All Forum Posts by: Katlynn Teague

 Thank you Scott! 

The house right now is practically leaning over and there is serious foundation issues. It's actually pretty dangerous that is she living there. Due to the condition, the house would need at least $400k in work if everything goes as planned. My buyer is a GC and actually built the house two houses down from us. With his experience and access to materials, he said it was cheaper for him! 

Good morning Bp! 

I hope everyone had a great weekend! 

Has anyone in here ever rehabbed a house in a historic district? 

Here's the situation:

We recently picked up a property in historic Inman Park, Atlanta. This neighborhood is on FIRE, the average house sells within 13 days with a sales price between 1.1-1.6 million. 

Now here's where it goes south, this house is on the verge of tear-down. However, in Inman Park, there have only ever been two allowed tear-downs in the history of the neighborhood. I reached out to the city and zoning board and they were adamant that the house could be saved. They also mentioned that whoever bought the property could possibly go through a process to try to have the house torn down due to it being a safety concern for the public. That process could take anywhere from eight months to a whole year. The reason we were advocating for the tear-down route is because right now it is cheaper to build than rehab in our market. There is also another problem, the sweet lady who currently lives there has a reverse mortgage on the property. She wants to move to be closer to her family and needs the house to sell at a certain price to pay off the mortgage and purchase her next property with cash so she has no more payments on top of that it needs to happen quickly as she is not in the best shape. 

The whole situation has been extremely difficult to navigate, we have worked with houses in other historic districts before but none of them have been as strict as Inman Park. Does anyone have any advice on how to work with the cards that were given? Have you ever dealt with a historic committee like this before? What would be your route?

Jonah, welcome to BP! 

Would love to connect, there is a meet-up tomorrow night in Marietta! 

Answer:

Try the last three months of the year or the first two months of the new year! 

Reason 1. Motivated Sellers - With the Holidays, the new year coming, and a new school year approaching sellers are eager to wrap up deals! 

Reason 2. Tax Perks - You absolutely need to consult your accountant but YES it is a thing! 

Reason 3. Less Competition - Better Odds of Snagging the home you are looking for without breaking the budget! 

Dock,

You have had a good bit of information shared here by many different players in our Atlanta market. 

@Michael Dumler and @Josh Bowser have really given the best insight here. 

However, there is one thing I want to add, depending on your strategy it will completely change which area is best suited. A lot of investors in Atlanta search for the 1% rule and it is difficult to get that inside the actual city of Atlanta due to the city tax. However, for flips the neighborhoods of SW Atlanta are growing and changing tremendously. One could even say the picture book definition of gentrification. Cobb County is being bought and sold left and right these days. It is hard to get a deal there so when you find one you have to move fast! At the end of the day, Atlanta is a giant melting pot with many different neighborhoods. The best advice would be to take a trip down here and drive to your most favorable neighborhoods! 

Good Afternoon Bp, 

Has anyone ever done an out-of-state flip? What was your experience? How did you meet good crews? Was it a good experience? Have you done it again?

I am currently working in Atlanta and my buyer is in Miami. He loves to buy here but we have had a hard time with reliable crews and being able to secure a deal fast enough. Also, he only likes big projects, When I say that I mean pop-tops, addition plays, and what most consider to be tear-downs in the more desirable parts of town. If he wants to move on something he will 9 out of 10 times fly up but sometimes we miss our deadline and the deal flops. 

With his preference for deals and timelines, we have to secure them, it is important to have a good team behind you. I have reached out to a couple of my GC contacts to see if they would be a good fit for him. Which is still in the works as of now. 

Does anyone have any advice that would help?

Investment Info:

Single-family residence wholesale investment.

Sale price: $190,000

We picked up a super cosmetic 2000s build, 1,200 sqft, 3/2 at 9:30 am. Got right to calling and it was a perfect fit for my buyer. He was actually going out of town but was able to get his contractor out there ASAP. Originally we budgeted $50k for the reno but his contractor said he could get it done cheaper... WIN! Needless to say, my buyer was ready to lock it up right away! Got back to the office and got it sold by 2:00 pm!

Sales Price $190k
Rehab $50k
ARV $300k

Hey William, it stinks you have to deal with this. A good bit of my investors have had some. similar situations happen. @Bob S. is absolutely right it is all about your team. Another note do not leave anything in the house and make sure your team does not leave their trucks unlocked even when going in and out of the house. We have had situations here in Atlanta where people would steal stuff out of their trucks. As soon as you get wired add a simply safe security system on the house. You can also keep the windows boarded up until you are getting close to listing. Maybe even shoot the local PD a call and let them know you are renovating the house and ask if their night shift patrol and drive by every night until you are able to secure it! 
I wish you the best of luck, I hope some of this helps! 

Welcome to BP! I am local in Atlanta and would love to network! Check out Real Estate Connections, it is a local meetup every 2 weeks! Great place to meet over agents and possible connections! 

"Wholetailing" is not going away I don't see. A lot of investors who are looking for smaller "renovations",  "wholetailing" is the gateway for them. Basically, if you are not familiar with it, an investor finds a deal that needs the lightest bit of cosmetic work. The investor then goes and purchases the property does the work and the lists. Wholetailing is for deals with not a lot of spread, where its just makes sense to buy and do the work yourself. Literally as simple as changing carpet to LVP, new paint, and maybe just maybe updating bathrooms depending on the deal. 

These deals are not junk on the MLS, these are more for first-time homebuyer houses. I do not see this trend going away at all. Where I am at in Atlanta, I have seen alot of wholetails going on and these investors have been making money off of them!