Multi Family Home - Norcross GA

[Ratheeh Krishna]

Hello All,

I am looking to buy a multi family unit in Norcross, Georgia. The property provides a cash flow of about 380$ per month. My calculations show a cap rate of 7% and COC of about 8%.

1. Is the cap rate and COC good enough in current market condition?

2. What do you think would be the average growth of C Class markets like Norcross and Lawrenceville GA in the next 5 years?

3. What other factors should I look at before making this investment?

4. I understand that the market is a little over priced now. Is it a good time to invest or am I getting in at the peak of the cycle?

Your thoughts and guidance are much appreciated as I am just taking my baby steps in real estate investing.

Thanks,
Ratheesh

[Alex Babayev]

@Ratheeh Krishna The market in general in GA has very slim inventory for multi family now. On MLS I only see around 150 units posted in total. You can check out Marietta, Norcross, Stone Mountain. I see 10% cap rates there.

Check out my latest article talks about my Duplex I bought in January

https://www.biggerpockets.com/forums/223/topics/445157-how-i-increased-rent-by-47-in-1-month--duplex-value-add-cash-cow?page=1#p2767396