Atlanta - Single Family Home

Discussion in 'Where to Buy' started by 380, 28th Jan, 2017.

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  1. 380

    380 Well-Known Member

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    Property : Single Family Home

    Location: Atlanta - USA
    2 House across this project: Atlanta- Quadplex to Single Family Conversion
    We bought few on this street and other investors are in process of rehab of surrounding houses


    Why: 1. Buy n Hold
    2. Renovate n Flip

    Numbers:

    1. Buy n Hold

    Purchase Price: $100K

    Gross Rent: $850 per month X 12 = $10200

    Net Rent: $850 * 7 = $5950

    Net yield: 5.95%

    2. Renovate n Flip

    Haven't
    had a chance to get an quote for rehab as yet - hoping it will be around $20-$25K at best!

    At High Level:

    $100k Buy
    $25K Rehab
    $12k Selling cost
    $5k Misc

    ____________________
    $142k Total

    Estimated Resale: $200K-$215K

    Profit: $50K-$65k Approx!
     
    Last edited: 29th Jan, 2017
    EN710 likes this.
  2. 380

    380 Well-Known Member

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  3. GalacticExplorer

    GalacticExplorer Well-Known Member

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    Thats assuming you can find a tenant. Atlanta has like 8% vacancy rates.
     
  4. MTR

    MTR Well-Known Member

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    I have 13 properties in Atlanta been renting since 2011, never vacant, and never had a problem finding a tenant, rents have been soaring since 2013. I have always had multiple applicants.

    Not an issue, if we are talking Perth, well you could be sitting and waiting for a tenant, never seen anything like this before, oversupply
     
  5. 380

    380 Well-Known Member

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    It's already leased!

    Anything around $900 -$1200 per month rent market is hot!

    I saw multi unit of 80 leased in two weeks - that is 6 weeks ago when I was in Atlanta!
     
  6. S1mon

    S1mon Well-Known Member

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    25k rehab and it almost doubles in value? i realise 25k goes further..but still, i find it hard to believe
     
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  7. MTR

    MTR Well-Known Member

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    Crazy stuff really. You have to buy at the right price, significantly under market value

    Buying prior to it hitting the open market helps, but you need the contacts/wholesalers

    Belt line in Atlanta (Google this) is gentrifying, gone from hood to funky hipster ville.

    We purchased a block of land for 50k in July 2016, they sold the block across road for 109k within 6 months, Building in progress, we are just buying as many as we can, flipping, developing, whatever works
     
    Last edited: 28th Jan, 2017
  8. S1mon

    S1mon Well-Known Member

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    not sure the cap gains over 5 years is comparable to cap gains for a 25k reno on a 110k house, with no (little) holding time. surely some of the hotness would be factored into the price, no matter how good your contacts are
     
  9. MTR

    MTR Well-Known Member

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    not sure what you mean, we Only buy properties with a minimum of 20% profit if we flip
     
  10. 380

    380 Well-Known Member

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    There are lot of factors that come in to play when buying such deal!

    Cash buy
    Portfolio liquidation
    Unhappy landlord with tenenats issues wanting to get out of drama
    Repairs
    Due taxes
    Lien



    If one can secure sub $100k decent house around beltline - you are in the game.

    This particular street is changing its face - community garden across the property - new houses -school, etc.

    Turnkey product in surroundings are selling for $120 sq foot

    You do the maths

    $120 x 1800 sq foot

    $216000


    Local flip players would work on min 30% margin on flip deals - we are at around 20%

    Only way to get in is to cut profit margin + cash buy + quick closing
     
    Last edited: 29th Jan, 2017
  11. Danyool

    Danyool Well-Known Member

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    But isn't your margin looking more like 40%?
     
  12. 380

    380 Well-Known Member

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    I meant our cut off point is at 20%

    Local flip players at 30%