North Atlanta (OTP) SFH rental properties

[Emmanuel Murillo]

Hi BP,

I'm fairly new to BP and to real estate in general; I've been reading all the material I can get my hands on to get acquainted with the concepts, strategies and deal analysis; my short-term goal is to buy and hold a couple rental single-family units in north ATL (OTP). (Acworth, Kennesaw, Marietta, Smyrna, Woodstock, Sandy Plains area).

I've been using Zillow, realtor.com, etc.. to test-run numbers on properties that match my criteria but I'm having a hard time finding cash flowing properties or properties barely break even.

My question for existing (rental) investors around this area:

- What are your guidelines (Cap rate, cash on cash return) for properties in this area?

- What is the minimum monthly cash flow you'd do for a SFH in this area?

Thanks in advance for your feedback.

[Chrissy Parsons]

@Emmanuel Murillo, I agree with @Parker Stiles that some marketing becomes key. Direct mail can be quite effective. 

If you are in a competitive market, consider mailing to Seniors with15+ year ownership and low Financial Stability Scores (FSS)

This group is often ready to downsize or transition to assistance. It's also unlikely that they have done any updating and kept up on all the maintenance so a lower offer is more reasonable and you have a renovation opportunity.

Come up with a list of services you can offer to make it easy for them to sell (as-is) and to move (clean-up service). Find some people who run yard sales and purchase estate items that you can bring in.

If someone has been thinking about selling, but are overwhelmed at the prospect of fixing the house to put it on the market, your letter could just do the trick if you let them know what you will do for them