All Forum Posts by: Ryan F.

Jon, excellent points. Thanks.

How much of a hit do you think an armchair investor who works a full time day job should take? What if I don't have the ability to do rehab and manage locally and I have to buy a turn-key product vs. being out of the game completely?

Anyone here can hook me up with a wholesaler, rehab crew, and good property manager in the Altanta market?

Joel, you're in the Atlanta area. What's your take on appraisals there and it's accuracy to market value?
What's your opinion of the Griffin area in terms of growth?
Thanks so much.

Jon, I agree buying above market value doesn't make sense as a general rule. My problem is that the appraisal will be based mainly on poor condition foreclosures. This house was built in 2005 and is in outstanding condition. There are very few recent good comparables off which to get a sense of true market value. I have only the next best thing which is how much it cost to build the house when new minus depreciation. Given this unusual situation in the housing market is it appropriate to make exceptions to the tried and true rules about investing or should I stay disciplined and keep to what's traditionally considered good investment practice? I've made a lot of assumptions in my statements so please feel free to tear apart.

Thanks for your reply Joel.
House is in Griffin, Spalding county. Rents for $1100. Tenant moves in Saturday.
Does good cash flow and below replacement cost justify negative equity?

I'm looking to buy a cash flow SFH in the Atlanta area with 8% CAP rate and 10% CoC return. However, the appraised value is only 80% of purchase price ($100K) so I'll have to kick in $15K extra cash to close with a traditional loan. The price is ~ $20K below replacement cost, but does this make it a good investment?