All Forum Posts by: Eric Halverson

 Pm me your email

Brand new construction in neighborhood, no flood zone, LVP throughout, granite countertops, and really solid cash flow.  Management in place but feel free to use your own if you'd like.

Property is completely turnkey and tenants will be moved in February.

Who would I contact about that?  just realized i got billed 3 times.. I guess prepping for taxes is good for a few things

Old thread revival I see... Atlanta is still awfully tough although stuff bought in 13, 14, 15 that I thought were overpriced seem to look decent now.  

Bob, I dont know where that website gets its info but rents are up way more than 10 bucks I can tell you that.  Low end is up least 50 and high end.... Up significantly.  Examples I own are 2200 in 2013 to 3000 now in a good area.

If you've got some good multi family now is a fantastic time to sell, I agree.

there is the argument that rates are amazingly low right now so taking advantage of those can be beneficial.  I'm looking at one now that is a good value add but its the first deal I've liked in 6 months.

not everybody all at once now...

I always like to see what others are doing to spur ideas.

I'm looking for multi family deals but that market has been saturated with international money so I haven't seen anything good outside of a value add deal where you need major bucks, 10 million +.  Unfortunately I'm a little shy.

I'm buying in better areas of secondary markets I think have solid CoC returns right now waiting for Atlanta to simmer down as its been blazing hot and I'd rather not buy at these prices here outside of the random one off thats a steal but those are tremendously rare. Appreciation potential is low but I need the passive income and feel I have some equity in each purchase made (not a ton).

So.. what are you guys doing?  Finding success?

Hey Ben, I just briefly reviewed your article; the only issue I have with it is your cost assumptions.  They are crazy high, like not even remotely in the ballpark so therefore we disagree :)

I think there are a lot of areas in the country where this doesn't work though for sure.  

Entertaining thread... a couple of things of note here:

When you've got a 30k house its likely going to be close to 1k square feet give or take a few hundred (mine are anyway).

So roof is not remotely close to 4k. I can get it done for 2100 for example.  

Taxes and insurance for the properties I have in that range total 850 bucks

If you have hardwoods or plank you don't have flooring issues for a significant period of time.  I can paint the house for 5-600 bucks at each turn.

HVAC, water heater, appliances will cost over time but I get an entire appliance package of name brand appliances for 1k.  Water heater is 600 and HVAC is around 2800 for me.  The nicer window units are also an option for some.

I can understand why people who buy high end homes overstate repairs but you've got to keep in mind the size of the homes being discussed.  Also, not all 700 rents are created equal so I buy in markets where 700 isn't ghetto.. In Atlanta most 600-700 areas I avoid but there are some secondary markets but its not bad at all.

I typically will buy a range of homes in an area that I like so I buy a few low end homes in areas I think are ok given the cost/rent ratio.  I'll also buy the bulk of my homes in the 850-1100 rent and be in them from 50-80k price range and then a couple of higher end homes that can potentially appreciate better that will rent up to 1500 or so.

I understand the "smart money" thought process but just because you pay more doesn't mean its smarter.  A lot of these things depend on your ability to hang on through the downcycles.   If you have the means to buy/hold in the markets that have historically appreciated you can do very well.. but tragedy and circumstances come around where you may have to sell and in those times it can be a brutal hit to the downside.  If you buy in 2006 and are forced to sell in 2010/11 you lose a fortune in those markets.  The 30k houses have essentially no downside risk as its traded amongst investors.  Tenant risk, absolutely but there's much less timing risk.

I copy/pasted his email, I think he was an ivy league undergrad and school of hard knocks post grad.

Obviously I am stupid; at the beginning we discussed commission numerous times so I thought he had integrity, whoops!

Thankfully it's on a cheap property but as mentioned before the principal is more the irritating thing.  I do know better to have stuff in writing so I guess I am unfortunately the clown.

I am an agent, yes.