All Forum Posts by: Lateefah Mathews

@Mei Zhu Hey, so if the majority of the comparable units are renting with a washer and dryer, tenants will more than likely expect this to be the case for your unit. Not including one could push you into the non-commital zone when renters are making a decision, or force you to lower your rents to stay competitive. You can always purchase a mid-range unit and note in the lease that tenants are responsible for misuse/damage. 

@Nandia Hightower Hey, if you're a wholesaler, Kats Durell LLC handles a lot of assigned contracts, double closing etc.

@Michael Gonzales Welcome to BP and sorry to hear about this situation. Honestly, you are under no obligation to extend this contract any further. The buyer is already in breach, and you are not required to keep granting more time.

Also, your EMD should've been negotiated stronger up front, but at this point it should at least be non-refundable if they're dragging. In Georgia, we have a seven-day unilateral extension. I'm not sure about Ohio, but most state contracts are designed to limit extensions for a reason.

In truth, this is highly concerning and a red flag for sure. The conditional approval is still not cleared after almost two months, a small EMD, and to top it off, withholding material facts. That combination almost always means the buyer cannot perform. They've shown you on every front that they don't have their ducks in a row.

The reality is that after 55 days off-market, that’s pure opportunity cost. One extension is already above and beyond, but every additional day risks missing out on qualified buyers. Every week brings new eyes to your listing, so tying it up longer is a disservice to yourself.

If it were my client, I would move on. I would not advise my sellers to sit idle under expired, weak terms when they could be back on market securing a buyer who’s truly ready to close.

@Cabir Covington Welcome to BP BTW! If you're looking at cap rate as your deal decision tool, keep in mind that cap rates are really published as benchmarks, not deal metrics, especially in commercial. They're good for gauging how capital is pricing different asset classes and whether demand is pushing returns up or down. But once you're running numbers on a specific property, those published averages are like background noise, what really matters is NOI, lease rollover risk, and your exit assumptions.And this is assuming you're looking at multifamily, since cap rates get talked about a lot there. Those averages are helpful for context, but at the deal level, the other components I mentioned are what really drive the outcome.

@Devon MorrisCongrats, you actually did what most investors struggle with, which is narrowing down your strategy. That's your first step right there, which is what a lot of people have a problem getting clear on. 

Now, if I understand you correctly, you are looking to house hack and rent long term to whomever you're living with. And if that's the case, your second step is to figure out how much cash to close you have to work with. This is what's going to dictate what you actually can afford.

It's also going to bring you to step three, which is what type of loan you're going to qualify for. And I'm just going to assume that you're not paying all cash for your house hack. So, your loan product is going to be based on how much cash you're working with ( as well as scores, DTI etc.).

Those are really your first three steps right there. After that, it starts to branch out depending on your numbers.

@Allison Park That's excellent news! I'm so glad it worked out, that's exactly the kind of tenants you want and need. Best of luck with your future properties! 

Hey @Sebastian Robles welcome to REI in Atlanta! I'd love to connect with you and see if we'd be a good fit to work together. I'll DM you my info so we can chat further :)

Hey @Steven Rodriguez Welcome back to the ATL via investing! Off the top, I'll list three of the "strongest markets" right now near and around ATL that cover all three of your requests. Obviously, I don't know exactly what lane you're carving into yet, which could help narrow down "best places". For instance, are you looking at small MFs or commercial MFs? And what's your strategy, is it LTR, MTR, STR, or a mix? The three spots I named below should cover all 3 strategies...

1. Savannah Metro: Because of Hyundai's EV plant and supplier network, Chatham & Bryan County is ranked among the fastest-growing counties in the U.S (FYI). Savannah is great for all 3 strategies LTR for steady workforce housing, MTR for contractors, and STR because of the location appeal it has, stuff going on year-round.

2. Athens: Because Athena Studios is fueling film production out here, plus you've got the University of Georgia and a strong healthcare base. Athens is better for MTR and LTR and STR can work in certain pockets depending on regulations.

3. DeKalb / East Atlanta (Stone Mountain, Tucker, Doraville): Because Electric Owl Studios and Assembly Atlanta are running, and the Georgia Film Academy just expanded there. MTR and LTR are better for this pocket.

If you want to dive deeper and really match these markets to your strategy, feel free to DM anytime.

@Hermia Bernard I'm glad you found it helpful. You're definitely in the best place here on BP to find REI groups and connect with other investors. I could be wrong, but I don't think Georgia REIA has a specific subgroup in Coweta or Fayette. That said, Facebook is a great place to check for investor meetups and networking events in those counties. All the best!

Hey @Allison Park these are great questions, and I'm glad you parked them here first. 

Number one: You should just lower the credit score a bit. It’s ideal to see credit scores starting at 625 for rentals. That’s not something unreasonable. It's a safe baseline that also gives a starting point, but it doesn’t give an endpoint.

Number two: Should you even consider the low 500s? NO. If you set your standards at 625, you keep your standards at 625 no matter what. The only other contingency would be asking for a cosigner at 600. That would be the bottom line, but I wouldn’t advertise the bottom line. If you get a tenant that meets all of the requirements, then you can actually say, I can safely bend the rules for a 600 credit score. Also, checking landlord references should absolutely already be a part of your profiling process, as well as checking the employment status and making sure that their paychecks and any proof of employment line up.

Number three: Should you go ahead and list those two townhomes now? Yes. You absolutely can go ahead and pre-list your townhomes and make sure to 100% advertise that they will be ready for move-in and give a date. You can even give a timeframe, like October 25th through the 31st, applications are being accepted etc.

Lastly: As far as you leasing to low score high-risk tenants right now...don’t fall for the low hanging fruit. Wait it out. If you wait it out, you wait for the right person, then the right person will be renting your brand-new townhome and not the wrong person. It’s harder to get someone out of there than it is to get someone in there. A vacancy is cheaper than a bad tenant