All Forum Posts by: Mike H.

i think it is not a bad investment. but i think west view/ adair park / pittsburg have already appreciated so much. one funny thing that i see on the pittsburg listings are "pittsburg yards retail restaurants etc". My friend tells me that's bs. likely no retail/food/bars will be in the yards. it's basically a bust. i mean there might be some co work / studios / office. but it likely won't be the retail area that these listing agents are selling.

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Atlanta, Georgia

where are you looking?

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Atlanta, Georgia

whatever you do, do not close with the tenant in possession. unless you want to be their LL

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It could be they are already in the market. Using 1031 they want to keep their gains on the market. VS you who are possibly brining new funds in to the market.

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Saw one "fix and flip" on site meeting. Pay 15/20$ at the door/online? What ? LOL

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Atlanta, Georgia

Hello Atlanta!

Considering buying a 3/2, 2/2, 2/1 type of older house and hiring an architect and GC to make it a 5/3 with a garage in east atlanta.

Has anyone done this and have any referrals? Share your experience?

Our plan would be to buy this house (if possible, move in) and hire an architect/gc etc. Get permits. Then move out for however long it takes to complete the work.

I understand that now might not be the best time to try this due to labor/material demand.

I understand the impacts of cash/financing. Like i can't buy a 3/2 on a conventional loan and then start tearing it down. We have the income/funds/assets to make this happen.

We're looking at doing this in East Lake/Kirkwood/Oakhurst/Winona Park area.

Thanks!

1 Vote

Atlanta, Georgia

Originally posted by @Josephine Wilson:

Newbie question here: I'm looking to buy a Class A triplex or quad within 10 minutes of my house and doing property management and maintenance myself. I live close to a large university. Of the 20 recently-sold small multis I've analyzed, nearly all have little to no cash flow and cap rates averaging 4.6%. (2048/2050 E 6th St, Tucson, AZ 85719 is one example.) Some even have substantial negative cash flow. Everything I'm reading says these cap rates are not favorable. So why are people buying these properties?

I'm thinking the buyers are A) hoping for appreciation and don't mind no cash flow, B) planning to increase NOI or hoping that market rents will rise, C) wealthy parents buying a place for Johnny/Susie to live for four years or D) house hacking. Can folks offer their insights into why buy properties with negative cash flow and low cap rates?

For anyone interested, here are my estimates for my example property: 2048/2050 E 6th St, 85719

Price: $245,500, two 1BR units, 1219 sq ft total

Rent: $1454

Maintenance: $205

P&I: $938

Taxes: $195

Cash flow: -$39

Cash on cash: -0.7%

Cap rate: 4.4%

What is the downpayment you are assuming for these investors getting negative cash flow? What if they put 30-40% down?

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Originally posted by @Rich Manietta:

@Nicky Reader I’m curious how landlords will get paid. I own 6 properties and while there are no mortgages on them that doesn’t mean I feel like funding other people’s lives.

Spoiler - you aint gettin paid. The eviction moratorium is paid by YOU. Easy bailout for govt. You will get nothing. There is no political collateral to be gained by bailing you out. Good luck... oh yeah remember the groups of people that think "cAnCEL rEnT" is a good idea...

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Originally posted by @Michael S.:

None of the above. . .the market here is crazy hot. Those starting prices are similar to Zillow's "make me move" price listing. They are shooting for above market value to see if someone is desperate enough to pay it with how tight inventory is here - if no takers after 1 to 2 weeks, they are then dropping their asking price to more realistic "fair market" values.

I agree with Michael. Price reductions I’ve been seeing is people listing with a stupid price. Looking in Atlanta right now and see a lot of price reduction. Most houses reducing have problems or listed way too high or I’m also seeing the 1m + listing not moving too quickly and seeing them reduce a bit

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Huntsville, Alabama

About a year ago there was a long post from someone saying they quit their job and were going to wholesale and was going to make it work no matter what it took. I wonder if they made it.

1 Vote

All Forum Posts by: Mike H.

Mike H. has started 20 posts and replied 126 times.

Post: Buying a home as an investment in Pittsburg Atlanta?

Post: How to find more deals?

Post: Seller not evicting tenant

Post: Why are people buying at these prices?

Post: Thinking about starting a Meetup in Atlanta: Interested?

Post: GC, Architect, Expediter recommendations in Atlanta

Post: Why are people buying at these prices?

Post: Trump/CDC Halts evictions nationwide to the end of the year

Post: Price Reductions: What does this mean?

Post: Wholesaling 101: How to Wholesale for Beginners