the renovation was more extensive then initially expected. However, the ARV is over what's been invested, so still managed to get a good bit of equity.

How did you find this deal and how did you negotiate it?

I found the deal on Zillow, and went about it with a traditional 3% conventional loan because it is my primary residence

How did you finance this deal?

3% conventional down for the house, and a private loan for the renovation.

How did you add value to the deal?

I own a contracting company, so I was able to complete the renovation for about $45,000 cheaper than if I had to hire out everything

Lessons learned? Challenges?

I definitely spent too much on it, and didn't pursue enough due diligence on the front end.