The worst time to buy a rental property?

[Jorge Pirela]

I've been researching about BRRR and rental properties in general, and looks like in my area (Acworth, GA) single family homes that are being listed in the price range I can afford (175-220k) have a rental price of around 1300-1500 when you shop around for similar homes online, so when I run my numbers on them, including repairs, vacancy, capEx, taxes, and all that stuff, it turns out they would be cash flowing 150$ in the best cases, and the rental market doesn't seems to allow higher rents, so, what am I missing out? Why there are all these $225+ homes being rented for around 0.6% of their value? How are those landlords even covering costs? I'm a 23 year old looking to invest into real estate but all this got me really confused

[Bjorn Ahlblad]

@Jorge Pirela you are right on with your analysis. So you will have to work a little harder. One way is to search out properties that are distressed and rundown that sometimes is a tip off to a tired LL as well-once refurbished you can bring rents to market following leases and local laws. If it is listed get after it! If you found properties like that by combing your area go to the county website, get the name of the owner and contact them.

If you want to invest locally draw a circle around your house indicating how far you are willing to drive, it will contain lots of pockets where you might still be able to cashflow even if it is a little off the beaten path. All the best!