Johns Creek Homes and Real Estate

Qwerty,

It is good hearing from you. We are one of the few original IHB veterans still remaining on this forum.

I may add one more property in 2014, but for now i want to take a rest in asset acquisition and focus more on building my brokerage here in Johns Creek. The Fannie/Freddie guidelines are 10 conventional loans: 1 primary and 9 rental properties.

I measure financial wealth not by how much assets one has, but how much passive income one can generate. I believe if one can generate $100,000 passive income, he is well into the beginnings of financial freedom.

One would need $1.38M real estate assets free and clear in investment properties to generate a $100k passive income here in Atlanta. One can own 7 $200,000 rental assets and achieve this passive income goal. To achieve a higher passive income than $100k a year, one would need to acquire more investment assets.

$1.38M real estate assets can generate $100,000 sustainable passive income, but it is almost impossible to generate this type of passive income consistently with a $1.38M stock market portfolio.


qwerty said:
baby irvine - so how many investment properties do you own now? when you say that this is the last of the 30 year loans? do you mean you are done buying? if i remember correctly you wanted something upwards of 10 homes.
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OMG. These posts are epic. I quickly scanned and saw a day in the life of Baby Irvine includes: Jamaican Scam, a hip hop artist, and a black person pulling the race card. I need to set aside like 45 minutes later tonight to digest these posts. The Panda is back! Yesss.  :D
 
Baby Irvine said:
Qwerty,

It is good hearing from you. We are one of the few original IHB veterans still remaining on this forum.

I may add one more property in 2014, but for now i want to take a rest in asset acquisition and focus more on building my brokerage here in Johns Creek. The Fannie/Freddie guidelines are 10 conventional loans: 1 primary and 9 rental properties.

I measure financial wealth not by how much assets one has, but how much passive income one can generate. I believe if one can generate $100,000 passive income, he is well into the beginnings of financial freedom.

One would need $1.38M real estate assets free and clear in investment properties to generate a $100k passive income here in Atlanta. One can own 7 $200,000 rental assets and achieve this passive income goal. To achieve a higher passive income than $100k a year, one would need to acquire more investment assets.

$1.38M real estate assets can generate $100,000 sustainable passive income, but it is almost impossible to generate this type of passive income consistently with a $1.38M stock market portfolio.


qwerty said:
baby irvine - so how many investment properties do you own now? when you say that this is the last of the 30 year loans? do you mean you are done buying? if i remember correctly you wanted something upwards of 10 homes.
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Depends on how you invest....I can generate 6 figure annual gains with 1/5th of the amount that you mention above. 
 
Fifty 70 year old executives were asked, " What they would do differently if they could live their lives again.

Top Answers:

1) I should have taken charge of my life and set my goals earlier. Life isn't practice. It is the REAL THING.
2) I should have taken better care of my health.
3) I wish that i would have managed my money better
4) I wish that i would have spent more time with family
5) I would have spent more time in personal development.
6) I wish I would have had more fun.
7) I would have planned my career better
8) I would have given more back.

 
Baby Irvine said:
Fifty 70 year old executives were asked, " What they would do differently if they could live their lives again.

Top Answers:

1) I should have taken charge of my life and set my goals earlier. Life isn't practice. It is the REAL THING.
2) I should have taken better care of my health.
3) I wish that i would have managed my money better
4) I wish that i would have spent more time with family
5) I would have spent more time in personal development.
6) I wish I would have had more fun.
7) I would have planned my career better
8) I would have given more back.
Click to expand...
I'm sure that's how everyone feels but if you're not a top exec, some of those things you can't do.
 
Panda-

you say "passive" income, but in your spreadsheet, I don't see budgeting for management, maintenance, etc.

are you actively managing these rentals, or using a service?
 
freedomcm said:
Panda-

you say "passive" income, but in your spreadsheet, I don't see budgeting for management, maintenance, etc.

are you actively managing these rentals, or using a service?
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As well as vacancy and repairs.  Being a landlord is also work and is not for everyone.
 
irvinehomeshopper said:
Baby Irvine and IHO are like the tortoise and the hare in buying properties.
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Are you saying IHO will win at the end?  :)

By buying the one, the last of 3CWG in Irvine, IHO gains more equality than Panda with 10 SFR in JC.  IHO will live happily ever after.  the End.
 
irvinehomeshopper said:
Baby Irvine and IHO are like the tortoise and the hare in buying properties.
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The difference is I'm buying a home to live IN, Panda is buying homes to live ON.

If I could turn back time (Cher reference)... I would advise my parents to buy that condo in Irvine way back when. By now that could have been flipped/leveraged into a Shady Canyon home. :)
 
Baby Irvine said:
One would need $1.38M real estate assets free and clear in investment properties to generate a $100k passive income here in Atlanta. One can own 7 $200,000 rental assets and achieve this passive income goal. To achieve a higher passive income than $100k a year, one would need to acquire more investment assets.
Click to expand...

In newer Irvine developments, assuming fully paid, a $1.38M house (or two $700K house) will probably get you max $60K/yr in rent (~$5K/month).  Take out $20K in property tax/MR plus HOA, insurance etc, you would be lucky to net $35K/yr  :-[
 
Freedom,

8% is a standard vacancy rate used by investors. The area i have been investing in the last 3 years is South Forsyth County. The rental inventory in this area is less than 1.5 months so it is not very uncommon where i would have a tenant already lined before i close. I self manage all of my personal rental properties. In South Forsyth County, you are going to get apprecation, good quality tenants where managing is very passive. After the first year, I would raise the rent about 3% which would cover the maintenance. First year is fully covered by warranty so i did not include the maintenance in my P&L. I have 2 year contract with 700+ credit tenant already lined up so i did not include vacancy in the my PL. 

