All Forum Posts by: Nicholas LaGatta

Hi all,

I bought a 1925 duplex on Metropolitan next to "the green store."  It's in the Adair Park Historic District.  After a car crashed into the front of it, I decided to try to lump all exterior changes I might want into one permit, while the insurance company is paying for permits to be pulled anyways.  I called the Urban Design Commission and talked to Matt to try to get a general idea of what to expect.  

I'm writing the email below to try to get some clarity, but I'm not sure how pedantic they might be.  I'm also worried it may be a slippery slope that changes some simple repairs and upgrades to a train of highly paid engineers, architects, and inspectors crawling all over the property, which I don't have the time or budget for.  

I moonlight in real estate investing, so I really don't have to time to deal with a lot of business-hours tasks.  Whatever projects seem like they are going to be a massive hassle, will probably just get sidelined entirely until I have the time to deal with it.  

Is the email below a huge mistake?  Has anyone else navigated similar processes and could help me understand what to expect?  Thanks in advance!

_____________________

mdadamsatatlantaga.gov; patsullivanatatlantaga.gov; sucolemanatatlantaga.gov

Hi Matt, Pat, and Susan,

I live in Adair Park and bought 881 Metropolitan Pkwy as a side project. I'm enthusiastic about historic properties as the son of an architect and having owned a 1918 condo in a Leila Ross Wilburn building at Piedmont & 3rd Condos (where I was HOA president), as well as a bungalow in Adair Park and one in Pittsburgh.

As I discussed with Matt, I'm in the planning stages for 881 Metropolitan and I want to get input from you all at this early stage for determining budgeting and feasibility. I plan to keep the property as a duplex and I am hoping to bring back the original tenant who lived in one side for 48 years, once repairs are complete.

The following is a high-level overview of exterior work I am considering:

1. Car crash damage - 2 weeks ago a car crashed into the front of the duplex damaging the column, masonry, and railings. I am working with my insurance adjuster and a contractor to restore this to as close to original as possible, reusing original bricks.
2. Roof replacement - the structure urgently needs a roof replacement and my roofing contractor (Craftsman Contractors) will start the permitting process any day now. The replacement is a charcoal black architectural shingle, with no changes to the structure. The roofer will include a like-replacement of the rotten fascia board on the front facade as part of the scope.
3. Gable resurfacing - the gable currently features tar paper, amateur trim work, and an ineffective plastic gable vent with no architectural significance. I would like to clad the gable area in cedar shake shingles and replace the vent with a wooden window matching the style of the original windows (venting will be replaced with ridge and soffit vents by roofer), to match the style of like structures in the district. The original corbels would not be impacted.
4. Front porch enclosure - this area has heavy urban street activity and I have had multiple instances of theft from the front porch in the short amount of time I've owned it. I'd like to frame and screen in the porch, while not obscuring the columns or masonry and include a double screen door for access, similar to this: https://www.homedepot.com/p/36-in-x-80-in-Wood-Cla...
5. Fence - I'm considering a low picket fence immediately in front of the structure to the sidewalk for security and to allow for landscaping. Example: https://www.homedepot.com/p/3-5-ft-H-x-8-ft-W-Pres...
6. Side entrances - I am considering replacing the dilapidated concrete side entrance steps and landing with a conservatively styled wooden staircase and a small wooden deck landing with railings. Depending on historic guidelines and budget constraints, I may just patch the cement and repair the railings.
7. Windows - a number of the windows on the property are not original and do not match the original style. I have recovered 4 original wooden sashes from the property, which can be restored and installed on new jambs matching the originals. For the remaining windows, in less-conspicuous locations, I am considering installing new double hung wooden windows matching the style and compatible with the dimensions of the originals, for example: https://www.homedepot.com/p/JELD-WEN-33-375-in-x-4....
8. Doors - The front exterior doors are deteriorated and the security doors do not match. Security doors are a mandatory security requirement for this area. I'd like to install the following matching security and doors (although no trim of jamb will be removed or impacted) similar to these: https://www.homedepot.com/p/Unique-Home-Designs-36... and https://www.homedepot.com/p/Feather-River-Doors-36...
9. Paint - I plan to paint the exterior in a historically appropriate 3-tone color scheme, likely white with grey trim and black sashes.
10. Siding repair - the 1x8 wood siding has minor rot in a few small inconspicuous areas, that I plan to replace by weaving in appropriate new wooden planks matching in dimension.

