Hi all,

We're new to the Atlanta market, and have been browsing MLS for SFHs in the $200 - $325 range in Marietta/Roswell/Alpharetta/Chamblee neighborhoods.

Almost all of the places that we seem to come across offer pretty minimal / negative CoC returns, and I wanted a quick sense check of the assumptions we're running.

Where am I being overly conservative?  In the current state, I cant see a path to >5% return - thoughts would be greatly appreciated :) Thank you! 

You're not going to find any deals on the MLS in the Atlanta market. Waaaaaaay too competitive and inventory is way too low. Look off market.

The areas you listed are not going to cashflow unless you find deeply discounted properties. Those areas will probably see good value appreciation but your CoC will be red.

Hey @Ashwin Subhedar , welcome to the BP community!

As others have already mentioned, those areas you're looking are not cash flow markets. You will likely see stable rents and solid appreciation but not cash flow. The exception, of course, would be if you found some severely distressed property off-market. 

If you're set on Atlanta, you'll want to look elsewhere for cash flow. There are still some markets where cash flow can be found, even on the MLS. The problem is that right now homebuyers are bidding SFR in these areas out of cash flow on most occasions. You'd still be wise to look off-market or find a niche that is not seeing heavy interest from homebuyers.

Hope this helps a bit! Please, feel free to reach out anytime if you have other questions or just want to chat about the ATL market!