I am a firm believer that it much better to own 10 premium assets (A school cluster $200k) homes over 20 standard assets (C schools cluster $100k) homes. Both scenarios will give you a $2M rental portfolio, but you will have much more headaches and turn over with 20 standard assets. On my premium assets, my tenants will call me maybe once or twice a year. Your ideal tenants will take care of your property, pay their rent on time, and will call you once or twice a year. This is my definition of a passive investment.

freedomcm said:
Panda-

you say "passive" income, but in your spreadsheet, I don't see budgeting for management, maintenance, etc.

are you actively managing these rentals, or using a service?
Click to expand...
 
2l9rz42.jpg


I moved to Atlanta in the summer of 2011, After I bought my primary residence, I concentrated my SFR investments in the Lambert HS cluster from 2010 - 2013. The home i am closing on April 11th is the first home in South Forsyth Middle / High cluster.

Here is my reasoning why:

Forsyth County is the 6th Fastest growing county in the nation:

Source:http://money.cnn.com/galleries/2010/real_estate/1006/gallery.fastest_growing_US_counties/6.html

20th wealthiest county in the nation:

Source:http://money.cnn.com/galleries/2010/real_estate/1006/gallery.fastest_growing_US_counties/6.html

Demographics of Forsyth County looked ripe for growth.

White 87.5%
Black 3.1%
Asian 7.4%
Hispanic 9.6%

Median household income: $88,262
Per Capital income: $35,277
Median value of owner occupied homes: $274,200.

5 elementary schools in south forsyth are ranked in the top 10 among 1165 elementary schools in Georgia.

2 middle schools in south forsyth : Riverwatch (rank #2) and S. Forsyth Middle (rank #3) are ranked in the top 10 middle schools among 483 middle schools in Georgia. Vickery Middle School which is in west forsyth is ranked #10 in the state.

Property taxes are less than 1%, Strong job growth, and the Asian demographics of Atlanta is currently exploding into South Forsyth, and the appreciation following.


Back in 2003/2004, I saw how new construction in a town home community called Casalon in Quail Hill would rise $15,000 - $20,000 every phase release. I remember someone bought a Casalon in Phase 3 and flipped it for $30,000 profit in phase 4. This is the first time i was introduced to a concept of new construction flipping. I now see a similar scenario here in Johns Creek playing out. There are hardly any inventory and long lines of Asians forming to buy new in Lambert High. Champions Run, a new subdivision in Lambert cluster already has a waiting list of over a hundred in their new phase release.
http://edwardandrewshomes.com/wp-content/uploads/2014/01/Bridleton_SitePlan1-6-14.pdfhttp://www.ryland.com/find-your-new-home/1-atlanta/6120-bridleton.html

Bridelton, is new development located in the most expensive area of Forsyth and I personally see an opportunity to flip new construction like I saw in the Casalon Townhome in Irvine 10 years ago.
 
Baby Irvine said:
The third was not a scam, but dealt with a hi pressure agent who told me that she had highly qualified tenants. I asked to pull the credit score and they insisted that i take their pre-made credit report. She pulled out the "racist" card when i turned down her applicants down accusing me that i don't like black people and wanted me to apologize to her clients via three way calling. Young African american couple making $30,000 each. Tried to use her mom's annuity payments to make the ratios work. credit scores were in the 500s and living pay check to pay check. 3 weeks later the agent came back and asked if she take the listing to sell. I don't care if you are green, purple, or orange... 500 credit score, marginal income, and less than $1400 cash reserves is asking for trouble.
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Baby Irvine, I think that last sentence you wrote is perfect. Well said. Bravo! I hope you told the agent or applicants that exact same thing, too. What really pisses me off is that they don't want equal treatment. They want preferential treatment. As you said, green, purple, or polka-dotted, a person's credit worthiness is what it is.
 
Baby Irvine said:
I self manage all of my personal rental properties
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Baby Irvine, I know you are careful but be extra guarded. There have been several news stories recently about tenants doing despicable things to their landlords when the landlord shows up at the door to collect late rent. It always makes me pause when I read news articles like these. Just a reminder how valuable a little distance between landlord and tenant can be especially if the situation has the potential to get ugly.
http://www.nydailynews.com/new-york...slays-landlord-teasing-cops-article-1.1569878

God forbid you ever have an unstable tenant overdue on rent, knock on wood, I'd recommend you buy Qwerchete a plane ticket on the next red eye flight from SNA to ATL to go collect that check for you.
 
Baby Irvine said:
j0en91.jpg


I will be closing on this rental property on April 11th, 2014. This is my last 30 year conventional loan.

I have already secured a 700+ credit tenant before closing with a 2 year lease contract.
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Panda, congratulations on your newest deal.

How many total rental units are you up to now? Or is it impolite to ask?  :) Eh. I'll ask anyway.

I'm confused, though. I thought you mentioned in a previous post that you saw an opportunity to flip new constructions, specifically in Bridleton. How did you decide to rent this one out and forego flipping it? Is it not in Bridleton?
 
I am very pleased with this purchase. My cash on cash return is right around 13%. I got a 2 year lease for $1575 to a 700+ credit tenant. Unfortunately I was the guinea pig for my two investor clients. I secured both of my clients with $1650, one with $130k income, and another with $150k, but had 805 credit scores. One was moving down from New York, the other from Chicago. Both leases start June 1st, 2014. One of client is closing on the 16th of May and the other on the 23rd of May.

It is okay that i got $75 less than my clients, after dealing with beast for the first three months of the year..... I needed to relax!


This one is definitely a winner.

2iiu3a1.jpg
 
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