All Forum Posts by: Watson Smith

@Dan Pepitone Very true and I was getting the same vibe as I was riding through those streets this weekend.

One unit of this duplex caught fire. Units are only connected by a small breezeway so other unit survived with out damage. Most of damage is in the living room, kitchen and hallway leading back to bedrooms. Both bedrooms did well but all drywall will need to be removed. Some ceiling joist and studs will need to be replaced. Unit will need all new electrical, drywall, frame work, roof, carpet, complete kitchen, several windows, stucco work, complete bathrooms and other smaller punch list items. ~45k
Good side will need new carpet, paint and drywall work in ceiling ~ 8k
Units rent very easy for $675 and up to $750 for updated ones. This is a great rental neighborhood.

Sold As-Is and cash only.

This is a good thread and I'm glad someone sent me a link. As someone interested in picking up a trial house in this area I do have a few concerns.

The Beltline is relying on a lot of private money and it's already behind.
You’re talking about transforming a whole area... That means you either move the current residents out (quickest - but where do they go?) or you improve the residence through education and employment - and that could take generations.

A new dome or walking trails won’t change this city that fast… They are great starts but we need employers to move into Atlanta. Employment drives housing more than anything.

If this were any other city I think it would happen quicker… But this is Atlanta. The city is broke and corrupt. The Braves packed their bags and left for crying out loud.

With all this I’m still interested in testing the waters down there. Why? Well, it can’t get much worse. Cash flow is cash flow. If the tides turn then you can capture the appreciation and if not… You continue to rent them out. I would never get over leveraged down there but I do think one day it’ll turn (20-30 years down the road).

Edit

@Dan Pepitone What neighborhoods do you invest in for zip code 30315?

How does it compare to 30032?  I've been in 30032 for a while and somewhat enjoy it.  My tenants are all referrals from others and haven't been too bad.  But after driving through some of the areas I did this weekend... Decatur looked like heaven.  I was blown away with all the abandoned/boarded up homes.  There where still entire streets of them vacant.... Then you'd turn the corner and find a street that looked like it was stabilized.  Pittsburgh is the neighborhood that I'm mostly referring too.

@Mark Graffagnino I think you find tenants like that everywhere.  I've had a few of those in my properties in Conyers.  When you list in Collier Heights what kind of demand are you pulling?  What kind of employment do these applicants have?  Young/older/ large families?  Whats the range of rent you ask for?

Anyone invest in 30318?  

I picked some properties in 30310, 30314, 30315, 30318 this weekend to look at... I'm use to 30032 being rough but those zipcodes I looked at this weekend looked like a war zone.  I felt best about 30318 and anything close to some local parks but wow...  Anyone care to share their experience with that part of Atlanta?  I buy and hold them for rentals.

Thanks

Best of luck.  Glad to see another Georgia boy getting in the game!  Are these located in GA?  If so, what part?

This is why you have insurance. Your policy should cover lost rents so claim that as well. Get 3 estimates on the damage and push back hard on the insurance company if they try and low ball you. I'm dealing with the same issue now in a duplex. Your tenant isn't going to pay and unless they had renters insurance their stuff will be gone as well. I gave mine some Walmart gift cards and clothing and sent them on the way to find a new place to live.

I don't know if I could justify paying 62.5k a unit for $700 a month rent.  I know duplexes in C neighborhoods that are 90-100k and rent for $675-725 easily (1000sqft 2/2 each side)... And have been on the market for a while.  I don't think its a bad return like Chuck said.. I just think theres better out there.  The strong point of this deal is the loan due being an owner occupant.  This would have to be in a very good school district and neighborhood for me.