Why are prices so high for multifamilies in Smyrna,Ga?

1 Reply

Hi everyone.

I'm looking for a duplex in the smyrna metro atlanta area and I saw one listed for almost 250k. From my analysis, I think that rents can go for maybe 1200 to maybe 1300$/mo per unit with renovations to make it look like the many new apartments in the area.The neighborhood that it's in is only charging between 950-1000(without renovations). With the financing that I have , I would be charge over 1500/ month when the reassessed taxes hit from buying at that price. The thing that puzzles me is that there are people who bought for over that price last year. Do we still have a lot of room left to grow as far as rents or are people just overpaying at this point? I'd like to house hack a duplex in the area but I'm worried I might not have an exit strategy without having negative cash flow.

People are "overpaying" because they are willing to put more down and cash flow, it sounds like you reach or almost reach 1% on this so it doesn't sound that bad, in my area that would be a steal, all real estate is relative.

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