All Forum Posts by: Rob Wilcox

Thanks for all the quick responses!

Will try to cover some of the questions. 

Regarding Flood Insurance, i don't think it is going to be required, but it is on my list to confirm. My personal residence is in a Zone X and we are not required. It's my understanding that Zone X is the best (or least likely flood area) that there is and that is why I don't expect there to be required flood insurance. 

This is a buy and hold, yes. 

Good call on the water damage...will certainly confirm either way. 

Area is near the West End.

Regarding our cash position, the hope would be to do some minor rehab work, mostly cosmetic and in 6 months do a cash out refinance and get whatever we can out of the property and then more the property number 2. Think is why the appraisal is important to us, though it is interesting to hear that some don't think appraisals are as important as comps. 

Regarding the comps, worked to pull the best we could find on zillow. It's mixed, but there are definitely some nice homes. The proposed duplex definitely needs some work, but also looks like it has potential, but that will definitely require some rehab dollars. If we eventually do the rehab work, we would think about moving away from section 8 and raising rents to $900 or more. 

Comp 1:

3 bed, 3 bath, 2,305 sqft

Sold $156,000 on 12/21/15

Comp 2:

4 bed, 3.5 baths, 2,524 sqft

sold $189,900 on 9/8/14

Comp 3:

3 bed, 2 baths, 1,738 sqft

sold $90,000 on 2/13/17

Comp 4: 

6 bed, 3 baths, 1,973 sqft

sold $250,000 on 1/31/17

Comp 5:

3 bed, 2 baths, 1,240 sqft

sold $62,500 on 10/23/15

Comp 6:

3 beds 2 baths 1,414 sqft

sold $151,800 on 9/30/16

Comp 7: (beautiful little home, looks like a recent flip)

3 beds, 2 baths, 1,552 sqft

sold $141,000 on 6/24/16

Comp 8: There is a house across the street, SFH, 4 bed, 2 bath listed for $155,000

Thank you to everyone again for the help!

Hello BP,

This is my first post to BP and very excited to join the community!

My partner and I are funded, open-minded and excited to get started. This is our first deal and we are trying to analyze the property and would love some feedback. Details below:

Duplex in solid area of Atlanta that is transitioning well. mostly SFHs with a few houses in the neighborhood that have flipped and are for sale around $150k to $200k. Most of the houses are well kept SFH 4/2, about 1,500 square feet that have zestimates of $70-90k.

Purchase Price: $134,000

Due Diligence: 7 days (or 10 if we go cash)

Flood Zone: X

Side A (section 8) - Currently occupied ($800 / mo), 6 months into the lease, but have been in the property for 2.5 years.

Side B (section 8) - Signed 12 month lease about to move in this week ($800 / mo).

GRM ($1,600 x 12 = $19,200, $136,000 / $19,200): 7.1

Financing: ($56k cash, $80k HELOC at 3% = $338 / mo)

50% Rule: $800 - $338 (debt service) = Cash Flow of $462

Appraisals: Recently two...two weeks ago $126k, six weeks ago $136k.

Other Details: The property was under contract twice, but supposedly fell through due to the buyers lack of funding (this is probably we don't have).

The numbers seem to work, we are somewhat concerned with the Flood zone, short due diligence period, section 8 and purchase price due to the other houses in the area, but the houses are definitely well kept and the area is definitely transitioning. =

Any help or thoughts are welcome...we have the contract to sign and we are paralyzed.