All Forum Posts by: James D. Beaty

Hi Everyone,

   I am thinking about making an investment in the West Palm Beach neighborhood of  Pinewood Park (between 59th and 45 st).  Personally, I have not been to the neighborhood but have received information from my realtor and family members that the neighborhood is OK.  From what I know I would categorize the neighborhood as class C, but what is throwing me off a little bit are the taxes.  For an 1800 sqft home the taxes are about $5k/ year.  This seems high to me but maybe it speaks to the fact that the neighborhood is turning around, or it could be the city needs more tax revenue.  

Would this be a good neighborhood for a rental property?  Any chance at appreciation for a buy and hold? 

Any thoughts or ideas from individuals who are familiar with the area would be much appreciated.

Thank you, 

James

I have not set a goal for cash flow.   Maybe I should, but I have been focused on the return on capital invested.  The price point is $350k and under.   Do you find the properties in Rome, Dalton, and Athen tend to generate higher returns (better price-rent-ratio with similar rental demand)   than those in the Atlanta metro area.  

Hello Bigger Pockets,

In August of 2020 I formed an LLC for investing in rental properties focusing on the Atlanta metro area. The BP website has provided information and experiences that were extremely helpful for creating the business plan for the LLC. The plan was to invest in Class B /C properties (and neighborhoods) with the following investment criteria:

CoCROI >= 8% (assumptions property management 10%, repairs and maintenance 8%, replacement reserve 8%, vacancy 5%, loan - interest rate 5%, 25% down, 30 yr loan)

Over the past 5 months I have found very few properties that have met the criteria and have begun to focus my search on the following areas: Marietta, Smyrna, Austell, Hapeville, East Point, and Atlanta.

My understanding is that the market is very tight right now (sellers’ market - due to low interest rates and low inventory). Through analysis of many different properties, I have also concluded that I am likely to meet my CoCROI numbers with multi-family class C homes in class C neighborhoods.

Do you all think it is possible to get 8% return in this real estate market or do I need to change my strategy by reducing my CoCROI expectations or reduce the condition of the home / neighborhood to meet my numbers.

Thank you again to all of the contributors to this site. The information here is invaluable.

James