Multi-Family in Atlanta Metro area

[David N Peterson]

I have started researching multi-family in the Atlanta metro and have surmised the following conclusions:

1. There is a LOT available to buy in Westend, if you have the appetite for it.  I think this area will be GREAT in about 5 years. 

2.  The multi-family close to the perimeter does not cashflow properly.

3.  In order to get great multi-family cashflowing deals in atlanta, you have to go out to the suburbs. 

I'd be interested in any other observations you guys have, that would help my own or other's investing in Atlanta, thanks!

David

[David N Peterson]

Here's a sample breakdown.  You can get a duplex out in lawrenceville for about $180K.  It gets approx $1600 in rent.  The taxes are around $1600 a year.  Insurance another $700 a year.   If you buy the same house you're lucky to get $1395 a month in rent.  Taxes around $2700 a year.  I built an XLS and started running numbers on MF verus SF.  SF *may* get more appreciation though with MF you can get the same if you improve to get rents higher.  For example, you can get a duplex for around $110K, that's getting about $1000 a month in rent....improve it, and increase rents, and voila! you have a $160K property.  I imagine that these MF's will significantly increase over time.  Just ask the owners of this blog about the Denver market and how its done that 8).