OOS Investor - Atlanta GA New Construction

[Steven Nguyen]

Hello BP members,

I am an OOS investor based in CA. I see new construction in Atlanta GA for a 3 or 4 Bed / 2 to 3 bath costs around 230k to 270k.

I had a few questions:

1. Do new home builders sell to OOS investors ? I know some only sell to people who will use as their primary residence.

2. What is the expected rent to value ratio ? I'd be happy with a 0.75 RV ratio given new construction has lower CAPEX/maintenance.

Thanks for any insight.

[Canesha Edwards]

@Steven Nguyen

I think OOS investors see prices in Atlanta and kind of lose perception. While prices might be low to you, the prices are relatively high compared to historical prices in Atlanta.

Another thing to point out. Even if you’re okay with a .075% rent/value ratio that’s still $1,725 a month in rent. The people who can afford to pay that, would more than likely purchase that same new construction home instead of renting from you. Rates are super low, making the mortgage payment probably cheaper than the rent you are looking to charge.

What’s your exit strategy? I wouldn’t bank on appreciation. The market is already at a high. We can’t predict if things will keep going up. But what we do know for a fact is that a correction always happens. Real estate moves in cycles. The number one rule of investing Is buy low and sell high.

Just my two cents. Best of Luck.