All Forum Posts by: Trent B Paul

@Jorge Esteban Vargas I work with a 3rd party vendor who helps property owners with his very issue. Figuring out the highest and best use for their land and maximizing that value. A lot of what they do is finding all this information for you and connecting you to the right people to make it happen. Maybe they are worth a call for you, Gather ADU is the name 773-574-5662.

Best of luck!

Hey Matthew, 

@Matthew Lindsey I struggle to think of any situation where you would benefit from closing prior to the eviction being finalized. However,I can think of 100 negative scenarios playing out. I'm not sure of the specifics of the agreement you had with the seller, but if the contract explicitly mentioned them conveying the property either fully vacated or fully occupied, then they are in breach of that agreement and that may be the leverage you need to extend closing or terminate and submit a new offer stipulating that the eviction be completed prior to closing. 

If there are any additional mitigating circumstances, feel free to let me know and we can chat more about your options.

Also, in the state of Georgia, once the eviction notice is received, the tenant has 7 days to pay the full outstanding balance and notify the court that this has taken place. Afterwards, the courts take over. 

 DK Rentals Property MGMT is my go to in this area - great a la carte services. Reach out to Stephanie at 470-723-6811

The most important factor for investors to consider when it comes to making a profit off of a flip is who is my end buyer, what are they looking for, where are they looking and how long does it typically take to find that right buyer in that market.

When reselling you want to go where the demand is because you dont want your listing sitting on the market and having to reduce the price to sell. More often than not, that is A-B class neighborhoods showing positive migration trends and with elementary or high schools rated 6 or above.

Some more in demand areas would be Marietta, Smyrna, Roswell, Sandy Springs Duluth and Suwanee. Some more affordable areas that can still make a good profit on a quality flip include areas on the outskirts of the perimeter that are seeing population increases from homebuyers chasing affordability such as Conyers, Powder Springs, Kennesaw, Acworth and Lawrenceville. Henry County on the south side of Atlanta is also seeing positive trends.

Last thing I would recommend would be to consider holding at least a few flips yourself as most long time flippers i work with/run across mention their biggest regret is not holding some of their best flips and letting someone else reap the many benefits of ownership.

Please connect with a local agent who understands these trends and how they play into a successful REI strategy.

Hey Todd,

Sounds like you found a great property. A few things you can do to limit liability with the pool is get an insurance policy with great coverage and ensure the pool is secure with fencing and a cover when it is not in operation.

Now to address the question of selling or holding, I believe there are three important questions to be answered.

1) Where is the potential STR located? Are there any venues, attractions, large employers or transportation hubs located nearby where tenants may want/need access to short term housing during all 4 seasons?

2) does the predicted cashflow work towards your goals? To find cashflow, determine What your expenses will be. Consider if you have time/ want to make time to self manage or will you hire professional manager/cleaners? I can provide you with a local resource that can estimate what your vacancy, daily rates and monthly revenue should look like based on your location and condition and can also assist with the professional mgmt if you choose so.

Monthly Revenue - monthly expenses will get you your cash flow.

3) If the property failed as a STR, would it also cash flow as an LTR? Planning multiple exit strategies is important to not taking serious losses in this business.

4) how much could you sell for after renovations. What would be the return on your investment? Would you receive a higher ROI by flipping and selling or holding as a rental? A real estate agent with local market knowledge should be able to give you a range of where your home could sell in todays market after your renovations are complete.

Sorry to answer your questions with more questions but the answers to these questions will help light a clear path of where you should take this property. Let me know if I can be more specific or answer any other questions and good luck!

In the Atlanta area, I would focus on finding submarkets within a decent public elementary and high school district. Anything above a 6 or 7 on greatschools.org is a safe bet. Anything above an 8 is almost always going to be in demand for renters and resale.

I would also try to find a property within this market where you can force appreciation by making major or minor cosmetic and functional renovations that will increase your equity. 

Unfortunately, the trickiest part is that the Atlanta market is still one of the hottest in the entire country the beat listings for retail buyers and for investors are still going into multiple offer situations and selling within a few weeks above asking price. Therefore, if you want to find a good deal and not overpay, then connecting with a local investor friendly agent who has the tools and network to find deals not on the MLS is they key to winning in this market.

Great question Beth. But unfortunately, that budget isn't enough to work with without obtaining financing. There are hard money lenders that make a business out of lending for these kind of deals or you could find private financing.

I would focus on either increasing your cash saved up or educating yourself as much as possible on renovations and the South Atlanta market in order to develop a business plan and deal that a lender will approve.

Welcome Randi!

Congratulations on becoming a homeowner and crossing to the other side of the financial freedom wall. You're on the right path! I'd love to connect and share some tips and tricks that  clients of mine have found useful in the Atlanta market, including financing!

I'll message you!

Hey Ying,

I want to commend you for sticking to your guns and not settling for unqualified applicants just to get your vacant rental leased as that takes a lot of fortitude, but is typically the right decision. Also, I do think this may be the best case scenario for you because as you said, the end of their lease puts you in peak leasing season when you command more monthly rent for a longer term than in the winter season.

To answer your question, I'm not sure if $4000 will work without knowing exactly what suburb and neighborhood we're talking about and what the tenants exact needs are. The important thing to think about Is that you're dealing with an insurance company and they love cutting costs. If they do any DD, they may see that they can get a better rate elsewhere nearby. What I would do is reach out to a local Short Term Rental Property Manager and determine exactly what the local going rate is and price closer to that mark to not lose the opportunity.

Feel free to reach out if you'd like me to make an introduction to my go-to STR team to talk numbers free of charge to you