I am done sitting on the sideline and now I am ready to purchase my first buy and hold investment property to rent out.
I have my pre approvals from the bank and with 20% down payment I can only afford to purchase a property under 75k. In the Atlanta metro area I am not finding a good selection of properties that don't require a lot of work.
1. Do I have enough cash to investment in class B rental property right now? Should I save up more to find better quality properties?
2. Are there any banks in ATL market that do investment properties loans with lower down payment?
I have targets that I want to make in cash flow, but I am not sure if it is realistic with the current budget I have.
I can't speak to the market there in Georgia, but there are definitely areas around the country that you could get a rental for under 75k. That being said..... there are also some cautions for some of the really cheap areas. While the deal may look good on paper, it can turn into a nightmare with the wrong tenant, or wrong management team.
For a 75k house you will need about 19-20 k after all closing costs, inspections, escrow pre-pay etc. If you waited till you had 25k then you would have a lot more options depending on what area you want to put your money into.
It also depends on how much of a 'hands on' investor you want to be. If you have the time and desire to really put a lot of time and effort into a property, you could probably really make some good money with a $75k house.
My personal preference is to find properties that are already fully rehabbed, and fully managed and still produce cashflow. This strategy also opens up opportunities for out of state investing. There is definitely a good market for these types of properties in the 80k - 120k range.
It will all boil down to personal preference. I started out investing within the last year and have found some decent deals.
@Ejayce Bond coincidentally I just heard a podcast that may be more relevant to your situation. listen to 'rental income podcast episode 141' with Dan lane. This is about the rental markets in Atlanta and some personal experience from an investor
Will do! Thank you @rob hakes
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