Skip to content
×
PRO
Pro Members Get Full Access!
Get off the sidelines and take action in real estate investing with BiggerPockets Pro. Our comprehensive suite of tools and resources minimize mistakes, support informed decisions, and propel you to success.
Advanced networking features
Market and Deal Finder tools
Property analysis calculators
Landlord Command Center
$0
TODAY
$69.00/month when billed monthly.
$32.50/month when billed annually.
7 day free trial. Cancel anytime
Already a Pro Member? Sign in here

Join Over 3 Million Real Estate Investors

Create a free BiggerPockets account to comment, participate, and connect with over 3 million real estate investors.
Use your real name
By signing up, you indicate that you agree to the BiggerPockets Terms & Conditions.
The community here is like my own little personal real estate army that I can depend upon to help me through ANY problems I come across.
Real Estate Deal Analysis & Advice
All Forum Categories
Followed Discussions
Followed Categories
Followed People
Followed Locations
Market News & Data
General Info
Real Estate Strategies
Landlording & Rental Properties
Real Estate Professionals
Financial, Tax, & Legal
Real Estate Classifieds
Reviews & Feedback

Updated almost 9 years ago,

User Stats

12
Posts
1
Votes
Huyen Nguyen
  • Chattanooga, TN
1
Votes |
12
Posts

Analyze Triplex near ATL airport

Huyen Nguyen
  • Chattanooga, TN
Posted

We live in Chattanooga TN but after months of researching, I realize that for the same price, multi-families in the south of Atlanta, GA area have more sqft, can rent for more, with lower property taxes. Here's a triplex that we found that is quite close to the international airport, located in College Park, GA, that is selling for 153k. They're townhome style, so each unit can be bought/sold separately, with separate tax codes.

Here are the stats:

  • 3 units, 3 beds, 2.5 baths each
  • Built in 1984
  • All currently rented (don't have actual rent amount, but I asked a property manager in the area, who said she can rent it for 795 - 800 a month each)
  • Gross Rent: $2385 (795 * 3)

The numbers:

  • Monthly Total Operating Expense: $1050 ( 5% vacancy, 5% repairs & maintenance, 5% cap ex, lawn care, 150$ insurance --guesstimate, 10% property mgmt)
  • P&I: $620 (20% down ($30,600), 4.5% interest, 30 yrs)
  • Estimate $1000 in repairs (we haven't seen the inside), total investment including closing cost comes to $36,190
  • NOI $16,123
  • Cash Flow $8,681
  • Cash ROI 24%
  • Cap Rate 10.54%
  • Gross Rent Multiplier: 5
  • Monthly Cash Flow per Unit: $241

After all the learning I've done with the help of BiggerPockets, I want to make sure my numbers make sense and I'm not missing anything major. Please point out mistakes that I have in this calculation, since I currently view this as a great opportunity and it could be a bad idea in the eyes of seasoned investors. 

If anyone lives/works near the area and would not recommend this area, please also let me know why. I understand that knowing an area is important and I don't personally know the area well. 

Thanks for your time and wish everyone a successful investing journey!

Loading replies...