LTR Search Criteria - Advice please

[Lance Mundo]

Good morning everyone,

I'm developing my local LTR search criteria, and would appreciate any input. Please be frank, and let me know what you think.
Lance

Criteria:

My ask: I'm looking for a SFH opportunity within the greater Atlanta metro area that will cash flow at least $200 per month and provides a value-add opportunity either by raising rents or rehabilitation. I'm looking to put about 30K in renovation at max. My criteria are listed below.

Property Type: LTR opportunity (SFH, Small multi-family (4 units or less), condominium)

Location: Atlanta macro market, micro markets of: within a one hour drive of 30265 zip code

Condition: Light/moderate rehab to turnkey

Price range: $250,000 - $450,000

Profitability: Cap rate: 6%, Cash flow: $200, CoC: 10%

Goal: Value add, buy, and hold rental property

Criteria: no abatements, no foundation issues

Additional: Class D property in a Class C/B neighborhood

Financing: Focusing on subject to, and seller financing for now. As my available capital increases, I can pursue possible traditional avenues. I could also entertain partnerships for traditional or cash offers.

[Nathan Gesner]

Quote from @Lance Mundo:

I don't see a problem with your list. Just know that we're still in a tough market. Prices are high, rates are high, demand is high. Prices are still dropping and, because this is a unique situation, nobody can predict where the bottom is. If you pay $350,000 for a house today, it maybe only be worth $300,000 in six months. Are you OK with that as long as it cash flows?

I think demand for rentals will only increase over the next 24 months, which would normally increase rent rates and occupancy levels. However, we still have a declining economy and people may tighten their purse strings if things don't turn around soon.

On top of that, our government may choose to "fix" problems with more rent regulations.

You can make money in any market. Just keep your head on a swivel.