All Forum Posts by: Matthew Nicklin

@Jay Ragland Very impressive! I am surprised permitting and all of that was able to get done that quick. Here is to a happy and productive 2020. 

Sent you a PM for more info. 

There is not a standard boiler plate lease in GA. Every lease is different and I would recommend having a lease that protects your rights as a property owner. Also you may want to consult with a property manager or attorney to ensure your lease is comprehensive. You may also want to review the Georgia Landlord Tenant Handbook provided by the state to ensure your lease does not violate any laws and you are managing the property properly. 

I am an investor and property manager. My rent is due on the 1st, not the first Friday, not the first time they think about it, the 1st of every month. A late fee is assessed on the 2nd of the month and a 3 day notice is posted. My late fee is 10% of the rent amount. You want to ensure your late fee is not too small otherwise tenants will prioritize paying other bills on time over your rent. 

Pet deposits are variable. On my personal rentals I charge a $400 refundable pet deposit. I like to do refundable pet deposits to give the tenant incentive to take care of the property and ensure it is cleaned up upon move out so they get the deposit back. I have heard of others charging a pet fee that is non-refundable. 

Without a doubt in my mind house hack! Not to downplay your knowledge but you probably do not have enough knowledge to flip productively at this time. A house hack is a gimme if you do not currently own a home. I have helped many friends and clients purchase a property and they have successfully house hacked. I even have a friend who I helped with a house hack then he wanted to move so he bought a 2nd one then rented out the master of his old house, so he has 2 properties he has house hacked. 

With low down payment options available the house hack is the clear winner. What I would recommend doing is saving money then buying a property with as much down as you are comfortable(Up to 20% to save on PMI) with, Owner occupant loans start at 3% unless you are a veteran than you can get a VA loan with 0% down. Once you have the house then rent out the rooms for income, use that for your mortgage payment then any extra cashflow or income you have save for another property. Once you get enough equity you can even get a HELOC if you wish. I fund a lot of deals with my HELOC, it a cost effective way to fund flips and rentals once you get more experience.

I am a investor and a Broker in North Atlanta. Feel free to reach out to me anytime. 

That is a tough spot. I am not a an attorney, so consult one if you wish this is just my advise. My first thought is you should have extended your due diligence period if you didn't have all the information you needed to make a decision by the end of your due diligence time period. You could have also put in a special stipulation stating your offer was subject to no rental restrictions or more importantly no short term rental restrictions. I have seen a few condos that do not have "rental restrictions" but if you read their declarations it says no restrictions on leases that are more than 30 days, meaning they have a restriction and a right to enforce and prevent short term rentals(AirBnB). This is why I stress to my clients that are interested in townhomes/condos that they need to review all HOA information within the due diligence time period. This includes declarations, covenants, bi-laws, and most importantly financials.

As it sounds like this was not done durning your offer process and you actually terminated after your due diligence period the seller is probably entitled to some liquidated damages. So I would see if they would be willing to give you some money back but in the end you may have to chalk the whole thing up to a learning experience. Tuition to the school of hard knocks is expense, you didn't know now you know. $2,535 is an expensive lesson but maybe it will save you from making the same mistake on a bigger deal. 

@Joel Owens I couldn't have said it better myself. I own and manage property all over Atlanta. I try to only buy in better areas and advise my investors to do the same. Fulton county evictions take longer than Cobb and other counties without a doubt. 

We do not manage property in that area but I may know a few that do. They will charge a management fee in addition to management fees for overseeing repairs etc. You can PM me and Ill send you there info, you can reach out to them and get specifics.  

I agree with @Cassi Justiz and @Martin Vehlow comments. Is the property tenant occupied? Could that be a hurdle with setting up showings? If the property is vacant does the listing indicate it is on Supra and an agent can show without scheduling?

@Josh F. My Brokerage manages the properties I own, so I do have some cost savings there. My average rents are around $1,385. Average house value around $200K.

I also own some rental condos, but I am not factoring those in to this. They cashflow about $185 a door a month for the ones with mortgages after expenses.

Cost control is a huge factor for me! If I can keep expenses down it is going to help my overall cashflow(This means doing rehabs right to minimize repairs and getting repairs done at a reasonable rate). The 2 biggest pieces for me are buying right and cost control.  

@Josh F. So your saying your making 4.1% cash-on-cash return? That seems low and like a lot of work for that kind of return.

I have mortgages on my SFH. After mortgage expense, taxes, repair expense, and vacancy I am clearing around $285 a door a month. So $3,420 a door a year and that does not include principal pay down. I also BRRRR these properties so cash-on-cash isn't really applicable to mine as I pulled cash out beyond what I had in it.

It's funny you mention Neil as he is one of the people that sent this specific deal that sparked this post. It was odd to me to see him send the same deal that I received earlier in the week from someone else. As everyone has mentioned here there maybe different allocations to a few capital raisers. Which explains why one is saying they are full while Neil is just starting to put the deal out there.