Atlanta Duplex in D Area - My First Deal

[Robbie A.]

Hello BP,

I am a first-time investor looking for some brutally honest feedback on an MLS duplex in the West Atlanta area. It is turnkey for the first year and attached is the BP calculator numbers. The numbers I put in were very conservative, including the 20 year financing (which I'm not married to) and the low insurance quote. Tenants are currently in place and paying $1445 altogether so there is cash flow and since it's a first deal, I may drop the property management company.

It is being inspected this Saturday and basically, I am looking for a reason not to buy it... 

So tell me... Why should I not invest in this property?

[Mark Graffagnino]

I own two houses in 30318, on the other side of Hollowell Pkwy, in Collier Heights which is a nice neighborhood and is a Historic District.  That being said I'm going to be selling both because I can't seem to get good tenants over there; have had one eviction and one abandonment that trashed the house.  I screen the hell out of people but maybe I'm just jinxed in that part of town.  I've owned both since 2013, I self manage and these two properties take up 90% of my time compared to the other two that I own farther out.

Appreciation has been much slower than I had anticipated; there are still a lot of distressed sales in 30318.  I am already seeing with the first house I am going to list that I'm going to have trouble with it appraising for what my broker says we can sell for.

Personally I would't buy a duplex off of Hollywood.  Granted I haven't driven that area in a few years but I didn't like what I saw back then....too many people/adult males "hanging out" during the middle of the day when most people are working.  That was enough for me to not even do a night time drive through like I always do with any house I'm thinking of buying.

That is my humble 2 cents.