Not easy to find Town Homes/ SFH without Rental Cap

[Swathi Vangari]

Hi,

I have started working with a realtor in Georgia. Our main criteria is to find a home with no rental cap and in a area with Good school ratings.

These are the cities which were primarily looking for -Suwanne ,Johns creek ,Alpharetta,Roswell,Peachtree,Milton,Duluth,Sandy Springs, Lawrenceville, Dunwoody

My Realtor mentioned that it is very unlikely to find  a property in these areas. The Areas with no rental cap have no good school ratings. 

Our goal is to buy a long term rental property. Are we headed in right direction? Is it true that we will not find any properties with no rental cap in Georgia ( or in the cities mentioned)?

[Michael Dumler]

@Swathi Vangari, this is why many ATL investors stay away from HOA communities. Rental-restricted subdivisions are always a gamble and eat into cash flow. The markets noted above are all B+/A rated, therefore, it's no surprise that an HOA has enforced rental caps/restrictions. Furthermore, your real estate agent can filter through non-rental restricted HOA communities on the MLS to save time. Moreover, have you thought about widening your market search to include Cobb County and Cumming? Depending on your budget you still have many options to explore. How strict have you been with the school ratings? Are you only looking at 9-10/10 school districts? There are always going to be tradeoffs in real estate investing and this could be the underlying problem. Hope this helps!