All Forum Posts by: Pratik Kochar

 I am going to renovate 3Bed/2Bath 1170 Sq. Ft ranch home with new appliances ( Refrigerator, dishwasher, stove(electric or gas), washer/dryer, microwave etc and contemplating whether it requires and electrical upgrade from 100 amps to 150/200 amps.

Currently the HVAC system installed for central heating/cooling is  15 amps)and there is gas water heater.

Do you anyone know if this needs to a mandatory upgrade or any recommendations around the same and what it can cost to upgrade electric panel to 150 amps/200 amps?

@Tamika Howard were you able to upgrade to 200 amps? I am in the same boat and looking for electric contractors in GA area.

I have looking for 3Bed/2Bath 1170 Sq. Ft homes and going to renovate with new appliances ( Refrigerator, dishwasher, stove(electric or gas), washer/dryer, microwave etc.

HVAC system is electric (15 amps) and there is gas water heater.

Do you anyone know if what it can cost to upgrade electric panel to 150 amps/200 amps?

Hello BP Members, 

Looking for contractors/handyman in Atlanta area to do a light rehab in 1100 sqft townhome.

Scope of Work - entire home flooring(removal of carpet), interior paint, light fixtures, fans, kitchen cabinet(reface or paint) along with hardware, countertops, bathroom vanity, shower fixtures

Hello Community,

I'm considering an investment opportunity and would like to gather your thoughts and insights. The property in question is a duplex, built in 1985, and consists of two adjacent townhomes that can be sold individually. Both properties fall into Class B- category and has no HOA and no rental restrictions.

Here are the details for each property:

Property 1:

• 3 Bed, 2 Bath (1020 sq ft)
• Purchase Price: $250,000
• Moderate rehab needed (Kitchen, floor, bathroom sink vanity, light & fan fixtures, interior paint)
• Rehab Cost: $30,000
• After Repair Value (ARV): $295,000
• Down Payment: 20% (Out of Pocket: $50,000 + $30,000 (rehab) = $80,000)
• Projected Rental Income Post-renovation: $2100/month

Property 2:

• 2 Bed, 2.5 Bath (1168 sq ft)
• Purchase Price: $230,000
• Moderate rehab needed (Kitchen, floor, bathroom sink vanity, light & fan fixtures, interior paint)
• Rehab Cost: $30,000
• After Repair Value (ARV): $295,000
• Down Payment: 20% (Out of Pocket: $46,000 + $30,000 (rehab) = $76,000)
• Projected Rental Income Post-renovation: $1900/month

The location is moderate, with amenities like shops, restaurants, a mall, and a baseball stadium within a 5-mile radius.

Considering buying both as they are in the same building, the total cost and income overview would be:

• Total Price for Both Properties: $478,000
• Down Payment & Closing: $96,000 + $10,000 = $106,000
• Total Renovations: $60,000
• Total Price (Including Renovations): $478,000 + $60,000 = $538,000
• Total Out of Pocket: $166,000
• Projected Gross Rent Monthly: $4000
• The rate of interest for the mortgage is 7.5%.

I am currently evaluating: A) The break-even point for two townhomes considering a cash investment of close to 32%. B) The pros and cons of having two properties instead of one (especially in terms of liquidity). C) The worth of investing $30k in sweat equity, considering this is an out-of-state investment.

I would appreciate any insights or advice you could give me on this potential investment.

Thank you in advance for your input.

Hey Shelby,

Welcome to BP! I live in California and I started my real estate adventure in Atlanta in 2022. Right now, I've got two properties under my belt and I'm on the hunt for the next great find in Atlanta. If you've got any questions or just want to chat, feel free to hit me up!

Quote from @Michael Dumler:

@Pratik Kochar, how are your two new construction properties performing? It sounds like you know which avenue to take based on experience and risk tolerance. While speculative, I'd recommend sticking with new construction and refinancing if rates come down in several years. Buying in A/B-class markets like Marietta and Lawrenceville will not require property management as long as you properly screen prospective tenants. Needless to say, if you do continue to scale, it's best advised to hire a property manager. Otherwise, your investments will soon become a full-time job. It's not always the case, but many property managers will provide a discount if you bring them a portfolio to manage—something to keep in mind moving forward. 

Stick with those A/B-class markets for peace of mind, especially since you live out of state. C-class markets are C-class for a reason. No growth, job security, new infrastructure, poor school systems, lack of policy enforcement, etc. Money is made via appreciation. While it can be implemented successfully, trying to time an up-and-coming market is risky. I'm happy to connect and share insights as an investor-focused real estate agent and Cobb County resident. 

1st Property I bought in 2022 is 20% value appreciated and yielding a cash flow of $300/month. Other one I bought is yielding cash flow of $200. 

P.S I got both the properties from builder's lender at around 6% for 30 YR fixed and will be planning for Cash out refinance on 1st property to get 70-80% of my down payment money back and invest those in getting more properties.

For new construction, I am pretty much confident with my previous experiences and will be a smooth ride for me. But I wanted to explore the Class B properties to diversify my portfolio.

Quote from @Travis Biziorek:

Hey Pratik, I'm personally not a fan of new construction because there is no value-add. It's great to have real estate exposure but you're missing a big part of the benefits if you aren't creating equity out the gate.

I invest in Detroit where the housing stock is older. Honestly, it's not as big of a deal as people make it out to be as long as you're addressing mechanicals, or you're prepared to. Updating plumbing, electrical, etc. is not as expensive as most folks think, especially in smaller homes that are abundant in the Detroit market.

You also have the budget to do BRRRR's in a market like Detroit, but please don't try and go that route on your own.

Happy to discuss the opportunities in the market there and/or send you some resources. I own 12-doors in Detroit myself and stay extremely active there outside of my own stuff.

Thanks for the inputs. I would appreciate if you can send some resources to understand the Detroit market. Since I already own two properties in ATL market and thinking to expand it over there for couple of more properties but would love to explore other markets as well.  

Hello BP Community,

I am a new member, an out-of-state investor, and currently self-manage two new construction properties in Georgia. I am considering my next investment and need advice.

I am contemplating between buying a new construction in good markets like Marietta, Lawrenceville, or going for older single-family homes in areas like Covington, Conyers, Loganville. My budget for this year in cash is $100k that can be used towards downpayment, closing costs, fix small things, property management fees, lender fees etc and rest will be looking for conventional financing as of now.

New constructions offer better interest rates, minimal maintenance costs for 2-3 years, and potential for self-management due to higher rents. However, the high purchase price is a concern. Older properties could allow for a higher quantity of investments and potentially more cash flow, but I lack experience with these and would consider working with investor friendly realtor and property managers.

I would greatly appreciate any advice on:

1. New constructions vs. older homes.
2. Self-managing or working with a property manager.
3. Identifying promising locations for long-term rental investments.

Thank you in advance for your time and help.