Need advice on property analysis

6 Replies

Hello all, 

I am looking at a property in Fairburn Ga, 115k, 1175 sq feet, renting for 1095, 2001 built

Property taxes 750

Vacancy 5%

Maintenance 5%

Leasing 800 per year

Will do conventional financing with 20% down will cash flow around $200.

Is this a good neighbourhoof to invest in.

Do the numbers look good. 

Any opinion highly appreciated

Also looking for good realtors in Atlanta, any recommendations highly appreciated. 

Thank you

@Souji Kumar Is your maintenance number inclusive of Capex or do you separate that out? If not, you need to include it. I'd say an estimate of at least 10% Capex/Maint is more common in evaluations. Also, some quick online searching shows vacancy at much closer to 10% than 5% for that area.

Overall, I don't really know much about the Fairburn market, but another quick search online shows that the city is growing, which is a plus. However, there can't be more than 3-4,000ish family households in the city which would be your market. You need to be comfortable and cognizant of that which could be too small a market for some people. As for work in the area,  many people could commute to ATL for work, but I'd look at what industries are more specifically there, Palmetto, Union City, etc.

As for the numbers, it depends on who you ask. Cash flow around $200 would be pretty nice and that is at least what I would expect to see per door on SFR. However, that number could be a bit smaller if you aren't including Capex and a higher vacancy rate.

thank you @Alex K.

Do you know any good realtors in the area, reliable who can find a good investment property in the area?

Thanks

@Souji Kumar Do you think $200 per month is a good enough return to borrow $100,000 in an area that you know nothing about? Really? As Grant Cardone would say, " I could get $200 standing on the corner with a sign that says Help."

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