Investor · San Francisco Bay Area · Member since 2020 · 22 posts · 7 votes
With what's happened in the stock market coupled with an increase in mortgage rates, what kind of cash on cash ROI are you looking for these days on long term rental properties?
In Metro Atlanta, at least, I'm (still) aiming for at least 10% cash-on-cash on long-term rentals.
The CARES Act will funnel money directly to millions of Georgians affected by the coronavirus. And, the temporary GA eviction ban will eventually run its course and landlords will be once again be able to enforce rent payment by their tenants.
Plus, given the scarcity of affordable rental houses there even before the COVID-19 Crisis, and the continued strong demand for housing in Atlanta, I anticipate rents to remain stable, if not increase, in the Region.
Valuations, on the other hand, are likely going to take a hit. Lenders right now anxious and not eager to lend. Borrowers are losing jobs and rethinking their decision to buy in this market.
Atlanta has been overbought for the last several years; I now see a buyers' market on the way!