What is a good cash-on-cash return for a turnkey single family rental in ATL in B or C neighborhoods? We have been seeing about 3-5%, but that seems quite low. Thanks in advance!
So obviously, "good" is a very subjective term. What's "good" to one investor may be "great" for another. Honestly, for a turnkey rental in an ATL B/C neighborhood, 3-5% is pretty dang good from what I'm seeing.
Returns are quite low on turnkey rentals in any hot market, especially with increased competition from home buyers. In a market like Atlanta, which has become even more popular during COVID, you aren't likely to find much cash flow in B/C neighborhoods from turnkey properties.
This isn't to say it's impossible but I would suggest at least looking at properties with minor ($3-8k) rehab. This is your best chance for "good" CoC with minimal additional time/cash invested.
Please, feel free to reach out anytime if you have other questions or just want to chat!
Real Estate Broker · Columbus, GA · Member since 2018 · 28 posts · 22 votes
5y
@Ezenwa Jarrett @Brenden Mitchum is on target. If you're looking at cash-on-cash then you're doing well to get 5% on B or C neighborhoods. Atlanta has become very targeted by out of state and foreign investment. Competition is high to find the deals and buyers are paying more by the day.