Single-family residence buy & hold investment in Mableton, GA

[Hansen Zuo]

Investment Info:

Single-family residence buy & hold investment in Mableton.

Purchase price: $268,000
Cash invested: $71,774

Single-family (near turn-key) buy & hold rental
Financial projections:
Year 1:
NOI: $1111.75 (Monthly)
BTCF: $205.08 (Monthly)
CoC: 3.32%
Cap Rate: 4.66%
Year 5:
NOI: $1230.02 (Monthly)
BTCF: $323.35 (Monthly)
CoC: 5.24%
Cap Rate: 4.09%

What made you interested in investing in this type of deal?

As a first investment property in the U.S., we want to execute a simple buy n' hold strategy to get familiar with property investing in U.S., We chose Atlanta among a host of other cities based on quantiative factors such as population growth, past appreciation, and affordability (price-to-income ratio and sales-to-rent ratio), as well as qualitative factors such as whether the state is landlord-friendly, long-term economic outlook and climate

How did you find this deal and how did you negotiate it?

We found the property off MLS. We targeted Mableton because it is in Cobb County, a county that is economically prosperous and friendly to landlords. Mableton specifically has a convenient location (closer to the Midtown, Downtown, and the Battery than lots of other suburbs), it is also very ethnically diverse with no one ethnic group as the dominant group. Furthermore, it is somewhat lower priced than some of the neighboring cities.

How did you finance this deal?

Conventional financing with 25% down

How did you add value to the deal?

No plan to add value immediately.

Did you work with any real estate professionals (agents, lenders, etc.) that you'd recommend to others?

Worked with Matt Nicklin (OneSource Real Estate LLC) as a realtor, Team Wagner @ BankSouth with financing, and Lionel Thomas (All Alerts Home Inspections) as the home inspector. They all did a bang-up job in helping me navigate my first property purchase in the U.S.