Help me with Market Analysis

[Jinwon H.]

I'm under contract to buy my first investment property to house hack. Alpharetta, GA, North of Atlanta.

A duplex with identical two 2bd/2ba 1100sqft unit. 

I would say the property condition is class C. One unit is renovated recently with sheet vinyl flooring, Formica countertops, and cheap white appliances. The other has similar quality finishings with much more wear and tear. They are both rented for $975/month.

The property's assigned schools were terrible before, but in 2018 school year, the neighborhood is reassigned to decent elementary and middle schools and a great high school.

I think the new school assignment could potentially bring the neighborhood to class B, and the convenience of the location (close to high way and malls) may be able to attract class A tenants. 

2/2 apartments around the area go for $1700-$2300, and the Rentometer calculates around $1650 is the area average and median.

On one hand, there's a 3/2 unit across from the street that's been sitting on the market for a while at $1400. On another hand, there's a 2/2 unit within the neighborhood that got rented for $2000 last year.

Given this information, how much would you be willing to upgrade?

I'm thinking LVP throughout with LVT in bathrooms,  replace a wall with kitchen island to have open common space, recessed lightings, granite countertop, stainless steel appliances, and new fixtures, outlets, and paints.

[David Hildebrandt]

If I am ever not sure of the market for rents in a given area. I will call the vacancies listed within 1/2 mile or mile, schedule them for a Saturday morning and go see each of the places. Finishes can look way different online, AND there are a lot of nuances and detail to each unit...parking, utilities, application fees, pet policies, smoking policies etc. sometimes that info is not readily available online. I try to visit between at least 3 and 5.

Remember that a tenant can't rent a place that is already rented, so just because something rented for X dollars last month really has no bearing on what you can get this month. They are comparing everything available NOW!