Southwest Atlanta Rental Property

[Michael Giuffre]

Hi all - I'm a new investor, looking for buy and hold rentals, been doing some pretty exhaustive financial modeling of deals for the past 8-10 months and am now under contract on a 6bed/3bath, 2700sqft home in Adair Park (SW Atlanta, zip 30310).  It's impossible to find good comps (they vary wildly and tend to either be foreclosures or fully renovated or much smaller)  and the home needs work (new roof, lots of cosmetic items, etc.) but nothing imminent - probably about $15k worth though.  It has an existing tenant paying ~$1,350/mo. Section 8.

My question is: Now that I've had the inspection and uncovered ~$15k of repairs that will be needed over the next year or two what would you say is a fair purchase price for the size house, area and fact that there is a tenant already living there?  I'm terrified of overpaying on my first deal but know there are backup offers in the event I'm not able to renegotiate with the seller.  Any thoughts or guidance would be greatly appreciated!