Except for the roof and car crash damage, I plan to do most of the work myself on a tight budget. The interior work is mostly minor plaster repair, paint, and flooring, thankfully. Based on the wording of the website, I'm a little unclear on how the repair spend thresholds work in a historic area and what permit I would need, depending on which projects I decide to take on (windows/doors, decks, fences, roof, appear to require a permit in any situation).

I really appreciate any recommendations or direction you all can provide, so I can make the process as smooth as possible. Please don't hesitate if I can provide any additional information or if you would like to discuss.

Regards,

[Redacted]

Nearby structures on Metro:

I don't own any properties in Clayton county.  Clayton came on my radar as an opportunity through ATTOM Data Solutions Single Family Rental Market report.  Clayton is supposed to lead the country in gross rental yields at almost 24%.  I'm not sure the methodology behind the figures and it could be inflated by returns from large real estate groups that bought up high numbers of homes after the crash.  

I would be curious if someone can confirm if there is still opportunity there and to what extent the numbers live up to the hype for those entering the market today.  

I'm not a fan of the platform, but I've found some great leads for more-rural properties on Facebook Marketplace, of all places.

I've never seriously pursued any, though, since I like working near where I live (time=$).  However, with lower competition and high returns, I can see why it's attractive.  

Hint: Clayton county has some of the best rental returns in the country.  

It's sketchy, but not a war zone.  I guess for me the difference is the area's importance to the city's strategic growth and activeness of policing and security efforts.  

I think you can find good working class tenants in that area to make most investments work, but expect to do some extra vetting.  Since you're into multi-family, I imagine your outlook is at least 3-5 years.  If that's the case, I believe the numbers on multi-families in Washington Park are a good near-term opportunity with a strong upside potential in the middle-term.  

Hi, Kenny.  I've been there as a landlord on a couple of occassions.  

I HIGHLY recommend you take a deep breath, walk away, and be grateful it wasn't a more expensive piece of education learned the hard way.  

You will most likely only lose money and time if you take ANY action.  Sorry this happened to you!  PM me if you want to chat about your options. 

I just ran this metric on the last 2 rentals I bought (SFRs, Pittsburg and East Point) and they both come out to 1% and change.  For this market and alternative investment vehicles, I would consider these properties to be solid investments.  

Reach out to David Camero at New Western.  They tend to find good deals you're not as likely to lose on, but for the margin they make you could source similar deals yourself.

If you need a good GC who's cheap and smart and shows up and is available right away and is true to his/her word...good luck.  

I'm lending at 10.25%.  For regulatory purposes, the lender has to pay the $30/month or so for the loan servicing company, which worked out to around .25%, hence the odd number.  I worked out 15% down based on thoroughly underwriting the buyer and his father (a real estate attorney) who co-signed.  Buyer paid all closing costs, including owner-finance related docs (e.g., note).  

In Georgia, you'll need to work with an attorney to close.  My attorney has done at least a couple owner-financed deals involving FCI, so happy to get you in contact.  

Don't be worried about starting a dialogue.  Remember to stay flexible.  It's difficult to predict which angle of the deal is important to the other party, but be prepared for some give and take to make sure everyone feels like they are getting a good deal.  

Looking good, David!  I do almost all of my own work, unless I need a really serious job done (e.g., massive structural repair).  I've got a couple guys I can call to give me an unskilled hand on the weekends.  

Hi, Nina.  I owner financed a property I sold and I have extensively researched using owner financing to buy a property.  Also, I live in Adair Park, less than a mile from that area.  

My initial impression is your revenue expectations are probably a little inflated.  Also, factor in that your turnover will be very high compared to most markets given the student population and low-income area.  

I would start with a conversation before you put any numbers/facts/figures in front of them.  They may reject the idea outright, but you need to be prepared to counter their objections right away.  I would recommend researching USLegalForms and FCI Lender Services.  You need the buyer to understand they will keep the security deed until/unless you completely pay them off.  You can use a loan servicing company so it's totally impersonal and you can autodraft every month.  FCI will even help the seller foreclose on you without the seller having to get their hands dirty.  

You need to be prepared to pay premium interest and price point, especially if you want no money down  First impressions, I would never do no money down owner-financing, even at premium interest and price point, as a seller because it doesn't allow the seller any buffer if they need to foreclose.  

Let me know if you want to connect.  I may be able to do a drive by when I'm back in town this weekend, if you want.