All Forum Posts by: Joseph Vaughn

There a many ways to monetize a timber stand. You can put it in a conservation easement, a carbon offset project, rake pine straw, thin & clear cut the trees. There are a lot of government subsidized programs to help offset the operational cost of managing timber. Let’s connect! I’ve worked in the US South and your timber is in my wood basket. 

Here’s to finding multifamily investing! 

There are still find deals on Zillow and Redfin. It looks like the most important thing is creating a funnel of leads. On top of using those sites I got connected with some real estate agents using BP’s agent finder.

What are you hearing that might hinder converting a unit to a STR?

I’m working with a partner so I haven’t checked directly, but it looks like you can expect a 20-30% DP. You’ll want to have access to closing, rehab, and reserves. That’s different for everyone.

I'm not sure about ADU's. That might be a good questions for a real estate agent or investor with experience with those.

Quote from @James Gregg:

Hey everyone! My name is Trey Gregg. I am looking to connect with any land/ timberland investors in the Richmond area. I am looking to join any groups, learn, and connect with people with the same investment interests! 

Hey! I’ve worked in the forest products industry for the last 5 years buying land & timber from private industrial landowners and family landowners. I now work in the forest carbon market & natural capital space while investing in small multifamily. I can connect you with some of my contacts that work in consulting and academic forestry. Send me a DM if you’d like me to connect you with them!

Quote from @Adam Lendi:

Who knows a thing or two about creating and selling carbon credits? I heard a fascinating podcast on the topic and would love to meet someone who is working in this space. I have a lot of questions about how this is done and potentially a massive market. Thanks!

 Hey! I’m Joe and I’m responsible for helping landowners enroll their timberland portfolio into a 12 month carbon project. They are able to defer harvesting the land for payments. Let’s connect, send me a DM if you are still interested.

Quote from @Todd Chandler:

My wife Jenny and I are negotiating a deal in Athens, GA to acquire our second STR door. We will need a reliable cleaner and handyman in the Athens area. Does anyone have recommendations for me? We have a handyman where we live about an hour away but would prefer an option in Athens and definitely need a cleaner local to Athens. Thanks!

While living in Athens I have used Two Maids and a Mop. 

@Chris Seveney @Jordan Wright @Drew Sygit it seems like this property should not have gotten through my "filter" based on the comments and questions. That has been very valuable! I went and got another book today, "Commercial Real Estate Investing for Dummies", and the light bulb went off when reading it and thinking about your advice. 

First, I determined cap rate for this type of property in the market - 4.46%

Second, I determined NOI - $7,924.22 based on 6.20% vacancy rate and 60% expenses

The property value based on those variables is $177,792.78 - NOI divided by CAP RATE

Next, I calculated pro forma numbers using market rent numbers and got a NOI of $9,455.04 based on 6.20% vacancy rate and 60% expenses. The property value based on those variables is $212,139.11 so based on that I don't think this Seller would be classified motivated assuming my numbers are right.

Property Address: 120 Loblolly Dr, Athens, GA 30601
Asking Price: 245000
Vacancy %: 6.20%
Expenses: 60%
Cap Rate: 4.46%

Total Monthly Income $1,760.00
Total Annual Income $21,120.00
Vacancy Rate * Annual Income $1,309.44
Effective Gross Income $19,810.56

Net Operating Income $7,924.22
Actual Property Value $177,792.78


Total Monthly Income $2,100.00
Total Annual Income $25,200.00
Vacancy Rate * Annual Income $1,562.40
Effective Gross Income $23,637.60

Proforma Net Operating Income $9,455.04
Proforma Value $212,139.11

Unit Type # Unit Monthly Rent ProForma Total
Studio $-
1 Bed $-
2 Bed 2 $880.00 $1,100.00 $1,760.00
3 Bed $-
4 Bed $-
Other $-

@Dakota James are you against getting information on the locale from a buyers agent? It looks like you are a broker and I’m based in McDonough, GA and have family in Savannah, GA & Lady’s Island, SC. I can help get some information from a real estate agent I have networked with.

@Jordan Wright it doesn't pass the easiest calculator and yet an investor will pick this property up because of its location. What would you do to get this property locked up?

Here are some more details:

- Renovated in 2021

- Electrical, plumbing, roof, HVAC, and HWT updated within last 10 years

- 1 unit is occupied and 1 unit is vacant

- 1 unit is occupied for $800 per month (market rent for this type unit is $950-1150)

Feel free to ask any clarifying questions. I'm hoping you take the time to answer this because I think it would be valuable for me to see/learn how others assess value and create an offer. Thanks!

@Chris Seveney this is a duplex, each unit is 2 beds / 1 bath. Let me provide a little background and then explain why those monthly expenses are so low. I'm reading "How to Negotiate Successfully in Real Estate" and following its recommendation of locking up a property to do my homework for two reasons - (1) Be another potential buyer to the property and (2) gain access to the actual revenue and expense (pro forma) documents. This post is me proofing my concept and hoping to get feedback like yours. Getting the correct list of expenses can be really difficult so I went with the recommendations from the book hence why they are screaming low. What dollar amounts or percentage ranges are investors using when doing this quick screen process to see if this deal warrants further analysis? 

Hey BP family!

I'm running my initial analysis on an investment opportunity in Athens. I want to put in an offer to tie the property up so I can do my homework (approve sellers books, records, leases, property management contracts, preliminary title report, underlying encumbrances, and physical inspection of the property. The property is being sold by a fix n flipper for $245,000 and it has sat on the market for 36 days so far. The flipper took a Class C property in a Class B neighborhood and upgraded it to a Class B property. 

The value add potential 

- increase rents strategically since they are currently under market value

- create additional revenue streams like an affiliate program partnered with a local business that will offer my tenants a service and I'd receive a referral amount

- continue to analyze the revenues and expenses to improve NOI (i.e. hire professional property manager)

This is not a home run deal, but the goal here is to get started and get my feet wet in investing. 

View report

*This link comes directly from our calculators, based on information input by the member who posted.