Your Atlanta cash flow property criteria?

[George Broderick]

I am new to the market, but see a lot of potential for my self with apartments and single family.

I was curious for people already invested, what is your criteria for a cash flowing property here?

Specifically interested in 1-4 units, but also single family.

What areas are no good, which areas are?

What is the purchase price/repair price you look for for the most cash flow as a general rule?

What is the expected rent on said property?

What % of rent goes to short and long term repairs on said properties?

What type of tenants are you getting in these properties and what issues do you face with them?

What type of things make a property a "NO" for you?

Is there anything for a out of state investor should look out for?

I am extremely interested in networking with this forum and branching out into the market this year.

[Curt Smith]

HI George, A local info tip I have is that you should join the local REIAs.  REIAs are where doers hang who know each zip, refer contractors.  Tonight at GaREIA.com (click calendar) the new investors meeting see location on the calendar event is a landlord panel talking about your questions and more.

Read the paper off my profile 1st paragraph buying a bullet proof rental portfolio, which also answers many of your questions.

In short a quick go no go is the 1% guidline,  $rent / $all in  is 1% +/-.  In Atlanta its a challenge to be at or better;  $1200 (blue collar rent) / $120k all in (purchase + rehab + misc).   Some landlords will dip below 1% to buy better neighborhoods.  IE you buy the area 1st, the street 2nd, the house style 3rd, the condition of THIS house 4th.  Location location location then house is same in buying rentals.  Read my paper, the capital asset is not the house, its the tenant.  You need to think in terms of attracting and how to keep quality tenants,, IE its much like fishing, you need to know what type of bait, where to fish to catch good fish.  :)

Read my paper to avoid buying tough to manage areas just to get cheaper houses.  Cheap houses often are tough to manage and actually get long term paying renters...  

Leaning to screen and manage tenants is another key skill to having a decent stress free live as a landlord.  GaREIA has an excellent landlording class 4th Thurs.  Teacher is excellent and all evening classes are free.  I learned a lot.