This property is available now! I love this supplier. They have some of the best rehab jobs I’ve ever seen. I even own a property from these guys.

Location: Atlanta, GA. Built In: 2006

Purchase price: $122,222 (not a foreclosure, normal sale)

Previous sale price: $222,500!

Property info: 4 bedroom, 3 bathroom, 1386 square feet, Basement! atlanta

Income

Monthly rent collected: $1100

Expenses

Monthly expenses

Property taxes: $224.42

Insurance: $42.08

Property management fees: $110

Monthly expenses (conservatively estimated)

Vacancy (7%): $77

Repairs (5%): $55

Total Monthly Expenses- $508.50

Net Income = Income – Expenses =  $591.50 ($723.50 with no vacancy or repairs)

 

Advanced Numbers

Cap Rate =

annual net income (non-inclusive of mortgage payment) / purchase price = 5.8%

Cash-on-cash return =

Depends on your leveraging.

 

Are you thinking the cap rate is lower than what you are interested in? Check out one of Ali’s articles from BiggerPockets that hits this exact topic!

The 2% Rule: Fact, Fiction, or Feasible?

Comments
  • Joanne
    Reply

    Hi Ali! I’m new to your site and definitely new to real estate investing. I came across this listing and wanted to get more information on it’s availability and condition. Do you have any internal pictures of the home?

    • Ali
      Reply

      Hi Joanne! I just saw your email come through so I’ll talk to you more on there. I can always get interior pictures. A lot of times they aren’t available when the property first becomes available because they are usually for sale before the rehab is done. But I can always check in with the seller and see what they have. If they have them, they usually have both pictures and a video.

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