20% ConC return...Help Please!

[Ghenia Flewellyn]

Anyone buying already rented homes in Macon, GA or Griffin, GA? Cash on Cash returns are like 20%! low income, yes. Some crime, yes. But long term tenants. Any advice either way? I'm considering entering intocontract on 3 properties on Monday. Would really love to hear your thoughts!

[John Warren]

@Ghenia Flewellyn make sure you are running your numbers with healthy vacancy, maintenance and CapEx numbers. For a single family home, you might need to budget extra for maintenance in particular, depending on the size and build quality of the home. A lot of people don't take into account the fact that lower end tenants cause a much larger amount of maintenance issues on average than do A or B class tenants.