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Updated about 4 years ago,

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Joep Heijnen
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Please help: Turn key SFR 3 bd2 ba 2,342 sqft Fayetteville GA

Joep Heijnen
Posted

I'm making move to purchase my first rental. I'm looking into investing in ATL area. I found a SFR for 240k completely rehabbed and the possibility to purchase without it actually hitting the market.
Its a SFR 3 bd2 ba 2,342 sqft house on a 1.2ac lot. My friend is a property manager and she lives on that block (also owns rentals on that block). I'll be an out of state owner.
It seems to me that the area is in an upswing and I think there is a good chance it will continue to grow (lots of jobs in the area).
I think I can rent it for somewhere around 1700/mo - 1800/mo (useful comp reports seem difficult to get, rentals vary a lot in price)
When I run the numbers I can't seem to get real cash flow out of this. I'm trying to finance as much as possible (minimal down payment) and can get a APR of 3.6% with 30years fixed.
Completely new rehab with brand new central heating/cooling system, new appliances, new roof and new floors.

I'm ok with going mostly for the appreciation since I'm currently out of the country and I prefer to increase my chances for stable long term tenants. Its my goal to invest in lower end properties which yield more move cash flow when I get back to US. 

Does anyone have some advice for me? Does the deal outlined above seem like it has potential? Why (not)?

Also, is it reasonable to assume 6% maintenance, 6% cap ex, 8% vacancy loss, and 6% prop management? 
Is anyone familiar with vacancy rates in this area?


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