All Forum Posts by: Linus Zhao

You may want to look at Paulding county - Powder Springs, Dallas, Mableton, Austell. Gwinett and Cobb counties have become too expensive. 

@Linus Zhao

Hi Linus I am a investor and property manager in the south metro area of Atlanta.

In 2019 I bought my first SF home in Henry County for $144k. Over the next year I lived in the property and self rehabbed $12k worth of cosmetic updates. In October 2020 the house for appraised for just over $180k and is currently rented out at $1600/mo.

I also manage a rental portfolio for multiple OOS investors. Recently we purchased 2 SFH for ~$175k each in the Locust Grove area of Henry county. Both homes require <$5k updating with the first renting for $1700 and the other we will be posting for $1800 in mid February.

Henry county has experienced explosive job growth due to a large warehousing presence as it is along the I-75 corridor and within a short commute to ATL. In my experience there is a large stable applicant pool that easily surpasses the supply of homes for rent. We have screened and placed tenants in 10-15 days on average. We have been able to rent out SFH's easily with in the 1% rule, often exceeding.

Gross rents in Henry County will continue to rise along with value appreciation that as it stands right now is in the 12-14% range annually and is outpacing the prices of homes on the market. My business has had a positive experience in the south metro market, might be an area you want to check out. Feel free to reach out if you have any questions about the area or managing properties out of state.

Good luck!

Hi Chris,

SFH .Not sure what's in your assumption but it will likely be hard. Look way outside, maybe. beyond cobb and Gwinnett. Paulding county maybe. some city in the Henry county maybe. feel free to pm me. Have a good day.

Duplex and plus you might be able to find something that generate more cash flow but might not in b+ neighborhood. 

 What kind of mortgage rates are you assuming in your calculations? With a 30-year 3.25% mortgage, a $220k, $1500 per month property is very unlikely to cash negatively even with conservative estimations. Also, rental prices have gone up significantly in the past couple of years. I was able to lease a property I paid $204k for at $1700 per month within a week. 

Hey Linus,

I like OTP (outside the perimeter) investing personally. I think you can hit your numbers and then some if you go out a bit and may also catch some "extra" appreciation. You'll definitely want to get into good school districts so you have the most exit strategies should you decide you don't love Atl investing. 

Anything in Cobb county that has good schools would likely be a great investment (of course, run your numbers). You have a ton of competition right now and even the usual homeowners are pulling out cash for purchasing. It'll take some persistence, but I'm betting you'll find something. :) 

I'm also assuming you want an SFR - is that correct?

you might have better selection of options when you increase your budget to under 250K. Target rent 1500-1800.