All Forum Posts by: Randy Lee

@Robert Collins I agree with @Evan Parker, a 50 mile radius is way too wide. You are probably better off focusing on one or two areas or zip codes. Personally, i like 30318 and 30310, but one has to know the specific neighborhoods. The Grove Park area is great for buy and hold. I know there are many old homes there, but there are also a good number of them built in the mid 2000's before the crash that more than likely do not need a full rehab. You'll have to be patient, know the numbers, and be prepared to pull the trigger quickly. There are still opportunities, but the good deals go fast. I suggest focusing on off-market properties. 

@John Robinson I am in the market for both SFH and MFH. I have walked away from some MF deals (including a 12 unit) for a couple of different reasons and will highlight some here. Many MF properties on the westside have been rezoned and left vacant for more than a year, and therefore in many cases cannot be rehabbed as MF. The permitting can be a nightmare, especially to get power. Even if you get through permitting, the cost for rehab can be significantly higher. Some sellers know this, but try to pass it on for cheap without disclosing. I know this because it almost happened to me and its a fight i didn't want. I prefer a MF property that has some cash flow or was at least occupied within the last year, in which case can be grandfathered if it has been rezoned. Another thing is when there are a series of vacant or distressed buildings, it is sometimes better to buy all or buy none, because it is difficult to set rents at market price when the immediate neighbors pay much less. In many cases, these buildings have multiple different owners, which presents another challenge. We've done very well with a 6-plex we purchased 3 years ago that is surrounded by SFH on the same street. If you are going to buy a MF, i strongly suggest you walk into the city zoning and permitting office. In many cases, it hasn't been updated online. Hope this helps

Purchased a single family rental in Grove Park in 2015 when the area was much worse. Took over existing tenant who still lives there. Values have more than tripled since then, but I still plan to hold for long term. Purchased cheap so cash flow is good. I have not increased the rent. Still looking for opportunities there which are much harder to find now.

I agree with mostly what has been said, but i would say that values on the westside is not just speculation. It's not like one is expecting or waiting for a miracle. Actual development is ongoing and there continues to be job and population growth. Retail buyers have been moving in and tenants are willing to pay up to around $1,500 monthly. Even today, after all the appreciation the westside has seen, the prices are still attractive, in comparison to anywhere else intown or in any other major city. That's why many out-of-state and out-of-country investors have been coming to invest here. As mentioned, this is not mortgage fraud values either and lending is not as loose as was the case prior to 2007/2008. Of course, there could be a dip in the market, but nothing that should stop a long-term investor from buying, at the right price obviously. In regards to Grove Park, the Proctor Creek Greenway is completed through the Westside Reservoir Park and phase 1 of the park itself broke ground last year and might be completed later in 2019. Quarry Yards should also be coming onboard later this year, not to mention everything else that keeps coming onboard.. The rail segments for the beltline going to Northwest Atlanta have already been purchased as well.

Indeed, quite a change from when this thread started. Sold comps for renovated homes in the worse southwest and westside Atlanta neighborhoods around the beltline's path are up to around high 200's and i see many being rented for around $1,500 a month. There's still a ways to go though.  Many of these neighborhoods still need to get better and there are still quite a number of boarded up homes.

@Talibah Coleman clearly understand. Thanks for the insight.

@Talibah Coleman is there much potential for appreciation in Clayton County?  Overall, i haven't seen anything in the past or present that makes me think that home values will increase significantly. I've heard and read more about Henry County but not sure of Clayton. I understand that some of what's going on on the westside and southwest Atlanta is speculative (aside from all the big developments) but our investments there have done very well the last few years. Proximity to midtown and downtown is key. I still consider many of these neighborhoods (including English Avenue and Vine City) to be a much safer buy and hold. Of course, the numbers have to be right. In fact i have reason to believe that many low income people who are being displaced in these neighborhoods (unfortunately, and partly because of significant rise in property taxes) are moving to Clayton County. I don't know how that will help property values there. I believe College Park and parts of East Point are also better than Clayton County for buy and hold. If there is something i am missing i will like to hear it.

I appreciate the feedback  @Tarik Turner

@Tarik TurnerThank so much @Matt Wood. I didn't consider BB&T and Wells Fargo but i'll certainly look into these lenders.

I appreciate your response @Luciano A. I did the cap rate calculations but not sure how that will affect an appraisal as appraised values are all over the place. I have just now done the DCR after you mentioned and it seems to be in a good position as well. I will definitely look into more local banks before making a decision. I really appreciate your feedback.

We own a 6 Unit Multi-family in Atlanta and would appreciate any recommendation for Lenders who will borrow at least 75% of the appraised value. We have about 50% loan and 50% cash currently invested in the purchase and rehab and we have succeeded to get it fully occupied. Our goal is to do the BRRRR strategy or at least get back the cash for now, while still making a decent cash flow. We're currently speaking to 2 out-of-state lenders who are both offering a 5/1 and 7/1 ARM amortized over 30 yrs, 3 points and averaging about 6 1/2% interest rates. I would like to know your thoughts on these terms and whether anyone can recommend any lenders (preferably local) that would be best for our strategy who offer good terms and can borrow on a multi-family in the Atlanta Market.