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Updated about 12 years ago,
Multi-Family Appreciation in the "slums" (Don't flame me for mentioning appreciation!)
Hi all,
I've come across a good looking deal in Atlanta.
It's a package of 3 duplexes, asking $200k total.
After speaking with the agent, he said that everything has been recently renovated, and 5/6 units are rented to section 8 for $900 each. Expected cashflow is $64,800, or $32,400 using the 50% rule.
Stellar cash flow.
We haven't dipped much into metro Atlanta due to uncertainty about the area, and the lack of connections. We don't have any friends, or friends of friends that live in these areas.
Looking 5-10-20 years forward, how would a multi-family unit appreciate versus a SFH in the same, not so good area.
I know we can buy SFHs in the same area for about $25-$35k in rental condition, with or without a tenant inside.
From your experience, do multi-family properties appreciate alongside their SFH neighbors? Faster? Slower?