High Income Producing Property in Atlanta, Georgia!! 30% Cap Rate

[Larry Charles]

Should I invest in this property?

Here is the high income producing property in Ashview Heights that is off-market. The property tax records show a SFR but it has 8 bedrooms and 1 studio in the basement. 4 bathrooms. Its about 2,000-2,200 sqft.

The property is 100% occupied, with currently a total of 9 separate tenants paying between $440 and $600 each, per month totaling $4,600 per month before expenses (Electric $450, Water $200). Each tenant has their own room with a refrigerator in their room and they each share a bathroom and kitchen.

It will need a full rehab (new roof, new floors, kitchen and bathroom remodel, etc).

The asking price is $159,000

Rehab is $50,000 to $80,000

Gross Annual Income is $55,200

Annual Expenses-$7,800

Taxes-$531

Cap Rate-29%

Cash on Cash Return-19.6%

The only 8 bedroom 4 bath comparable sold for $388,500 in October 2018.