Atlanta cap rates for multi-family?

[Julie L.]

Does anyone know what the average cap rates are for NW Atlanta?

[Joel Owens]

Be careful in GA. Lot's of really overpriced trash multifamily properties right now in marginal areas.

The really good stuff traded hands 3 to 5  years ago.

Sellers love trying to sell this crap to out of town investors.

Pay special attention to the type of tenant base. Look at tenant loyalty factor. You want a good amount there for a long time and paying rent on time like clockwork. Watch out for ( newly stabilized) properties where the seller offered free rent,half rent, and or waiver of security deposit to move in. Lot's of deadbeat tenants screw the past landlord and have thousands to move into another place. They pay for say 3 to 6 months and then screw that new landlord again. That is why you want to see years of positive history with a property and tenants paying. Some turnover is okay if a small percentage like 10%.

Older landlord looking to retire that has not raised rents in a long time with great tenants in a good area tends to be a good fit for buying.

Stay away from newly stabilized  in 6 months to 1 year and claiming ( newly rehabbed ). Often the sellers slam crappy tenants in and then put lipstick repairs on the property. The tenants are bad and the property in coming recent years will need larger repairs to mechanical systems  and other issues which will suck down cash flow with actual versus expected returns.